A $5 million investment in a Central Otago vineyard has been approved by the Overseas Investment Office (OIO).

The Joval Wine Group (NZ) Ltd (John Fulvio Valmorbida and family), of Australia, has been given permission to buy 19.6ha of freehold land on Queensberry Terrace, Queensberry.

The $5,090,250 purchase would allow the company to grow grapes on the Queensberry site for its award winning "Nanny Goat" premium wine brand, the OIO decision, released this week, said.

The applicant planned to plant more vines, expand the winery, create a barrel room to increase capacity and employ more staff, the decision said.

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The New Zealand Companies Office website says Joval Wine Group (NZ), which was registered in 2003, is solely owned by Australian company Casama Group Pty Ltd.

"Nanny Goat" premium wine brand. Photo / Supplied

The website says the directors of the Joval Wine Group (NZ) are Frank Joseph Kraps and Timothy Ricketson Menting, both of Australia.

The Queensberry land is being sold by New Zealand company Avalon Estate Ltd, registered in Wanaka.

Its directors and shareholders are Janusz Waldemar and Mary Elizabeth Zurakowski.

The OIO decision said the Joval Wine Group believed that with its strong beverage distribution network in Australia, (which sold about 9.1 per cent of all Australian on-premises wines in 2018), it could make its "Nanny Goat" label a "well known premium brand" in Australia and overseas".

Opening up the Australian market to Central Otago wines was likely to benefit the New Zealand wine industry generally, the statement said.

"The applicant has the ability (through its distribution channels) to place its products at the premium end of the market. The applicant also has the potential to raise the profile of the region, through promoting its award-winning Nanny Goat brand."