March 2004 decisionsChange in Malaysian company with 30% holding in Queenstown Park Royal Macquarie property companies take cross shareholdings Harvard buys another forest, at Taneatua, Bay of Plenty Secretive Marlborough land purchase for electricity Rausing’s Ingleby buys another farm at Raincliff, South Canterbury Holcim buys land for quarry at Bombay, South Auckland
One refusalWoon Seok Seo of South Korea has been refused approval to acquire 65 hectares at One Tree Point Road, Ruakaka, Whangarei for $3,600,000 from Gary John Price and Marilyn Daphne Price of Aotearoa.
The OIC says:
The Applicant proposed to acquire the subject property and continue the current dairy farming operation which is managed by a contract milker. It was proposed in the longer term to breed beef cattle to export beef to South Korea. The Applicant has established and owns a restaurant in South Korea which he proposes to expand by way of franchised restaurants nationwide in South Korea.
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 200410031.] Change in Malaysian company with 30% holding in Queenstown Park RoyalDevanna Limited, owned 11.91% by Datuk Surin Upatkoon of Malaysia and 88.09% by other shareholders in Malaysia, has approval to acquire up to 30% of Wedson Holdings Limited, which is the owner of the Queenstown Park Royal hotel. The share purchase is for an amount “to be advised”, from Darwin Pacific Corporation, owned 38.1303% by Datuk Surin Upatkoon and the remaining 61.8697% by other shareholders in Malaysia (though it appears that it is in fact directly owned by Goldenmark Limited – see below). The hotel is on 0.67 hectares at Beach Street, Queenstown, Otago.
In December 2003, the OIC approved the sale of the hotel by Wedson Holdings to BG Hotels (Queenstown) Limited, owned by Lloyd Berger of Australia. See our commentary for that month for further details. That sale appears to have fallen through. Wedson was then owned as follows:
30% – Darwin Pacific Corporation, Malaysia 20% – Brian Chang, Singapore 10% – Chardon Inc, Singapore 10% – Graeme Morris Todd, Aotearoa 10% – Airtrust (New Zealand) Limited, Singapore 10% – Surin Upapatthang Koon, Malaysia 10% – Anton Suleiman, Indonesia.
The present transaction therefore appears to be simply a rearrangement of Datuk Surin Upatkoon’s interest in the hotel.
According to the OIC,
Wedson purchased the Queenstown Park Royal hotel in 1999. The Applicant and vendor are closely associated with the Applicant holding a 33% shareholding in Goldenmark Limited the parent company of the vendor. By its association with Goldenmark, the Applicant has a history of investment in the Queenstown commercial property market. [Decision number 200410033.] Macquarie property companies take cross shareholdingsThe Macquarie Goodman Industrial Trust, 100% owned in Australia has approval to acquire “up to 53%” of the shares in Macquarie Goodman Property Trust of Australia for $70,649,000, while in a second decision, Macquarie Goodman Property Trust has approval to acquire “up to 47%” the shares in Macquarie Goodman Industrial Trust for almost the same amount – $70,312,000.
According to the OIC, Macquarie Goodman Industrial Trust owns 3.4 hectares of land in Auckland: · 2.7 hectares at 41 Nesdale Avenue, Manukau City (the Nestle Building, a warehouse and distribution centre, book value $8.0 million); and · 0.7 hectares at 60-70 Stanley Street, Parnell (the Ricoh Building and the Kodak Building, both office buildings, book value $7.5 million each).
The OIC also says that Macquarie Goodman Property Trust owns 10.2 hectares at 86 Plunket Road, Wiri, Manukau, Auckland (the Auckland Distribution Centre, a warehouse and distribution centre, book value $46.6 million).
According to the OIC,
The Macquarie Goodman Industrial Trust (MGI) is an Australian listed unit trust which invests in industrial properties in Australia and New Zealand. MGI is managed by Macquarie Goodman Funds Management Limited (MGFM), which is a subsidiary of Macquarie Goodman Management Limited (MGM).
The Macquarie Goodman Property Trust (MGP) is a New Zealand listed unit trust which has various property investments in New Zealand. MGP is managed by Macquarie Goodman NZ Limited (MGNZ), which is a subsidiary of Macquarie Goodman Management Limited (MGM).
MGI and MGP, through nominated parties, propose to enter into an agreement so that specified properties in both portfolios are beneficially owned by MGI (53%) and MGP (47%) as tenants-in-common. The Applicant advises that the co-ownership arrangement is likely to lead to improved management of the portfolio, and a stronger structure for future growth.
Macquarie is known as a sharp operator, making heavy use of complex financial structures usually aimed at increasing profits through tax avoidance. Not long after this transaction, the companies jointly bought the Fletcher Head Office at 810 Great South Road, Penrose, Auckland for $72 million.
By August 2004, they owned properties with book value of $222 million in Aotearoa, including in addition to the above:
· The Gate Industry Park, 373 Neilson Street, Penrose, Auckland (book value $46.6m, 13.8 hectares) · The Penrose Industrial Estate, Gavin Street, Penrose, Auckland (book value $33.4m, 8.8 hectares) · Central Park Corporate Centre, 666 Great South Road, Greenlane, Auckland (book value $54.0m) · Millennium Centre, 602 Great South Road, Greenlane, Auckland (book value $43.3m) · IBM Centre, 5 Wyndham Street, Auckland (book value $21.4m) · BTI House, 103 Carlton Gore Road, Newmarket, Auckland (book value $17.0m) · Public Trust House, 101 Carlton Gore Road, Newmarket, Auckland (book value $16.3m) · Panasonic House, 141 Manners Street, Wellington (book value $11.9m) · EDS Building, 2 Pacific Rise, Mount Wellington, Auckland (book value $5.8m) · Windsor Court, 126 Parnell Road, Parnell, Auckland (book value $6.4m) (see http://www.macquariegoodman.com.au/au/mg/portfolio/mgp/overview.htm – details as at 11 August 2004). [Decisions 200410027, 200410028.] Harvard buys another forest, at Taneatua, Bay of PlentyDiversified International Timber Holdings, LLC, owned by the President and Fellows of Harvard College, U.S.A., has approval to acquire 784 hectares at 995 Stanley Road, Taneatua, Bay of Plenty for $2,407,500 from GSL Capital Limited, which is owned as follows:
· 51.88% – Nomura International PLC’s Employees and Former Employees, U.K. · 31.13% – Ian Henderson, U.K. · 10.38% – Michael Campbell and Family, U.K. · 4.73% – other shareholders in the U.K. · 1.3% – France · 0.58% – Aotearoa
The OIC reports:
The proposed transaction is proceeding by way of a sale and a purchase of the property excluding the plantation trees on the property. Approximately 40.5 hectares of the property is subject to a registered forestry right in favour of Fletcher Challenge Forests Limited. Prior to settlement of this transaction it is proposed that the vendor (GSL) will create a forestry right over the balance of the property. It is proposed that, as the vendor harvests the trees from 2004, the land will be progressively released to the Applicant, until harvesting is completed in 2010-11, for the Applicant to commence its forestry planting programme.
The Applicant is proposing to develop an alternative softwood species to commercially and economically viable levels, for high quality end-user wood markets. The Applicant proposes to establish the property in cypresses to ascertain whether these species can be grown in commercially significant quantities. [Decision number 200410038.] Secretive Marlborough land purchase for electricitySome further details of an approval that was originally almost completely suppressed were released on appeal in June 2004. A buyer whose identity is still suppressed has approval to acquire 101 hectares at State Highway 63, The Branch River, Wairau Valley, Marlborough for $855,000 from Geoffrey Mathew Lambert and Donna-Framina Lambert of Aotearoa.
The “rationale” for the decision is still almost completely suppressed. The only clue we have is that the “Business Activities” involved are “Electricity & Gas Supply”.
In the original release, even a standard paragraph which appears mechanically in every decision's rationale, was suppressed. (“The Commission is satisfied that the applicant has significant business experience and acumen relevant to and is demonstrating financial commitment towards the investment. The Commission is further satisfied that the persons who exercise control over the applicant are of good character and not the kind of persons re-ferred to in section 7(1) of the Immigration Act 1987.”) [Decision number 200410029.] Rausing’s Ingleby buys another farm at Raincliff, South CanterburyThe Ingleby Company Ltd, owned by The Ingleby Trust of the U.K., has approval to acquire 272 hectares at Raincliff Road, Raincliff, Geraldine, Canterbury for $2,643,750 from Malcolm George Varner and Stephanie Lynn Varner of the U.S.A.
According to the OIC,
“The Ingleby Company Ltd proposes to acquire the subject property to run sheep, cattle and deer on the property. It is proposed to upgrade and improve the productivity and product quality produced from the property. It is also proposed to further develop and enhance the current sports animal operation operated on and from the property. The sports animal operation and tourism ventures include hunting (including game birds), fishing, photography and horse riding. The proposed purchase is likely to complement Ingleby’s existing South Canterbury farming operation, the nearby Raincliff Station which was acquired by Ingleby in 2002. Ingleby sees the purchase as increasing and enhancing its existing New Zealand agricultural interests by capital investment to improve the pastoral quality of the property and increasing the stock carrying capacity through the use of the resources and expertise available to the company.”
The approval for the 1,330 hectare Raincliff Station purchase was in February 2002, for $9,450,586. In December the same year, Ingleby received approval to buy 1,951 hectares at Waitahaia Station and Ruatahunga Station, Tokomaru Bay, Gisborne for $3,937,500. See our commentary for that month for further details.
Ingleby is owned by the controversial billionaire Rausing family of the U.K. For details, see our commentary on the February 2002 decisions. [Decision number 200410030.] Holcim buys land for quarry at Bombay, South AucklandHolcim (New Zealand) Limited, owned 27.1% by Thomas Schmidheiny of Switzerland, 64% by other shareholders in Switzerland and 8.9% by the Capital Group Companies of the U.S.A., has approval to acquire 30 hectares at Beaver Road and State Highway 1, Bombay, South Auckland for $1,125,000 from Hellaby Holdings Limited of Aotearoa.
According to the OIC, Holcim (formerly Milburn New Zealand)
is proposing to acquire the subject property which adjoins a 325.9 hectares property already owned by the Applicant for quarrying aggregates. It is proposed that approximately 4.8 hectares of the property will be leased back to the vendor to continue the petfood manufacturing operations. The remaining area of the property is currently utilised as stock holding paddocks. It is proposed the subject property will provide additional buffer land to the east of the quarry and is likely to assist in the extension of quarrying activities. It is likely that, subject to resource consent approval, the subject property will be utilised to extend the quarrying activities. [Decision number 200410034.] Other rural land sales· George Hayes Turney and Nancy Carolyn Turney of the U.S.A., have approval to acquire 21 hectares at Midgley and Frantoio Roads, RD 1, Mangonui, Northland, for $280,000 from Ocean View Olives Limited of Aotearoa. The land includes and/or adjoins land “which is provided as a reserve, a public park, for recreation purposes, or a private open space”. According to the OIC, “The Applicants propose to acquire a lifestyle property situated near Mangonui and construct a residence to reside on the property. The Applicants are proposing to apply for a Long Term Business Visa. The property is part of a subdivision of a larger block that has been undertaken by the vendor. The Applicants intend to grow olives on the property and investigate the suitability of the property for other crops. Approximately 4 hectares of the property has already been established in olive trees by the vendor. The Applicants are demonstrating their commitment to New Zealand through intending to apply for and to take up New Zealand permanent residency.” [Decision number 200410037.] · Blackdogmountain Trust, owned by Peter Karl Eck and Kerry Lynn Edwards-Eck of the U.S.A., has approval to acquire 26 hectares at 247 Te Miro Road, Cambridge, Waikato for $341,250 from Kevin Albert Capper, Adrianne Louise Scott and Elizabeth Winifred Capper of Aotearoa. According to the OIC, “The beneficiaries of the Applicant have made an application to the New Zealand Immigration Service for New Zealand permanent residence under the Skilled Migrant category. They propose to acquire the subject property for use as a residence. The vendor currently leases approximately 20 hectares of the property for grazing dry stock. It is proposed that this use will continue initially and that the Applicants will eventually graze their own stock. The beneficiaries of the Applicant are demonstrating a commitment to New Zealand through applying for and taking up New Zealand permanent residency.” [Decision number 200410036.] · Michael Husaruk Leon of the U.S.A. has approval to acquire 41 hectares at 1122B Paekakariki Hill Road, Pauatahanui, Wellington for $495,000 from Stephen Anthony Mark Hutchins and Bronwen Monica Mary Hutchins of Aotearoa. According to the OIC, “The Applicant who is applying for New Zealand permanent residency under the Business Investor category proposes to acquire the subject property as a residence. The Applicant proposes to undertake wind turbine research, bio-oil plant research for wind turbines and managed ecological wastewater treatment systems research for use with animal waste. The Applicant is demonstrating a commitment to New Zealand through applying for and taking up New Zealand permanent residency.” [Decision number 200410035.] · Kennethmont Farms Trust, owned by Richard Singer of the U.S.A., has approval to acquire 1,110 hectares at Little River, Banks Peninsula, Canterbury for $5,287,500 from AWH Bremner of Aotearoa. According to the OIC, “The subject property is currently utilised as a sheep and beef unit. The Applicant intends to continue the current use of the property and implement a farm development programme over a three year timeframe. This development programme is likely to result in an increased stock carrying capacity of the property and an increase in farm productivity with an emphasis on producing a high quality wool clip.” [Decision number 200410032.] Summary statisticsAll investments Again the value of investment approved in the year to March 2004 is considerably higher than for the previous year to March (by $800 million), but the net value (i.e. disregarding sales from one overseas investor to another, and discounting part New Zealand ownership of the assets) is little different. By far the greatest part of the value of the approvals is for sale from one overseas investor to another. One decision was suppressed almost in full.
Investment involving land Gross sales of land approved by the OIC during the years to March have greatly increased in area, though net sales in 2004 are negative – presumably largely overseas owned land is being sold to companies or consortia which have a significant New Zealand shareholding. There was one refusal this year (above), compared to none at this time last year, but refusals are as always a tiny proportion of the total.
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Compiled by:
Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
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