Two applications were refused this month. In both cases a factor for the refusal was that they were not contributing sufficient capital.
In the first, John Herrick of the U.S.A. was refused approval to acquire land in the Nelson/Marlborough area. The details of the land and the price have been suppressed. He intended to "acquire the land primarily as a lifestyle property and proposed to construct a house on the property. It was proposed that the applicant would reside on the property for approximately six months each year. In addition it was proposed to plant approximately eight hectares in Pinus Radiata." The application failed because it did not meet the policy for purchasing lifestyle properties, which requires the applicant either to take up permanent residency within 12 months or to undertake significant development of the property and convert it into a viable investment property. Herrick had no intention of seeking permanent residency and was investing only $42,000 over ten years in the proposed forestry development. That did not equate to "significant development".
In the second, Ponga Property Holding Ltd owned by S.J. and L.S. Hansen of Denmark had applied to buy land in the Auckland area. They "proposed to create a unique experience for overseas tourists on the property, the developments being completed over a period of ten years. The property was to be developed to provide horseback riding experiences for both tourists and New Zealanders." However, "the Commission was not satisfied that the possibility that one job might be created and that only $40,000 of capital for development purposes would be introduced into New Zealand was sufficient for the proposal to be in the national interest. The proposal seemed more akin to the property being acquired for lifestyle purposes. Such applications are usually refused."
It is refreshing to see some critical faculties being brought to bear at last on such claims.
Juken Nissho Ltd, which is owned 85% by Juken Sangyo Company Ltd and 15% by Nissho Iwai Corporation, both of Japan, has approval to acquire a further block of land to add to add to 148 hectares it had had approved for purchase in March 2000 (see our commentary of that month). This block is three hectares at Hillcrest Road, Kaitaia, Northland, purchased for $380,000. The 148 hectare block adjoined its manufacturing operation and was to be used to build a veneer mill and solid wood mill, which were to be operating by the end of the year with full production by the end of 2002. "Due to various resource management consent issues relating to the proposed development of the processing facilities, it has become necessary to acquire the property the subject of this application."
W.F. Pate of the U.S.A. has approval to acquire 59 hectares of land at Matakitaki Road, Murchison, Nelson for $67,500. The vendor, Peter Grant Badcock, acts as trustee and manager for Pate. Ten hectares are already planted in Pinus Radiata seedlings. The remaining land, which is unproductive scrub, will be planted in the same way.
CDL Land New Zealand Ltd of Singapore has approval to acquire two blocks of land at Browns Bay, Auckland that will be subdivided into "more than 118 residential sections" over the next three years. The two blocks are
· 4.1 hectares at 1004A East
Coast Bays Road;
The prices of both have been suppressed.
The OIC records CDL Land as being owned 59.3% in New Zealand, 21.1% by the Hong Leong Group of Singapore, and 19.5% by other shareholders in Singapore. However the annual report of CDL Hotels New Zealand Ltd records CDL Land as being a 100% subsidiary of CDL Investments New Zealand Ltd, itself a 58.43% subsidiary of CDL Hotels New Zealand Ltd. CDL Hotels New Zealand Ltd owns the largest hotel chain in Aotearoa and its largest shareholder is Millennium and Copthorne Plc, a 52.4% subsidiary of CDL Hotels International Ltd, which is the Hong Leong Groups principal hotel investment company.
Humlegaarden Ltd, owned by Dr Finn Scott Andersen of Denmark, has approval to acquire 15 hectares at Highden Manor, Green Road, Palmerton North, Manawatu for $1,462,500. "Dr Andersen operates a complementary cancer care and educational facility in Denmark. Dr Andersen intends to establish a similar type of operation in New Zealand offering health care services of a hospice/complementary cancer care nature." It will also include an "education centre" and is modelled on his Denmark operations, which he has run since 1979.
Waihi Gold Company Nominees Ltd has approval to acquire two more blocks of land in Waihi, Coromandel as a buffer to the extension of its mine. They are· 0.10 hectares at 12 Selvin Street, Waihi for $110,216;
· 1.30 hectares at 20 Grey Street, Waihi for $275,150.
Waihi Gold is owned 67.06% by Normandy Mining Ltd, listed in Australia, and 32.94% by AUAG Resources Limited. The OIC shows the AUAG ownership as exactly half each Australian and New Zealand public. The last such acquisition was in March 2000.
Blake Family Vineyard Ltd owned by Mark Blake of the U.S.A. has approval to acquire 9.8 hectares at Irongate Vineyard, Gimblett Road, Hawkes Bay for $1,350,000 from Hastings Vineyard Ltd.
Blake intends to
Blake also hopes to export the wine.
The purchase of the 6,334 hectare Poronui Station (now "Poronui Ranch") from Carter Holt Harvey for $7,000,000 was approved by the OIC in June 1998 (see our commentary for that month). It was purchased through Poronui Station Ltd, owned by Mark Christopher Blake (56%), Wendy Margarete Blake (33%) and Todd Austin Blake (11%), all residents of San Francisco. The station had been used for commercial deer hunting and trout fishing operations, and local anglers were upset at the purchase.
Lilybank New Zealand Ltd (formerly NZ Trophy Guide Service Ltd) owned by L.Y.A. Poh of Singapore, which owns the controversial Lilybank Station, has approval to acquire a second farm in Central Otago. The new acquisition is the 164 hectare "Sunnyvale", at State Highway 8, Ettrick/Raes Junction, Millers Flat, at a price of $675,000. In February 2000, Poh received approval to acquire the 279 hectare Willows deer farm in the same location. The OIC says that
Poh reportedly bought Tommy Suhartos (Hutomo Mandala Putra) 95% share of Lilybank for $1 in September 1999, though Suharto was still the registered owner of the shares at October 2000.
Telecom New Zealand Ltd has approval to acquire a 0.0052 hectare leasehold at Oneroa, Waiheke Island, Auckland for a suppressed amount, in order to expand its cellular network on the island.
Telecom is recorded as being 70.05% overseas owned, including 24.94% by Bell Atlantic Holdings Ltd of the U.S.A., which have announced that they were selling out, and 6.45% by The Capital Group Companies Inc of the U.S.A. In all, the shareholding is made up as follows:
· 24.94% Bell Atlantic Holdings
So at least 47.39% is owned in the U.S.A., 29.95% in Aotearoa, 10% in the U.K. and 7% in Australia.