The Government has approved the sale of 11 dairy farms covering more than 3100ha in the South Island for more than $100 million to German investors.

Mannheim, Germany-based DAH Beteiligungs received approval to buy five farms for $54 million in December, the Overseas Investment Office said on its website.

Hamburg-based Aquila AgrarINVEST Investitions bought five farms for $38 million.

The German investors plan to boost spending on the properties, according to the applications. The office approved the sale of 27 farms to foreign interests in December, it said.

The office in December rejected a joint bid by China's Natural Dairy (NZ) Holdings and UBNZ Funds Management to buy 16 North Island properties known as the Crafar farms after the application didn't meet "good character" criteria.

Shanghai Pengxin Group, a Chinese property developer and owner of agriculture and mining ventures, said it would apply by the end of next month for approval to buy the properties.

- BLOOMBERG