December 2004 decisionsMacquarie buys neighbouring office block in Greenlane, Auckland Tiongs’ Neil Construction buys land in Tauranga for subdivision Joint venture with US company plans Napier subdivision Roger Dickie organises two more sales of forestry blocks AMP takes half share in Papamoa Retirement Village joint venture Retrospective consents for land purchases by a no longer overseas company Southland Plantation Forest Co of Japan buying more land after long break One refusalTakeshi Okamura of Japan has been refused approval to acquire 25 hectares at 3186 Horeke Road, Kaikohe, Northland for $225,000 from Peter William Beer and Doreen Duncan Beer of Aotearoa.
According to the OIC,
The Applicant is a Japanese citizen who has been engaged in organic farming in Japan on a hobby rather than a commercial basis. The Applicant proposes to acquire the subject property which is currently utilised predominantly for beef farming, to establish an organic vegetable and plum tree operation on the property and continue the beef farming. It is planned that the Applicant will supply individual families and restaurants with a weekly service delivery of organic fresh vegetables on a subscription contract basis in the local and Auckland markets.
The Commission is not satisfied that the proposal is in the national interest as the acquisition of the subject property is unlikely to result in substantial and identifiable benefits to New Zealand or to a region, district, locality, or other part of New Zealand. [Decision number 200420087.] Macquarie buys neighbouring office block in Greenlane, AucklandMacquarie Goodman Nominee (NZ) Limited as nominee for Macquarie Goodman Industrial Trust and Macquarie Goodman Property Trust, owned 60% in Australia, and 40% in Aotearoa, has approval to acquire 0.31 hectares at 606-612 Great South Road, Greenlane, Auckland for $3,100,000 from Barjon Investments Limited owned 33.4% by Jonathan Hislop, 33.3% by Barry Wither and 33.3% by Alfred McCollam, all of Aotearoa.
According to the OIC,
The Applicant (co-owned by the Macquarie Goodman Industrial Trust and the Macquarie Goodman Property Trust), proposes to acquire the subject property which is utilised as offices, with one of the three sites vacant. The sale and purchase agreement is conditional on the obtaining of resource consent for the development of an office building on the property. The Applicant advises that the acquisition provides it with an opportunity to expand its existing Millennium Business Centre which adjoins the property and is integral in building the Applicant’s property development book to ensure that they have the solutions available to accommodate the future space requirements of existing and prospective customers in Auckland. [Decision number 200420092.] Tiongs’ Neil Construction buys land in Tauranga for subdivisionNeil Construction Limited, owned by the Tiong Family of Malaysia, has approval to acquire 12.8 hectares at 19 Cheyne Street, Tauranga, Bay of Plenty for $6,952,500 from Adrienne Barbara Coad, Anthony Fairfax Carlyle, and Margaret Joan Mabey of Aotearoa.
According to the OIC,
The Applicant proposes to acquire the subject property to add it to the company’s portfolio of land for residential subdivision. The property which is zoned Residential A under the Tauranga District Council’s Operative District Plan is currently utilised by the vendors to grow avocados, kiwifruit and nashi pears with a portion used for grazing. The property adjoins existing residential development of the Pyes Pa suburb of Tauranga, and is located near a 29.0042 hectare property previously acquired by the Applicant.
The Applicant proposes to undertake a residential subdivision development which will provide sections to assist in meeting the ever increasing demand for residential lots in the Tauranga region. It is expected that the development of the property will result in 132 residential sites. The development will be undertaken in three or four stages commencing in the late 2005.
The purchase of the land previously acquired in Pyes Pa was approved in August 2003, and is in Cheyne Road. See our commentary for that month for further details. Neil Construction’s last purchase was in April 2004, and unusually for Neil Construction, was for commercial office development. See our commentary for that month for further details. [Decision number 200420081.] Joint venture with US company plans Napier subdivisionRobert Swanson Morey and Te Awa Estates Limited, owned 50% by Robert Swanson Morey and Timothy Clark Morey of the U.S.A. and 50% by Te Awa Estates Limited owned by Adam Horvath of Aotearoa, has approval to acquire three blocks of land at Kenny Road, Eriksen Road, and Te Awa Avenue, Napier, Hawkes Bay for subdivision.
They are:
· 29.6 hectares for $1,068,750 from Associated Grain Dryers Limited of Aotearoa [Decision number 200420088]; · 4.6 hectares for $1,033,990 from Raewyn Irene Lawrence and Richard De Val Lawrence of Aotearoa [Decision number 200420089]; and · 3.2 hectares for $306,382 from Andrew Mark Friedlander of Aotearoa [Decision number 200420090].
According to the OIC,
It is proposed that Te Awa Estates Limited, a company which is owned and controlled by Adam Horvath, a New Zealand citizen, will undertake a residential subdivision on the subject properties and sell sections to home construction companies. The overall development is likely to comprise up to 600 residential sections. The subdivision infrastructure and house construction is likely to be completed over a 12 year timeframe. The acquisition of the land by Te Awa Estates Limited has been funded by loans secured by a mortgage from Mr Morey. Roger Dickie organises two more sales of forestry blocksAugusta Forest Partnership has approval to acquire two blocks of land for forestry: · 272 hectares at State Highway 2, Waikoau Stream, Hawkes Bay for $528,942 from Richard Bond Nesbitt, Graham Mitchell Cowley and John Guy Kinsford Reed of Aotearoa [Decision number 200420073]; and · 97 hectares at Creek Road, Wanganui for $328,972 from HDL Limited of New Zealand [Decision number 200420074].
These are sales organised by Roger Dickie. The approvals appear to be retrospective. We reported another sale at Creek Road from HDL Ltd via Dickie in the November 2004 decisions. In September 2004, he organised a sale near Young Nick’s Head to a consortium involving one of the individuals involved in the Augusta partnership, and one previous to that in April 2004 (see our commentaries for those months for further details).
Augusta Forest Partnership is owned as follows: · 11% - Dave Boudwin, U.S.A. · 10% - Michael Brumley, U.S.A. · 4% - Maximilian Steinhauser, Germany · 4% - Christine Mullner, Germany · 3% - David MacMillian and Liv MacMillian, U.K. · 1% - Claude Christiano, U.S.A. · 67% - Aotearoa
The OIC states:
The overseas participants in the Augusta Forest Partnership are investing with New Zealand investors in an intensively managed plantation forestry operation. The operation comprises two properties totalling 369.1737 hectares being 271.9 hectares of farm land located 40 km north of Napier (the land the subject of this application) and 97.2737 hectares being part of the Mangamahu forest east of Wanganui which was planted in 1994.
While New Zealand has the fastest growing plantation forests in the world, there is a limited amount of investment capital available in New Zealand to expand those plantation forests. Roger Dickie (NZ) Limited, the promoter of the Augusta Forest Partnership, promoted the partnership widely to New Zealanders by way of the offer of Participatory Securities in the Partnership under a registered prospectus and investment statement dated 12 December 2002. However, in order for the Participatory Securities to be fully subscribed, the participation of overseas investors was necessary.
The forestry operation is managed by Forest Management New Zealand Limited, a New Zealand company which is owned by Roger Dickie, with over 25,000 hectares of forest under its management. AMP takes half share in Papamoa Retirement Village joint venturePapamoa Retirement Village joint venture has approval to acquire 8.3 hectares at Parton Road, Papamoa, Bay of Plenty for $3,234,375 from Vision (Papamoa) No. 2 Limited owned by Vision Senior Living Limited of Aotearoa.
The Papamoa Retirement Village joint venture is 50% owned by two members of the AMP group, and 50% by Vision Senior Living Limited of Aotearoa. However the OIC describes the AMP share as 31.8645% in Aotearoa and 18.1355% in Australia.
The OIC states:
The AMP Property Opportunity Fund Limited (AMP Property), operates in conjunction with a New Zealand owned charitable organisation, the AMP Property Opportunity Charitable Fund Limited (AMP Charitable), in property development and trading investment. AMP Property (as to an 82% share) and AMP Charitable (as to an 18% share) propose to enter into an unincorporated joint venture agreement with the Vision Senior Living Limited (VSSL) to develop and manage a retirement village in Papamoa. As part of the joint venture agreement, AMP Property and AMP Charitable will acquire a 50% interest in the subject property.
The vendor of the property is a subsidiary of VSSL a retirement village developer and operator. VSSL owns two retirement village developments located in Auckland, and is currently proceeding with the development of projects in Hamilton and Kerikeri.
[Decision number 200420084.] Retrospective consents for land purchases by a no longer overseas companyTwo related decisions involve Prime Overseas Resources Company Limited which owns 163 hectares comprising: · 102 hectares at Batty Road, Karaka, and Glenbrook Road, Pukekohe, South Auckland; and · 61 hectares at Parikanapa Road and Dunstan Road, Gisborne.
In the first decision, the company, which is owned 33.33% by Dae Beom Chung, 20% by Dae Young Chung, 20% by Hee Seon Chung, 13.34% by Bong Chae Chung, and 13.33% by An Soon Seo, all of South Korea, has been given retrospective approval to acquire up to 88% of the related company, Prime Resources Company Limited, for $12,076,100 from Bong Chae Chung of South Korea.
According to the OIC:
Prime Resources Company Limited (Prime) has previously received consent from the Commission to acquire a 38 hectare forestry investment near Gisborne, a Gisborne sawmilling business and land located at Karaka and located at Pukekohe.
Since receiving consent to acquire the above properties, the shareholding in Prime has changed. The Applicant acquired shares on 23 June 2003 and 3 November 2003 which resulted in the Applicant holding 88% of Prime (with the remaining 12% held by Bong Chae Chung). Retrospective consent is sought for the Applicant to acquire up to 88% of the shares in Prime.
Subsequently, as from 17 March 2004, Bong Chae Chung holds 89% of the shares and Prime Overseas Resource Co Limited, 11% of the shares in Prime. Prime is no longer an overseas person, as Bong Chae Chung was granted New Zealand Permanent Residence on 18 November 2003, and has been resident in New Zealand since 6 June 2003, and is now ordinarily resident in New Zealand.
Prime’s sole director and majority shareholder, Bong Chae Chung, has demonstrated a commitment to New Zealand through applying for and taking up New Zealand permanent residency. [Decision number 200420075.]
In the second decision, Prime Resources Company Limited, then owned 45.4042% by Bong Chae Chung of Aotearoa, and 21% by Dae Beom Chung, 12.6% by Dae Young Chung, 12.6% by Hee Seon Chung, and 8.3979% by An Soon Seo, all of South Korea, is given retrospective approval to acquire 39.8 hectares at Batty Road, Karaka, Auckland for $2,812,500 from Lake View Karaka Trusteeship Limited of Aotearoa.
According to the OIC,
The subject property adjoins land previously acquired by the Applicant at Karaka. The Applicant’s sole director is a New Zealand permanent resident and resides permanently in New Zealand. The Applicant acquired the subject property on 10 March 2004. At the time of acquisition a view was mistakenly formed that the Applicant was no longer an overseas person as the two parties with greater than 25% beneficial interest (namely Bong Chae Chung and Dae Beom Chung) had on 18 November 2003, been granted New Zealand permanent residence. The Applicant was still an overseas person as 63% of the shares were held by Prime Overseas Resource Co Limited, a Korean company. A retrospective consent to acquire the subject property is sought by the Applicant.
Prime’s sole director and majority shareholder has demonstrated a commitment to New Zealand through applying for and taking up New Zealand permanent residency. [Decision number 200420076.]
Prime gained approval for its previous acquisitions in August 2003 (land at Parikanapa Road, Gisborne), and October 2003 (land at Karaka, Glenbrook, and Dunstan Road, Gisbourne). See our commentaries for those months for further details. Southland Plantation Forest Co of Japan buying more land after long breakSouthland Plantation Forest Company of New Zealand Limited, owned 51% by Oji Paper Co Limited, 30% by ITOCHU Corporation, 10% by Fuji Xerox Co Limited, and 9% by Fuji Xerox Office Supply Company Limited, all of Japan, has approval to acquire 504 hectares at Waimahaka-Fortification Road, Southland for $798,750 from South Wood Export Limited, owned by ITOCHU Corporation of Japan. According to the OIC,
Southland Plantation Forestry Company of New Zealand Limited (SPFL), proposes to acquire the subject property as part of its overall forestry programme located in Southland. It is SPFL’s long-term plan to establish 14,400 hectares of Eucalyptus Niten plantation, with a 12 to 15 year rotation, for the production of hardwood fibre, with replanting to occur after harvesting. Part of the subject property is currently established in forestry which will be subject to a forestry right in favour of the vendor in relation to the existing rotation of trees. The Applicant proposes to replant another rotation as these trees are harvested over the next two years. The operation will include planting, maintaining, harvesting and replanting the forest on a long term and ongoing basis. It is advised all of the activity is to be conducted under contract by South Wood Export Limited, which has extensive experience in forestry related activities. The forestry estate primarily focuses on providing timber for wood chip mill processing at Bluff. That part of the land not planned for forestry use will be eventually subdivided and sold.
Since 1992, SPFL has acquired 15,487.19 hectares of land, of which 9,960 hectares are plantable. To date 7,600 hectares of Eucalyptus Niten plantation have been established. 1,802.1031 hectares of the land acquired since 1992 has subsequently been sold.
The OIC says there is an “overall proposal to acquire 4,440 hectares of land for forestry development”. It is standard practice for South Wood to conduct all the forestry activities for SPFL. As the OIC outlines, SPFL has been a large purchaser of land in Southland, but has not had an acquisition approved since July 2001 (when it had two). See our commentary for that month for further details. [Decision number 200420078.] Land for forestry· Chun-Hsiang Kong and Chi Wang, as trustees of the Hsiang Chi Family Trust of Taiwan, has approval to acquire 19.6 hectares at Brooklands Forest, State Highway 22, Te Akau Road near Ngaruawahia, Waikato for $145,040 from The Salt and Light Family Trust of Taiwan. According to the OIC, “The subject property is a unit of the Brooklands Forest which has been acquired and developed by way of sale of lots by the New Zealand Forestry Group (NZFG). The overall Brooklands Forest comprises approximately 1,165 hectares of planted land at Ngaruawahia that was planted in 2001. In effect the overall Brooklands Forest development is a joint venture between overseas persons who provide development capital and NZFG who provide management expertise. The Applicant has entered into an Agreement for Sale and Purchase to acquire a lot in Brooklands Forest from the vendor. Following the acquisition the forestry lot will continue to be managed by a subsidiary of NZFG.” The last decision regarding the New Zealand Forestry Group was in November 2003. Salt and Light Family Trust gained approval to acquire the present property in August 2002. The price has gone up over $30,000 since then. See our commentaries for those months for further details. [Decision number 200420091.] · JPS, owned by the Soper and Wheeler Families of the U.S.A., has approval to acquire 1,395 hectares at 661 Hundalee Road, Kaikoura, Marlborough for $3,245,000 from Richard John Scott Watherston of Aotearoa. According to the OIC: “The Applicant is part of a group that has been part of the California forest management industry since early in the 20th century. The group’s principal activity is the harvesting and management of trees for sale in the forest products industry. This proposal is a continuation of the Applicant’s plan to establish forestry investments in New Zealand. A feature of the Applicant’s investment strategy is the intention to invest in a range of species other than radiata pine, having had a long experience with a diverse range of commercial species in California including Douglas Fir, Californian Redwood, Ponderosa Pine, Incense Cedar and White Fir. The Applicant claims that these species grow well in New Zealand and command values many times higher than equivalent grades of radiata pine. The Applicant intends to develop a redwood forest planted on 1,264 hectares of the property. The subject property adjoins an existing property previously acquired by the Applicant and is in close proximity to another property previously acquired by the Applicant.” Soper and Wheeler have made five other purchases in the South Island and one in the North Island, the last being in July 2002, when they acquired 3,512 hectares at The Doone, Inland Road, Waiau, North Canterbury for $4,218,750 from DC Carter, PA Phipps, BA Phipps and Hyde Park Limited (DC Carter being David Carter MP). See our commentary for that month for further details of that transaction and previous ones. [Decision number 200420086.] Land for wine· Canterbury House Vineyards Limited, owned by 67.67% by Michael Howard Reid, 12.91% by Anthony James Mathios, 6.51% by Arthur Brooks Dublin, all of the U.S.A., and 12.91% by Thomas Robert Malcolm Johnson of Aotearoa, has approval to acquire 0.12 hectares at Glasnevin Road, Waipara, North Canterbury for $4,898 from Brian Gordon Lang and Helen Lesley Lang of Aotearoa.
The OIC states:
In 1999, Transit New Zealand (Transit) stated that they considered that too much traffic volume was entering State Highway 1 from the Applicant’s restaurant and winery facilities. Transit required either the access be altered to a more acceptable alternative or that the restaurant facilities at the winery would have to be closed down. Following negotiations, it was agreed between the Applicant, neighbouring landowners, the Hurunui District Council and Transit that a secondary road (Kathryn Lane) be created providing vehicle access onto State Highway 1, a short distance from the existing access point. This relocation also involved substantial realignment of lanes on State Highway 1 to allow for turning areas.
It was determined by the parties that this parcel of land should be amalgamated with the adjacent land held by the Applicant. As part of the agreement, the Applicant is required to purchase an additional parcel of land from their neighbouring landowners. Following the creation of the secondary road and the associated subdivision, this parcel of land was isolated by the secondary road from the neighbouring landowner’s title. The parcel of land to be acquired by the Applicant can only be practically used for landscaping purposes, having no farming use.
The proposal is likely to result in improved vehicle access to and from the Applicant’s vineyard and restaurant facilities and State Highway 1. [Decision number 200420077.] Other rural land sales· Janet Roach of the U.S.A. has approval to acquire 22 hectares at Hihi Road, Mangonui, Northland for $520,000 from Raymond Frederick Annan and Philip Charles Annan as trustees of the D G Potts Family Trust of Aotearoa. According to the OIC, the property “is owned by the trustees of the D G Potts Family Trust (the Trust), which was established by the Applicant’s husband (who holds dual New Zealand/United States citizenship) for the benefit of his family. The Applicant has been granted a New Zealand residence permit and has been issued with a New Zealand Returning Resident’s Visa which is valid for two years from the date of the grant of the residence permit. The Applicant, who resides in the United States, is a discretionary beneficiary of the Trust. The trustees of the Trust propose to make an in specie distribution of the property to the Applicant. The property is predominantly covered in native bush and scrub. The Applicant and her husband propose to construct a permanent residence on the property for use as a family home. This will enable the Applicant to qualify for one of the conditions under the criteria for the grant of an Indefinite Returning Resident’s Visa. The Applicant and family have a strong commitment to preserving the archaeological and wahi tapu sites and enhancing the unique conservation values of the property.” [Decision number 200420080.] · Two decisions are part of the subdivision into lifestyle blocks of part of the Mataka Station, Purerua Peninsula, Bay of Islands, Northland, the land being acquired from Mataka Limited which is owned 21.12% by GW Dixon & IBA Group Limited of the U.K., 45.55% by W N Birnie and E C Williams of Aotearoa and 33.33% by C S Brown, K Gosling and B Buckley of Aotearoa. According to the OIC in each case: “The acquisition of this property by the Applicant is part of a rural lifestyle subdivision development on Mataka Station. The establishment and sale of the lifestyle lots will provide capital that will enable the farming operation of Mataka Station to become economically viable, and also to preserve and enhance the conservation and historic values of the property.” The land “includes/adjoins land that exceeds 0.4 hectares which is provided as a reserve, a public park, for recreation purposes, or a private open space”. The two pieces of land involved are: · Cartwright Consulting Limited and Tenon (IOM) Limited as trustees of the Cartwright Consulting Limited Employee Benefit Trust, owned by Ian Cartwright of the U.K., has approval to acquire 22 hectares for $2,362,500 [Decision number 200420079]; and · Clive Buckley of the U.K. has approval to acquire 20 hectares for $2,643,750 [Decision number 200420085]. · C-Scape Farms Limited, owned 50% each by Stephen Craig Cary and Renee Cary, both of the U.S.A., has approval to acquire 40 hectares at 1154 Te Akau South Road, Te Akau, Raglan, Waikato for $675,000 from Russell Robert Bovill and Vicki Alice Bovill and Dianne Delmar Attwood, trustees of the RR & VA Bovill Family Trust of Aotearoa. The OIC states: “Dr Cary, a shareholder of the Applicant, is currently working and residing in New Zealand under a Work to Residency Visa. Dr Cary has applied for New Zealand permanent residency under the Skilled Migrant category. Dr Cary intends to construct a home on the property for a permanent residence for himself and his family. In the short-term the Applicant intends to lease that part of the property not required for a residence back to the vendor to continue farming. Mr Cary, a shareholder of the Applicant is demonstrating a commitment to New Zealand through applying for and taking up New Zealand permanent residency.” [Decision number 200420083.] · Edward John Copsey and Amelia Fisher Rogers of the U.S.A. have approval to acquire 20.5 hectares at 92 Allans Beach Road, Portobello, Dunedin, Otago for $545,625 from Peter Philip Jenkinson and Dorothy Frances Jenkinson of Aotearoa. According to the OIC: “The Applicants propose to acquire the subject lifestyle property for use as their personal residence. The Applicants have recently received approval for New Zealand Work Visas and propose to relocate to New Zealand where Mr Copsey will take up employment with a Dunedin based design and build company named South Island Design Limited. The Applicants are applying for a Long Term Business Visa and intend to make an application for New Zealand permanent residency once they become eligible to do so. The Applicants are demonstrating their commitment to New Zealand through intending to apply for and take up New Zealand permanent residency.” [Decision number 200420082.] Summary statisticsAll investments The final value of investment approved in the calendar year 2004 is considerably lower than (just over half) the previous December year, but the net value (i.e. disregarding sales from one overseas investor to another, and discounting part New Zealand ownership of the assets) is almost three-quarters higher. By far the greatest part of the value of the approvals is for sale from one overseas investor to another. The 2003 total was boosted in November 2003 by the $5.7 billion sale of the National Bank to ANZ (Australia) from Lloyds TSB (U.K.).
*In addition there were six retrospective approvals granted during the month. This involved a gross consideration of $17,626,694 and 337 hectares of land, and a net investment of $2,848,629 and 91 hectares of land. Four are identified above; it is not clear what the other two are.
Investment involving land Gross sales of land approved by the OIC during the full years to December have increased over ten times in area, though net sales have fallen to the point where more is being recorded as being transferred to New Zealand part-owners hands than passed on to new overseas owners. A large proportion of the hectares being bought and sold are between one overseas investor and another. Refusals (above) have risen in number, though they have fallen in area (value is not revealed), but are still a tiny proportion of the total.
* In addition there were six retrospective approvals granted during the month. The three including freehold land involved a gross land area of 300 hectares and a net land area of 54 hectares. The three retrospective approvals including other interests in land involved a gross land area of 37 hectares and a net land area of 19 hectares.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Compiled by: Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
