The decision to block the sale of the 14,000 hectare Lochinver Station to a Chinese group was made because the benefits to NZ would not be "substantial and identifiable", ministers say.

The current owners, the Stevenson Group, had been hoping to sell the property to the China based, Shanghai Pengxin Group, through its subsidiary Pure 100 Farm.

The sale for the property near Taupo was for around $88m and needed both Overseas Investment Office (OIO) approval and the green light from two Government ministers.

However, it was blocked by ministers Paula Bennett and Louise Upston who had the final say over concerns that the deal would not add enough new jobs.

Associate Finance Minister Ms Bennett said in a statement, "we are not satisfied there will be, or is likely to be, a substantial benefit to New Zealand".

Lochinver Station near Taupo. Source: 1 NEWS

The farm currently has 22 staff. The prospective new owner intended to keep them all on and invest another $20m in the farm.

The Stevenson Group says it is is "disappointed by the process and the outcome" and that the decision would have "significant economic ramifications for the New Zealand economy".

Chief Executive Mark Franklin said the areas affected would be the areas of international relations, uncertainty of foreign investment and rural land prices.

He said in a statement that "we are unclear as to why this property is so different to the many others that have been approved through the OIO process".

In 2012, the Shanghai Pengxin group, which is owned by Chinese billionaire Jiang Zhaobai, was given approval to buy the 16 Crafar dairy farms for $200 million.

It said today that it was very disappointed over the Lochinver Station decision and it would be considering its options.