NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / New Zealand

Russian magnate ordered to sell NZ land after liquor-plant plans fall through

NZ Herald
24 Oct, 2014 08:30 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Mikhail Khimich. Photo / Supplied

Mikhail Khimich. Photo / Supplied

A wealthy Russian has been ordered to sell his rural property after failing to make progress on a promised boutique winery and vodka distillery.

The Overseas Investment Office (OIO) told Mikhail Khimich in May to sell the 10ha near Waiwera, after a one-year deadline to commence work on the project expired.

Read more:
• From Russia with promises: Why have billionaire Mikhail Khimich's NZ businesses struggled?

The Moscow-based former oil mogul, who gained New Zealand residency in May last year, has proved a generous benefactor to Team New Zealand, other sports and horse racing since landing in New Zealand in 2008.

His superyacht Thalia became a fixture on Auckland's waterfront and Mr Khimich attended high-profile events from The Hobbit premiere to the opening of the national velodrome by Prince William.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

But his New Zealand business ventures, including Waiwera Water and the Waiwera Organic Winery, have struggled to achieve the global brand recognition he promised.

Mr Khimich first sought OIO permission to buy the rural block in 2010 when he took a 60 per cent stake in the Waiwera businesses of John St Clair Brown, former owner of the Waiwera hot pools, bottling plant and other Waiwera landholdings. At that point, a bottling operation was planned to increase production of Waiwera Water and take the mineral water brand to global markets.

After taking full control of Mr Brown's Waiwera companies, he went back to the OIO for retrospective permission to develop a distillery and winery producing highly pure vodka, gin and rum for the premium spirits market and fortified wine from special grape varieties to be grown on the land. He promised to invest $6 million in a staged development of the property, in the Waiwera valley.

Advertisement
Advertise with NZME.

The OIO approved the purchase retrospectively in March last year but imposed conditions including a 12-month deadline on work beginning.

Mr Khimich's Waiwera Group CEO, Lloyd Brown (no relation to John Brown), says the project did not proceed because the land was later found unsuitable for growing the grape varieties intended. Yet Mr Khimich told the OIO a winegrowing expert had assessed 65 per cent of the land as "highly suitable" for grape growing.

Another Khimich land purchase, the 1.8ha Waiwera Holiday Park, fell through while the OIO's recommendation for approval was awaiting sign- off by Government ministers.

The holiday park application came with promises of a luxury spa resort, with apartments and villa accommodation drawing tourists to Waiwera and creating jobs.

Discover more

New Zealand

From Russia with promises

24 Oct 12:32 AM

OIO staff spent 20 months investigating before giving approval in principle, at which point Mr Khimich pulled out. His lawyers blamed the expiry of a deadline on the purchase (which was conditional on OIO approval) from John Brown.

The vacant holiday park was sold this year in a mortgagee sale and John Brown says he plans legal action.

Government policy encourages foreign investment if it seems likely the country will benefit through jobs, export earnings, increased development and other criteria. In 2011, the Government introduced changes aimed at speeding up the processing of applications.

The OIO has eight assessment staff who analyse around 130 applications a year on average. Their performance target for applications of the Khimich type is to process 90 per cent "within 70 working days of active consideration". In the July-September quarter they achieved 94 per cent.

Correspondence the Weekend Herald obtained shows a big focus with the holiday park application was to establish that Mr Khimich fitted its "good character" criteria. OIO head Annelies McClure said the assessment was "thorough and exhaustive".

"While the OIO always endeavours to meet any contractual deadlines for applications, it is not responsible for any commercial decisions that an applicant may make - including whether to seek an extension to a contractual date."

Advertisement
Advertise with NZME.

Who is Mikhail Khimich?

An oil mogul who used to be a top executive and part-owner of Russian oil company Naftasib.

What's he doing in NZ?
Mr Khimich bought into Waiwera's bottled water and hot pool operations in 2010, promising to take the bottled water to the world. He later made applications to the Overseas Investment Office (OIO) to buy land.

What has happened?
Plans - first for a bottling plant, then a vineyard and distillery - on an inland block came to nothing and the OIO has now ordered that the land be sold. Ambitious plans to build a $30 million-plus international spa resort and transform the town also failed to eventuate.

Save

    Share this article

Latest from Business

Premium
Media Insider

Ex-TV host Matt Chisholm's bold new career; 'Hugely unpopular' - battle royale brews inside Stuff

04 Jul 10:13 AM
Premium
Media Insider

Stop the presses: Stuff closing about 15 Auckland, regional community newspapers

04 Jul 10:13 AM
Premium
Shares

Market close: Tourism Holdings drops as NZ sharemarket ends week on high

04 Jul 06:17 AM

Audi offers a sporty spin on city driving with the A3 Sportback and S3 Sportback

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Premium
Ex-TV host Matt Chisholm's bold new career; 'Hugely unpopular' - battle royale brews inside Stuff

Ex-TV host Matt Chisholm's bold new career; 'Hugely unpopular' - battle royale brews inside Stuff

04 Jul 10:13 AM

Well-known Kiwi's court move over story; Which political leader is best/worst with media?

Premium
Stop the presses: Stuff closing about 15 Auckland, regional community newspapers

Stop the presses: Stuff closing about 15 Auckland, regional community newspapers

04 Jul 10:13 AM
Premium
Market close: Tourism Holdings drops as NZ sharemarket ends week on high

Market close: Tourism Holdings drops as NZ sharemarket ends week on high

04 Jul 06:17 AM
Premium
Surge in new vehicle sales: Industry insiders explain three factors behind spike

Surge in new vehicle sales: Industry insiders explain three factors behind spike

04 Jul 05:00 AM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP