Care urged over Dubai farm deal

A Maori trust with financial backing from Dubai remains in the hunt for Southland farms worth $150 million plus, according to a real estate agent representing the deal.

But the proposed purchases, financed by a Dubai group, have raised the ire of Federated Farmers.

Federated Farmers said it was urging the farmers who had deer, dairy, sheep and beef farms to conduct strict due diligence before entering into farm sale and purchase agreements.

The warning came after reports that the Maori trust has the financial backing from Dubai World, a struggling Middle East state-owned conglomerate with US$60 billion (NZ$84b) of liabilities.

The Maori trust, which could not be contacted, had contracts to buy up to 28 farms in Southland at agreed prices, real estate agent John Wright of LJ Hooker Invercargill said.

Discussions went back three months, but the deals were unlikely to be finalised before March (2010) and did not necessarily involve Dubai World.

Mr Wright said his client, Wynn Murray of Southland, represented the Maori trust, but he would not give details about Mr Murray's hapu – which has been reported to be connected to the Rununga of Te Rarawa tribe in Northland.

He would not confirm if the total amount was for more than $150m involving some 28,000ha of land, saying there were several real estate agencies involved in the deal.

But Mr Wright said he was cautiously optimistic the deal would go ahead in March after further due diligence involving the buyers.

Federated Farmers rural security spokesperson David Rose said the fact that deposits had been promised to some farmers, but then not paid, was like a red warning light against the deal.

They had been offered "exceptional money".

He urged farmers to conduct very strict due diligence of those behind the scheme and any agreements that were being used.

The Ministry of Foreign Affairs and Trade, the Serious Fraud Office and Land Information New Zealand had been made aware of the potential transactions, and these parties wanted to talk to the farmers involved.

- © Fairfax NZ News