Chinese property developer Shanghai Pengxin Group Co has won approval to buy 16 dairy farms in New Zealand.

The approval comes on condition Pengxin invests NZ$16 million ($13 million) in the farms, protects and enhances heritage sites and establishes an on-farm training facility, according to the New Zealand regulator's decision.

The company would not comment on the decision, which came after New Zealand officials were forced to reassess approval following a successful bid to squash the decision by a local rival group.

New Zealand farmers and opposition politicians have objected to selling farmland to overseas buyers, fearing profits from key industries will go overseas.

The properties encompass 8,000 hectares and can support 25,000 dairy cattle. Shanghai Pengxin filed an application in April last year, indicating it may spend as much as NZ$200 million on the properties in the first two years.

New Zealand's associate finance minister, Jonathan Coleman, said there were 27 conditions to ensure Pengxin "delivers substantial and identifiable benefits to New Zealand".