April
2001 decisions
Fosters Brewing buys
Matua wines group SK Foods International of the U.S.A. takes control of Cedenco
Foods Approval for SEA Holdings (Hong Kong) to buy remainder of Trans
Tasman Canterbury Meat Packers Ltd to establish meat works in Greatford,
Manawatu… … and Eddie Tonks and Rangatira sell out of ANZCO Foods P & O buys Eskimo’s coldstore business Korean company buys 14 hectares for sawmill at Ruakaka, Northland Southland Plantation of Japan buys more land for eucalypts U.K. interests buy Aroha Hills, Manawatu, for deer farming Hong Kong investor buys two Hastings properties for vineyards Australian lease-back Delegat’s of viticultural assets in Hawkes
Bay McCain Foods of Canada buys Hastings land to expand processing
plant German buys second Waitomo station Fosters Brewing buys Matua wines groupIn yet another overseas purchase of a significant wine making group (following Montana, Corbans, and Nobilo), Beringer Blass Wine Estates Ltd, owned by Fosters Brewing Group Ltd of Australia, has approval to acquire up to 100% of Matua Valley Wines Ltd and Waikoukou Vineyards Ltd (known as the Matua Group) for $9,582,615 for 51%. The purchase includes 153 hectares of land made up of · 106 hectares in the Gisborne/Hastings/Hawkes Bay area · 32 hectares at Waikoukou Valley Road, Kumeu, Northland; and · 15 hectares at Rapaura Road, Blenheim, Marlborough. Matua was previously 100% New Zealand owned, as follows: ·
47.5% - Margan Family Trust ·
23.75% - Ross Spence Family Trust ·
23.75% - William Spence Family Trust ·
5% - Mark Robertson and Jane Osborne It is part of Fosters’ desire “to expand globally and to geographically diversify its earnings stream”. Fosters and Lion Nathan are the main competitors for the static beer market in Australia, and branching out into wines is one of their strategies for profit growth. Fosters was reportedly also interested in Montana. The sale was reportedly for $11.2 million. Beringer Blass managing director, Terry Davis, speaking from Melbourne, said that he expected the deal to lead to “other premium New Zealand wineries asking to join his portfolio” (read: being taken over) and “for more landowners to become grape suppliers. New Zealand’s wine industry was likely to mimic the Australian consolidation pattern, which saw labels disappear as producers merged, and an increase in growers.” In other words, New Zealand wine-making is being brought to the end of its innovative promise, and will become largely grape-farmers supplying grapes to large overseas owned wine-makers. Those transnationals may well send the grapes to another of their wineries in Australia, France or the U.S., for blending. The experience of crop-farmers who have to take prices from a few large suppliers is destined to be repeated (Press, 4/04/01, “Aust beer giant moves into NZ premium wines”, p.19). SK Foods International of the U.S.A. takes control of Cedenco FoodsSK Foods International, owned by Frederick Scott Salyer of the U.S.A. has approval to take up to 100% of Cedenco Foods Ltd. However in fact it bought only 54.78% for $12,471,892. The shares came from Brierley Investments Ltd (48.53% according to Datex) and The Proprietors of Mangatu Blocks, a Maori trust, through Mangatu Investments Ltd (6.24%). The OIC states that SK Foods is “a major fruit and vegetable processing company in the United States. The proposed acquisition is the Applicant’s first investment in New Zealand. The proposal results from a desire to diversify the Applicant’s overall business mix and further expand its presence in the international place.” [sic] News reports describe California-based SK Foods as “one of the largest tomato processors in the USA”. Once again there were concerns that smaller shareholders missed out on the $1.52 per share offer, which came before a new takeovers code came into force on 1/7/01. In 1996, amid considerable controversy, Cedenco moved its entire tomato growing and processing operations to Australia, attracted by government incentives. It established a joint venture with a major customer, Cerebos Australia, and entered into a four-year supply agreement with Cerebos and Simplot. Cedenco still owns 50% of the Australian company. Cedenco owns · 7.4 hectares of freehold at Innes Street, Gisborne; and · 65 hectares of leasehold at State Highway 38, Frasertown and Awamate Road, Wairoa, Hawkes Bay. Approval for SEA Holdings (Hong Kong) to buy remainder of Trans TasmanSEA Holdings New Zealand Ltd (formerly SEABIL (NZ) Holdings Ltd), which is owned 100% by SEA Holdings Ltd of Hong Kong, has approval to acquire 100% of Trans Tasman Properties Ltd for a sum “to be advised”. However the deal didn’t go through. SEA had proposed a capital reconstruction in February 2001 under which other shareholders and convertible note holders were offered 10% secured bonds in exchange for their interests. Shareholders voted against plan although convertible note holders accepted the offer. Minority shareholders had been unhappy with their lot because the company, under SEA’s dominance, has had a zero-dividend policy since 1998. As the OIC puts it: In this ... application Trans Tasman Properties Limited (“TTP”) seeks on behalf of the Applicant for consent to allow the Applicant to increase its shareholding in TTP via a notes conversion by shareholders in TTP, essentially equivalent to a buy-back. TTP intends to undertake a High Court ordered scheme of arrangement, which if successful, will result in SEA NZ owning 100% of its ordinary shares. This arrangement involves the cancellation by Court order of all the ordinary shares in TTP, other than those already owned by SEA. In return, these shareholders will be offered long term fixed rate bonds without any equity entitlements. The Application to the Court will propose that the Arrangement must be approved by 75% or more of the votes cast at a special meeting of the shareholders. The proposal will provide TTP’s shareholders (other than SEA) with the opportunity to have access to a return on their investment which is currently not available to them given TTP’s zero dividend policy. This policy has caused concern for many of the shareholders, other than SEA. Trans Tasman is the largest listed property investor in New Zealand, and also has substantial investments in Australia. It was the result of a merger in 1995 of Tasman Properties Ltd (formerly Robert Jones Investments) and SEABIL (NZ) Ltd, a joint venture of Brierley In-vestments Ltd (30%) and S.E.A. Holdings (70%) of Hong Kong. Since then, the company has had an erratic performance, and Brierley Investments has withdrawn. While SEA Holdings received OIC approval to acquire up to 60% of Trans Tasman in December 1998 (see our commentary in that month), it currently owns only 54.79% according to Datex. Trans Tasman’s properties include the eight hectare Fletcher Challenge complex at Great South Road, Auckland, and the 0.7 hectare Finance Centre at the corners of Queen, Albert, Durham and Victoria Streets, Auckland. Its other shareholders include a 6.32% holding in the U.S.A., giving a total overseas ownership of 61.119% according to the OIC. Canterbury Meat Packers Ltd to establish meat works in Greatford, Manawatu…Canterbury Meat Packers, which is 50.072% owned in Japan, has approval to acquire a further 174 hectares of land at State Highway 1, Greatford, near Marton, Manawatu, in order to “develop and extend the Applicant’s business with the construction of a third meat processing facility. The plant will be hi-tec and include the latest slaughtering, cutting and environmental technologies accessed from around the world.” Canterbury Meat Packers already owns processing plants in Ashburton and Blenheim. The company is owned 20% by Phoenix Meat Co Ltd of Aotearoa, and 80% by Asian New Zealand Meat Company Limited, a subsidiary of ANZCO Foods Ltd (formerly JANZ Investments Ltd). See the next decision for details. In 1995 Canterbury Meat Packers bought the Seafield assets of the bankrupt Fortex Group Ltd. At that time, Canterbury Meat Packers Ltd was 50% owned by Phoenix Meat Company Ltd of Aotearoa, and 50% owned by Five Star Beef Holdings Ltd. Five Star in turn was 50% owned by Anzco Developments Ltd of Aotearoa and 50% by Itoham Foods Inc of Japan (see our commentary on the January 1995 decisions for further details). … and Eddie Tonks and Rangatira sell out of ANZCO FoodsNippon Suisan Kaisha Ltd (Nissui) of Japan has approval to acquire up to 29.19% of Anzco Foods Ltd for a suppressed amount. In February 2001, ANZCO was owned as follows (according to the New Zealand Companies Office): Japan:
Aotearoa
Eddie Tonks and Romney No 19 Ltd want to sell up. Nissui and members of Anzco management (including Graeme Harrison) are buying their shares. From the above figures it is unclear how Nissui will get its 29.19%, but the OIC states that Anzco will be 78.41% overseas owned after the shares are sold. In May 1997, JANZ Investments Ltd (now called Anzco Foods) received OIC approval to acquire up to 89.88% of New Zealand Casing Company Ltd for a suppressed amount. It included assets in South Auckland and Southland. New Zealand Casing is the world’s largest natural sausage casing company, with 700 employees, $230 million turnover and casing processing and marketing operations in Aotearoa, Australia, Japan, Canada, the U.S.A., Mexico, Britain and Germany. It was owned 60% by the family of Eddie Tonks, the former chairman of the New Zealand Rugby Football Union. The remainder was owned 29% by investment company Rangatira, in which Tonks is also a shareholder, and about 10% by directors and senior executives of the company. It also owns 75% of Crown Meat Export, the other 25% being owned by Crown senior management. Tonks is a director of ANZCO. (Ref: Listener, 15/3/97, “The casing king”, pp.30-33; Press, 13/6/97, “Anzco forges links with world’s biggest sausage casing firm”, p.14.) P & O buys Eskimo’s coldstore businessP & O Logistics (NZ) Ltd, owned by The Peninsula & Oriental Steam Navigation Company of the U.K. has approval to acquire the coldstore business of Eskimo Logistics Group Ltd for a suppressed amount. The acquisition includes one hectare at Port of Tauranga, Bay of Plenty, and two hectares at 11 Smarts Road, Hornby, Christchurch. According to the OIC, [P & O] wishes to expand its existing refrigerated warehousing and distribution services that it provides to local food retailers and manufacturers. The acquisition of Eskimo’s coldstore logistics business will fit well into the existing business of the Applicant. It will enable it to provide greater services and expanded capacity to its customers. The acquisition will provide the Applicant with facilities in areas not currently covered by it. The business, which will increase P & O’s turnover by 250%, handles $2 billion worth of the food industry’s products annually and consists of eight distribution centres including Auckland, Tauranga, Christchurch, and Bluff. It employs 300 staff. Eskimo will continue to run its international freight forwarding business (Press, 19/5/01, “Eskimo selling”, p.24). According to the Commerce Commission, which approved the acquisition (Decision 418, 16/2/01), “Eskimo was established by the Greenstone Fund, an investment company, as a venture capital project in 1994. The goal was to quickly build the company and then either sell it or float it on the stock market. Many industry participants view Eskimo as a maverick in the industry. Since entering the market, it has aggressively acquired market share and now has turnover of around [suppressed].” It says
that Eskimo is “involved in the provision of distribution and logistics
services to suppliers of perishable goods. This includes the provision of
refrigerated warehouses and ancillary services. Eskimo has generally focused
its business on primary producers and wholesalers (essentially for meat,
fish, dairy and horticultural products), although in recent years it has
acquired some retail and manufactured goods contracts.” Eskimo
claims to be “one of New Zealand’s largest perishable products logistics
groups”, while, again according to the Commerce Commission, “P&O entered
the New Zealand market in 1987. Since entering, it has grown at a reasonably
quick rate and is now one of the biggest players in the industry.” This is
therefore a consolidation of two of the biggest groups in the market. Eskimo, according to the OIC is owned as follows: · 50.6411% - New Zealand, New Zealand Public · 22.0702% - Australia, Australian Public · 10.872% - New Zealand, The Crown · 10.872% - New Zealand, NPF Equities Limited · 5.5447% - France, AXA However, interestingly, there is no “Eskimo Logistics Group Ltd” registered in New Zealand according to the New Zealand Companies Office. There is however an ELG Holdings Ltd, which is owned 54.4% by the Greenstone Fund, 26.5% by Frozen Foods Investments Ltd (owned by AMP Life Ltd), and the remainder by seven smaller shareholders. Korean company buys 14 hectares for sawmill at Ruakaka, NorthlandNZ Green Pine Ltd, owned by Oue Nam Kang of South Korea, has approval to acquire two blocks of land – one of 6.8 hectares for $247,500 and the other of 7.5 hectares for $213,750 – at Marsden Point Road, Ruakaka, Whangarei, Northland. The land will be used to build a sawmill, which may later be extended to manufacture furniture. Is this that rare occurrence – real added value processing of timber before it is shipped out? We’re told we’ll have to wait and see: The material produced at the site will act as a supply base for the Applicant’s Korean sawmill operation, Sungil Timber. The material that will be processed at the site is to be supplied by local forest industry organisations. Sungil Timber is a sawmill processing timber and supply base for the construction and furniture markets in Korea. In order to support the business growth by sourcing raw material, the Applicant has decided to establish the sawmilling operation. The Applicant has outlined the three stages of processing that are to be carried out on the site. The first stage involves the cutting of material wood into square bars or balks, followed by the planing or shaving on the surface of the balks. The final stage is manufacturing furniture from the processed timber. It is envisaged that in the first year the proposed sawmill would be primarily responsible for the cutting of timber into balks. After this first year, the Applicant will look at extending the mills operations to include the two other stages. Overall, the aim is to secure a stable material wood supply for Sungil Timber and to increase the exported processed timber from New Zealand to the Asian markets using the Applicant’s existing business contacts. Southland Plantation of Japan buys more land for eucalyptsSouthland Plantation Forest Company of New Zealand Ltd, ultimately 51% owned by New Oji Paper Company Ltd, 30% by Itochu Ltd, 10% by Fuji Xerox Co. Ltd, and 9% by Fuji Xerox Office Supply Company Ltd, all of Japan, has approval to buy 380 hectares of land at Wilanda Downs Road, Southland for $1,237,500 for forestry. It is currently used for sheep, beef and cattle grazing. As usual with its purchases, all forestry activities will be conducted under contract by South Wood Export Ltd of Japan. The last such purchase was in February 2001. According to the OIC, SPFL’s proposals since the middle of 2000 have indicated a long-term plan to establish 14,400 hectares of Eucalyptus Niten plantation, with a 12 to 15 year rotation. This area is 0.45% of the total land area in Southland (or 0.9% of the land 100 kms from Bluff). They aim to plant approximately 1,200 hectares each year. Since 1992, SPFL has developed 8,800 hectares of Eucalyptus Niten plantation. This has been the subject of considerable controversy amongst local communities, particularly in the Catlins area. One community group, the “Sustainability of Rural New Zealand Group”, commissioned a report on the economic effects of converting farmland to short-rotation eucalypts for wood-chipping. This research was carried out by the Agribusiness and Economics Research Unit (AERU) of Lincoln University, and completed in July 2000[1]. The report is remarkable and unique in that it sets out in a rigorous way to evaluate overseas investments approved by the OIC according to the OIC’s own criteria. Its finding is that the national interest criteria in these Southland Plantation acquisitions are not met. The OIC, both in its decisions, and in evidence to the Finance and Expenditure Committee of Parliament, claims with scant evidence that there is a net national benefit. The AERU report effectively throws into doubt the claims of the OIC that “national interest” criteria have been met in many other decisions. Green MP, Rod Donald, on the basis of this and other material, has requested a performance audit of the OIC by the Auditor General. The AERU report’s summary of the situation is as follows: This report compares employment and value-added for farming and short rotation forestry in the Catlins region. Total economic effects are calculated for each land use for the Southland region as a whole. Economic impacts measured by employment (full time equivalents – FTEs) and value-added are calculated on a per 000 hectare basis and for the total area affected by the land use change. The results are assessed in terms of validity, the land uses are compared and discussed, then the results are interpreted in terms of the Overseas Investment Commission. For all the land converted to date, and taking the forest to be in production, the main points are that: · Conversion of land from farming to short rotation forestry results in a decrease from 50 jobs to 37 jobs overall and a change from a value-added of $2.3 million to $3.3 million per year. · There is a decrease in on-land employment from 22 FTEs to 6 FTEs or a loss of 16 FTEs. Since logging has not yet occurred the actual loss of employment until tree maturity at 15 years is 19 FTEs. · Value-added retained in New Zealand is of the order of $2,265,500 for farming and $2,410,000 for forestry. · The loss in jobs in rural areas can have a significant social impact – while the absolute number appears to be small it is a significant proportion of the rural population. · Using more favourable key assumptions for forestry does not alter the main conclusions of this report. · Some of the OIC investment criteria for foreign investment are being met but in sum they show that overseas investment does not significantly contribute to the national interest especially when considering the net effect of the changes. · Forestry investments in the Catlins region are neither creating new job opportunities nor significantly improving the value-added resulting from forestry land use. It is clear from this analysis why Southland Plantation is continually expanding its forests. Though employment is greatly reduced, the “value-added” is greatly increased compared to farming – from $2.3 million to $3.3 million per year for the 2,435 hectares studied. To Southland Plantation, financial returns are more important than jobs or effects on rural communities. Though not all of the value-added flows to the owners of the land – for example for farming some goes to the meat works – in the case of forestry, if the owners of the land also own the chip mill, more of the value added goes to them; and if chip prices rise, all the extra profit goes to them. But further, the report notes (see the third bullet point above) that only $2.4 million of the $3.3 million value-added stays in Aotearoa for forestry, whereas virtually all stays in the country for farming. The remaining $0.9 million goes as profits to the overseas owners each year. U.K. interests buy Aroha Hills, Manawatu, for deer farmingTrustees of J O Adams & Sons Ltd Pension Fund of the U.K. have approval to acquire Aroha Hills which is on 123 hectares at Pukenaua Road, Taihape, Manawatu, from Trustees of the Hunt No 2 Trust of Aotearoa for $881,047. The property is used for deer farming and forestry. The OIC says: The Applicants have been in the farming industry as owners for the past 25 years and this acquisition provides them with an opportunity to diversify their existing farm interests in the United Kingdom, particularly as farming in the United Kingdom is under threat of infectious contagious diseases. The Applicants have also been involved in importing deer velvet products from Aroha Hills to the United Kingdom. The Applicant currently markets products derived from the property through a company, Velvet Energy Limited. The Applicant believes that the ability to source such products from this farm in New Zealand will enable them to control the quality of the product and possibly provide a competitive advantage over similar United Kingdom companies. The proposal also involves the Applicant – through the act of purchasing of the property – providing the Vendor with the necessary capital to develop their company Venmark Limited (“Venmark”). Venmark is a franchiser involved in the branding of venison products. The capital that will be available through the sale of Aroha Hills will allow the Vendor to increase the export of venison products to primarily the United Kingdom. Post acquisition, the farm will continue to be the source of produce for sale in future franchise outlets. Hong Kong investor buys two Hastings properties for vineyardsGary Alan Fisher of Hong Kong has approval to acquire two properties in Maraekakaho Road, Hastings for development into a commercial vineyard and winery operation. The two blocks are · 45 hectares for $1,575,000; and ·
22 hectares for $832,750. Local expertise will be used according to the OIC: Allan Clarke has been retained to assist in selecting the best available land for the vineyard development. After development of the vineyard has been completed, Mr Clarke will continue in his role as advisor to the management of the vineyard, assisting in the strategic planning, the selection of appropriate vine and rootstocks, vineyard management and the hiring of vineyard and winery staff. This will enable the Applicant to become a premium wine producer in the Hawke’s Bay area. The Applicant’s key interest is in the production of high quality red wine to export, based on the major Bordeaux varieties Cabernet Sauvignon, Merlot, Malbec and Cabernet Franc. Australian lease-back Delegat’s of viticultural assets in Hawkes BayBeston Delegat’s Wine Trust of Australia, has approval to acquire the business assets, including 406 hectares of land in Hawkes Bay, of Delegat’s Wine Estate Ltd owned by J and R Delegat of Aotearoa, and lease it back to them. The price is $8,620,000. It is effectively a means of cheap finance according to the OIC: The Applicant [Beston Delegat’s] was established to capitalise on the growth taking place in the Australian wine industry and to provide funding for the infrastructure requirements of the industry. The Applicant is in effect a cost effective funding vehicle for wine companies. The proposal is the Applicant’s first investment in New Zealand. The Applicant proposes to acquire the viticultural assets of Delegat’s Wines and then lease them back to the vendor. In essence the transaction is a funding transaction which will enable Delegat’s to free up capital so that it can be invested in further developing its viticultural business. Delegat’s have advised that it investigated obtaining funding through New Zealand’s trading banks and also leasing companies. However, none of them would lend on terms comparable to those offered by the Applicant. The proposal will enable Delegat’s to plant a further 284 hectares of land in vines and also to construct a winery. The land involved is: ·
23 hectares at
Gimblett Road, Hawkes Bay ·
22 hectares at State
Highway 50, Hawkes Bay ·
361 hectares at 1370
Matapiro Road, Crownthorpe, Hawkes Bay McCain Foods of Canada buys Hastings land to expand processing plantMcCain Foods (NZ) Ltd, owned by the McCain family of Canada, has approval to acquire six hectares of land at Omahu Road, Hastings, Hawkes Bay for $450,000 from Elmorvia Holdings Ltd of Aotearoa. It adjoins a McCain Foods processing plant, and is being acquired to expand the plant and to build a freezer warehouse. German buys second Waitomo stationAwakino Fortune Ltd, owned by Karl-Heinz Reipen of Germany has approval to acquire the 218 hectare Awakino Heads station, Fraser Smith Road, Waitomo District, Waikato for $1,125,000 from Arctos Corporation Ltd of Aotearoa. In October 2000 Reipen gained approval to acquire the 1,105 hectare Pioi Station in the same location for $1,462,499. The OIC states: The acquisition will strengthen the viability of the adjoining property, Pioi Station … The acquisition of Awakino Heads will improve access to Pioi Station. Currently, access to Pioi Station is by way of access across Awakino Heads. It is intended, post acquisition that the two properties will be run as one unit. It is likely the additional land will enhance the productivity of the Awakino Station property through the extension of a sheep cross breeding and cattle breeding programmes on Pioi Station and Awakino Heads. The Applicant also proposes to establish an eco-tourism venture on the combined property, which will be run in conjunction with the sheep and cattle farming enterprises. It is because of such developments to the total land area, that the Applicant sought secure access to both properties. The Vendor states that “Awakino Heads” is uneconomic by itself, with a grassed area of 110 hectares. It has perceived drawbacks for local purchasers, specifically, the lack of road access. Road access is through a road tunnel, which precludes large stock trucks from entering the property. Stock need to be walked out to Fraser Smith Road to be loaded in larger numbers. The Applicant intends to upgrade this access which is likely to increase the economic viability of the property. When approving the purchase of Pioi Station, the OIC stated that Reipen intended to establish “sheep cross breeding and cattle breeding programmes” on the farm. He also proposed to establish an “eco-tourism venture” which “will utilise the remote and isolated aspects of the property – with its unspoilt coastal shoreline, native bush and natural topography. The venture will include the development of accommodation facilities, horse trekking, quad biking, tramping expeditions and trophy photography and hunting of deer, pigs and goats.” Other rural land sales· Clive Richard Needham of the U.K. has approval to acquire the 205 hectare Glenlea property at Glenlea Downs, 432 Scotsmans Valley Road, Tauwhare, Hamilton, Waikato for $3,375,000. “The Applicant and his wife and son propose to seek and take up New Zealand residency and live on the property known as ‘Glenlea’. The Applicant intends to further develop the property which will require the introduction of significant development capital. The Applicant’s extensive farming experience and financial resources are likely to enhance the present farm operations. The Applicant also plans to establish pedigree cattle breeding operation on the property, with the ultimate view of increasing productivity and product quality.” · Ingrid Jaeger of Germany has approval to acquire a one-third interest in 3.8 hectares of land at 230 Matapaua Bay Road, Matapaua Bay, Coromandel for $150,000 from her brother, Bernd Jaeger of Germany. According to the OIC, In 1992 the Applicant her partner and her brother, all of whom are overseas persons, each acquired an undivided one third interest in the property at Matapaua Bay Road. The purchase received approval under the Land Settlement Promotion and Land Acquisition Act 1952. The property was purchased as a holiday home. The acquisition did not require consent under the Overseas Investment Regulations 1985, as it did not involve “a business carried on, or involving the use of rural land”. Ms Jaeger has made some developmental improvements to the property with a view of establishing a homestay operation. These include the introduction of an imported wood fired pizza oven and the erection of a feature stone wall and fountain. Ms Jaeger intends to further extend the property to accommodate the homestay guests. It is also proposed to establish bush walks through the native bush that has been preserved on the property. The Applicant and her partner intend to take permanent residency in New Zealand following the retirement of the Applicant’s partner in two to three years and at that time will reside on the property. · Hans Dietech Thomas Pape and Birgit Vocking of Germany have approval to acquire 6.8 hectares of land at Whangamata Road, Kinloch, Taupo, Bay of Plenty for $174, 375. Says the OIC: The Applicants intend to acquire the property to utilise as a residence once they have attained and taken up New Zealand permanent residency in 12 months. The Applicants intend to undertake significant developments on the property to convert it from its present condition as solely a lifestyle block into an investment property. The property is intended to become a base for the Applicants wine export business and ultimately build chalet accommodation for overseas tourists. · R.J. and S.M. Bateman of the U.K. have approval to acquire 55 hectares of land at Corbetts Road, Seafield, Ashburton, Canterbury for $400,000. “The property, which has been on the market for approximately five years, is extremely run down and unproductive. The Applicants intend to establish an intensive crop farming operation on the property. The Applicant proposes to install an irrigation system and to institute an intensive fertiliser and weed control programme. This will assist in returning the property to a productive unit.” · Gary Michael Levinsohn of the U.S.A. has approval to acquire two of the blocks being sold from Closeburn Station on the Glenorchy-Queenstown Road, Queenstown, Otago. The station is owned by J. F. Investments Ltd, which is 70% owned by David Salman of Indonesia and 30% by D. Broomfield of Aotearoa. They are subdividing nine hectares of the station as “lifestyle properties” into 27 residential allotments, each of which will have a share of the remaining approximately 999 hectares which will still be farmed (see our commentary on the July 1998 decisions for details). J F Investments “intends to directly invest approximately $5.5 million into the development and improvement of the farming activity” on the station, which will come from the sale prices of the residential lots. The present sale is of 0.6688 hectares plus a 1/27th share of the remaining station (37 hectares), for $1,462,500. The land adjoins Lake Wakatipu and conservation land. “Mr Levinsohn is a financier and producer of motion pictures. With the growth of the New Zealand film industry, Mr Levinsohn states that it is his desire to produce films entirely from New Zealand, and to make ‘Closeburn Station’ his residence for much of the year. The two lots being purchased by Mr Levinsohn are neighbouring lots. It is Mr Levinsohn’s intention to commence construction of a dwelling on the property within one year.” Levinsohn was one of the producers of “Saving Private Ryan”. ·
H M J de Bruyn and A J de Bruyn-Oomen of the Netherlands
have approval to acquire TDP Ltd which owns 219 hectares at Limehills
Browns Road, near Winton, Southland, for $3,476,475. “The
Applicants, who carry on a genetic dairy-cattle breeding business in the
Netherlands are in the process of liquidating their Netherland assets with
the intention of immigrating to New Zealand.
The acquisition of the shares in TDP Limited is the first step in that
process. They propose to continue to
operate their genetic dairy cattle breeding business on the land owned by TDP
Limited. Their proposed business
operation will be based on the existing breeding operations of the
vendors. In addition the Applicants
intend to expand those operations through the introduction of the technical
expertise that they have developed in the Netherlands.” |
