Foreign investors headed by New Zealand management have been given the green light by the Overseas Investment Office to buy two horticultural properties. Only last year, these same parties were rebuffed over a bid to buy a kiwifruit and avocado orchard.

Craigmore Sustainables has received permission to buy 479 hectares of sensitive land, inland of Waipukurau in Hawke's Bay and 59 ha near Gisborne. They will invest $52 million to develop apple orchards on the properties.

Chief executive Che Charteris said Craigmore felt more confident to apply for OIO permission after it understood what the Government's new threshold was for applications: "The difference between these and the earlier application is that these are developments - a conversion from one land use to another. They are regarded as economically and socially more sustainable."

Altogether the investments in the two properties is expected to create 100 jobs and boost exports by $30m. The total value of New Zealand apple and pear exports was $745m last year, tipped to rise to $830m this year. 

Stuff.co.nz explains how, at present, the Hawke's Bay land is used for cropping, stock finishing and grazing. Craigmore intends to convert 130 ha of the land used for barley and maize into an apple orchard.