But in a television debate on Sunday, Economic Development Minister Steven Joyce called the main opposition Labour Party "xenophobic" because of its plans to tighten foreign ownership rules.

Labour finance spokesperson David Parker said in a statement that the government had broken its own promise to restrict foreign land sales.

Chinese firm to buy NZ farm, causes controversy

Fonterra eyes China UHT milk plant in 2014/15

"Labour has criticized the sale of farms and houses to American, European and Asian buyers. It is not racist or xenophobic to do so," he said.

An online advertisement by selling agent Bayleys said Lochinver Station was valued at NZ$70.6 million ($60.12 million), "placing it at the top of the most highly valued stations in the country."

The 13,800-hectare Lochinver Station had the capacity for 100,000 stock and included three airstrips, a lake, 22 houses to accommodate the families of 20 permanent staff, a staff recreation center, a school and 91 km of roads, said the advertisement.

The Lochinver deal would be the third major purchase by Shanghai Pengxin to draw opposition the last three years.

In October last year, Shanghai Pengxin Group announced it was looking to take over South Island-based Synlait Farms Ltd, of which it already owned 74 percent through New Zealand Standard Farm, a subsidiary of its Milk New Zealand unit, prompting Federated Farmers to express concern over vertical integration.

Shanghai Pengxin bought 16 North Island dairy farms for NZ$200 million ($170.31 million) in 2012 after a controversial and long legal battle through the New Zealand courts, which resulted in changes to the way the OIO had to assess land purchases by foreign interests.