Wellington blocks farm purchase by China firm

Wellington

NEW Zealand's government on Thursday blocked the NZ$88 million (S$78.1 million) purchase of a local farm by China's Shanghai Pengxin amid public concerns about foreign land ownership. The move was a surprise as the Overseas Investment Office, a body that supervises foreign bids for sensitive assets in New Zealand, had previously given its approval for the sale of the 13,800 hectare Lochinver farm in the country's North Island.

"We are not satisfied there will be, or is likely to be, a substantial benefit to New Zealand - a key requirement for applications of sensitive land of this size," the government said.