May 2004 decisions

One refusal: vineyard purchase in Marlborough

Carter Holt Harvey sells tissues business to Svenska Cellulosa of Sweden

Rubicon gets approval to buy 50.1% of Tenon (former Fletcher Forests)

Hancock of the US buys 56,000 hectares of forest rights in Bay of Plenty

Shuffling of Canwest media ownership in preparation for public share offering

US/Australian interests buy WH Smith’s bookshops, Whitcoulls and Bennetts

Change in ownership in Truck Investments Ltd, truck dealers

Sky City buys Aspinall’s share in Christchurch Casino

US company to buy private school in Palmerston North

Intercontinental Hotels and Carter Group buy Park Royal hotel, Queenstown

Australia/US company buys lease for land for Quay Park Arena, Auckland

Kiwi Income Properties buys two properties on The Terrace, Wellington

AMP NZ Office Trust buys Mobil on the Park and the BNZ Centre, Wellington

Macquarie Goodman buys Mangere land for industrial estate

Gulf Harbour Investments buys more Gulf Harbour land for $1

Other rural land sales

Summary statistics

One refusal: vineyard purchase in Marlborough

Alan Peter Grey and Joy Anne Grey of the U.K. have been refused approval to acquire 10.4 hectares at Jones Road, Blenheim, Marlborough for $1,409,397 from Berakah Estate Limited of Aotearoa.

The OIC states:

The Applicants proposed to acquire the subject property which was established by the vendor in Sauvignon Blanc vines in 2003. The Applicants proposed that in the first two to three years all production would be sold as bulk grapes. After this time it was proposed that the Applicants, who have experience in marketing and brand management in the United Kingdom and Ireland liquor industry, would import wine into the United Kingdom and Ireland under their own brand label that they proposed to create.

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 200410053.]

Carter Holt Harvey sells tissues business to Svenska Cellulosa of Sweden

Svenska Cellulosa Aktiebolaget (SCA), owned 69.38% in Sweden, 11.72% in the U.S.A., 7.22% in the U.K., and 11.68% by other overseas shareholders from “unknown” countries, has approval to acquire CHH Tissue Limited and “CHH Tissue intellectual property rights” for $1,015,000,000 (for the entire Tissue Division operated in New Zealand, Australia and Fiji) from Carter Holt Harvey Limited/NZ Forest Products Limited. The OIC records CHH as being owned as follows:

·        50.5% - International Paper Company Limited, U.S.A.

·        5.7% - Australia

·        5.1% - Delaware International Advisors Limited, United Kingdom,

·        5% - Franklin Resources Inc, U.S.A.

·        13.7% - other “overseas persons” from “unknown” countries

·        20% - Aotearoa

The sale includes the following land:

·        404 hectares of freehold at 114-152 Swanson Road, Henderson, Auckland; Foreman Road, Te Rapa, Hamilton, Waikato; Fletcher Avenue, Kawerau; Spencer Avenue, Kawerau; and SH30, Kawerau, Bay of Plenty.

·        2.1 hectares of leasehold at 6 Alderman Drive, Henderson, Auckland; and Foreman Road, Te Rapa, Hamilton, Waikato.

According to the OIC,

The Applicant (SCA) is a Swedish company that operates as an international, integrated group producing and selling hygiene products, packaging products and forest products. SCA’s main market is in Western Europe, and also certain segments in North America. The SCA group is expanding its business operations in Asia, Central and Eastern Europe and Latin America. SCA proposes to acquire the Tissue Division from Carter Holt Harvey Limited (CHH). The CHH Tissue Division has operations in New Zealand, Australia and Fiji that comprises four divisions – Consumer Brands, Experko, Treasure Babycare and Sancella. The proposed acquisition is consistent with SCA’s acquisition strategy that will enable SCA to acquire an established business with a market presence in the Asia Pacific region.

SCA has three main product groups: Hygiene Products (tissues, incontinence care products, baby nappies and feminine hygiene, 50% of its sales), Packaging (corrugated board, containerboard, protective and speciality packaging, 35%), and Forest Products (publication papers, pulp, solid-wood products, and timber, 14%). It operates in 40 countries (mainly in Europe and the U.S.A.) with 46,000 employees, and a presence already in Christchurch, Wellington, and Auckland. It claims to be a “world leader” in incontinence products with 26% of the global market, and Europe’s largest producer of corrugated board and second-largest producer of container board. It has acquired over 50 companies since 1997. Its Hygiene Product brands include Libresse, Zewa, Edet, Velvet, Serenity, Tork, Libero, Danke and Tena. In the year to 31 December 2003, SCA had $17.8 billion in net sales (down from $18.4 billion the previous year), and $1.1 billion in net earnings. (Ref: www.sca.com.)

The company claims a highly responsible environmental record. However, it owns the former Wisconsin Tissue Mills in the U.S.A. whose Menasha mill was responsible, under previous owners (who may still retain responsibility for the clean up), for dumping PCBs and other pollution into the Fox River and Green Bay, Wisconsin, some of which continues. See http://www.foxriverwatch.com/sca.html for details. SCA is one of a small number of transnational corporations (Fonterra is another) which have negotiated global “Codes of Conduct” or “Framework Agreements” with global union federations, agreeing on certain minimum standards in dealing with their workers and unions internationally. SCA’s was concluded this year.

CHH, despite public assertions, appears to be moving out of “value-adding” activities by this move.

[Decision number 200410051.]

Rubicon gets approval to buy 50.1% of Tenon (former Fletcher Forests)

Rubicon Forests Limited (a wholly owned subsidiary of Rubicon Limited has approval to acquire up to 50.1% of Tenon Ltd for $163,194,119.

The sale includes 31,786 hectares of freehold and 11,343 hectares of leasehold “at various locations” in the Bay of Plenty.

According to the OIC, Rubicon is owned as follows:

·        35.0297% - U.S.A.

·        20.3187% - U.K.

·        4.038% - Australia

·        0.4598% - Singapore

·        0.1999% - France

·        39.9539% - New Zealand

The OIC also lists the existing shareholders of Tenon Limited, owning the 80.003% of shares not already owned by Rubicon Ltd before the share purchase as follows:

·        21.05% - U.S.A.

·        8.88% - Xylem Fund ILP, U.S.A.

·        5.23% - U.K.

·        2.67% - Other overseas shareholders of “unknown” country.

·        62.17% - New Zealand

The OIC states that Tenon was 42.271% overseas owned before the change in ownership, and 48.98022% afterwards. For further details of its initial shareholdings, see the Hancock decision below.

According to the OIC,

The Applicant is a wholly-owned subsidiary of Rubicon Limited (Rubicon). Rubicon currently holds 19.997% of the specified securities of Tenon Limited (Tenon) (previously known as Fletcher Challenge Forests Limited), and proposes to acquire up to 50.01% of the specified securities of Tenon Limited. The Applicant is focused on bringing value to its forestry portfolio which consists of shareholdings in Tenon, 31.67% of ArborGen LLC (a U.S.A. forestry biotechnology partnership), 50% of Horizon2 (a partnership involved in the development and commercial supply of tree stocks in New Zealand and Australia), 50% of Forestadora Tapebicua JA (an Argentine forestry and processing operation), and a 2.81% of Genesis Research and Development Limited (a biotechnology research and development company).

Rubicon and Tenon are both former parts of the Fletcher Challenge empire, and this takeover indicates how problematic was both the empire and its breakup. Tenon had previously sold most of its forests (see our commentary for February 2004 for further details). Rubicon’s takeover of Tenon was not straight forward, requiring an increase of its initial offer from $1.85 per share to $1.95 when independent directors rejected the original price in the light of a valuation of between $2.01 and $2.20 per share. It appears that the value of the deal quoted by the OIC (above) reflects the higher offer. Rubicon now owns 50.01% of Tenon and controls the company.

[Decision number 200410052.]

Hancock of the US buys 56,000 hectares of forest rights in Bay of Plenty

In two decisions, Tiaki Plantations Company, managed by Hancock Natural Resource Group, Inc, owned 65.8% in the U.S.A. and 34.2% in Australia, has approval to acquire:

·        0.6868 hectares of leasehold at 185 Totara Avenue, Tauranga, Bay of Plenty and

·        13.96 hectares of Profit a Prendre [right to harvest] at Matahina Quarry, 1061 Galatea Road, Murupara, Bay of Plenty

from Kiwi Forests Group Limited of Aotearoa [Decision 200410059]; and

·        23.8 hectares of leasehold at 400 Tamarangi Drive, Kawerau and Part of Onepu Railyard, Bay of Plenty

from subsidiaries of Tenon Limited and Tarawera Forests Limited [Decision 200410060].

States the OIC:

The Applicant is an investment vehicle representing investor clients that are managed by Hancock Natural Resource Group, Inc (HNRG). HNRG is a wholly-owned subsidiary of John Hancock Financial Services, Inc, which is listed on the New York Stock Exchange and is a United States of America based insurance and investment company. HNRG actively evaluates timberland acquisition opportunities across North America and internationally, on behalf of its managed timberland portfolios for public and corporate pension schemes. HNRG has current timberland investments in the United States of America, Canada, and Australia. The proposed acquisition provides investors with geographical diversification with exposure to New Zealand timberland.

In the first decision,

The acquisition involves forestry rights over parts of the Matahina, Ngamotu, Rangitaiki, Swan, Mangawhio, Pethybridge, Putauaki, Rerewhakaaitu, Waiohau, Wharetoto, Rainbow Ngatapa and the Taupo Hunt Club forests. These forests cover a land area of approximately 25,858 hectares.

In the second decision,

The acquisition includes a forestry right over part of the Tarawera forest. That forest covers a land area of approximately 30,200 hectares.

Clearly, the great majority of forestry rights being acquired do not require OIC consent. In both decisions, the amount paid is suppressed.

The activity being approved includes not only forestry, but mining as well.

The sale appears to be before Rubicon’s takeover of Tenon (see above), because Tenon’s ownership is given as:

·        23.8445% - U.S.A.

·        7.1049% - Xylem Fund ILP, U.S.A.

·        8.2462% - U.K.

·        2.1363% - Other overseas shareholders from “unknown” countries

·        0.8072% - Australia

·        0.0919% - Singapore

·        0.04% - France

·        57.7289% - Aotearoa

[Decisions 200410059 and 200410060.]

Shuffling of Canwest media ownership in preparation for public share offering

Global Communications Limited, owned by CanWest Global Communications Corporation of Canada, has approval to acquire CanWest MediaWorks (NZ) Limited for $225,000,000 from CanWest International Communications Inc of Canada, owned by CanWest Global Communications Corporation.

This was in preparation for CanWest to issue shares in its New Zealand subsidiary, CanWest MediaWorks (NZ) Limited (MediaWorks). While it told the OIC it intended to offer up to 45% of the company’s shares, in fact it has 70% of the company after the float. It issued 68 million shares at $1.53 each, raising $104 million.

MediaWorks has two divisions: RadioWorks and TVWorks. TVWorks operates the free-to-air channels TV3 and C4 (formerly TV4). RadioWorks claims it is the country’s largest radio group with a 10-plus total weekly audience of 1,311,900 representing 53.2% of the 10-plus total weekly audience. Its rival is The Radio Network, owned by the O’Reilly family controlled Australian Radio Network (ARN). RadioWorks runs network stations Radio Pacific, The Edge, The Rock, Solid Gold and Channel Z; national stations More FM and The Breeze; and local stations under 17 different brands. It also owns advertising agency, The Radio Bureau. Virtually all of these were acquired by takeover rather than being created by the company. (See http://www.mediaworks.co.nz and http://canterbury.cyberplace.org.nz/community/CAFCA/publications/Miscellaneous/mediaown.pdf.)

According to the OIC:

Global Communications Limited (GCL) primary business is operating media businesses. GCL owns and operates the Global Television Network as well as a number of independent television stations, radio stations and newspaper publications throughout Canada. GCL also has holdings in Ireland, Barbados and Australia. GCL through its wholly owned subsidiary CanWest International Communications Inc. (CICI) owns the New Zealand television business, TV3 Network Services Limited, and radio business, CanWest NZ Radio Holdings Limited.

GCL proposes to establish CanWest MediaWorks (NZ) Limited (CML) to acquire the New Zealand television business, TV3 Network Services Limited (to be renamed CanWestTVWorks Limited), and radio business, CanWest NZ Radio Holdings Limited (to be renamed CanWest RadioWorks Limited). GCL proposes to acquire up to 100% of CML shares. It is GCL’s intention to list CML on the New Zealand Stock Exchange and to offer for sale up to 45% of the ordinary shares of CML to New Zealand retail and institutional investors and certain overseas institutional investors.

 [Decision number 200410063.]

US/Australian interests buy WH Smith’s bookshops, Whitcoulls and Bennetts

Skoob Limited, owned 83% in the U.S.A. and 17% in Australia, has approval to acquire WH Smith Aspac Limited for $91,000,000 from WH Smith Holdings Limited, which is owned 86.59% in the U.K. and 13.41% in the U.S.A.

According to the OIC,

The Applicant has been incorporated to represent the interests of funds managed by Pacific Equity Partners Pty Limited (PEP) and to acquire the Australian, New Zealand and Hong Kong businesses of WH Smith. In New Zealand the businesses include the book chains Whitcoulls and Bennetts. PEP is an Australian based private equity management company that invests in management buyouts, industry consolidations, divestitures, late stage venture capital opportunities and other complex merchant banking situations. PEP’s strategy is to invest in business opportunities where its management expertise, capital resources, and understanding of financial structuring enables it to improve the operating performance and create value in the relevant business.

It is yet another change of ownership of Whitcoulls in the last two decades, which has been through the hands of just about every major corporate raider and asset stripper active in Aotearoa. Originating in the two old firms Whitcombs and Tombs and Coulls, Sommerville Wilkie, Brierley Investments bought it and after selling off parts, sold the bookselling and stationery operation to Graeme Hart’s Rank Group in 1992 as part of the rapidly growing empire he built from his bargain basement purchase of the Government Printing Office at its inept privatisation. He in turn sold it to Eric Watson’s Blue Star Group in 1996, which was then sold to rapidly expanding US company US Office Products (USOP). USOP predictably got into financial trouble and hawked off Blue Star’s assets beginning in 2000. In 2001, WH Smith (of the U.K.) bought Whitcoulls in Aotearoa and Angus and Robertson in Australia, among other booksellers USOP had to sell. Whitcoulls controls 40% of the book market and 30% of the video and DVD market with 59 stores in Aotearoa.

Now they are being sold to yet another corporate raider, PEP, which is also buying Angus and Robertson. According to TVNZ, it paid $136 million for Whitcoulls and Bennetts, rather than $91 million as recorded by the OIC. It is likely PEP is eyeing the wealth of real estate represented in the 59 stores Whitcoulls operates throughout Aotearoa. It is floating a bond issue on the New Zealand share market for its new acquisitions (as A&R Whitcoulls Group Holdings) offering six-year bonds which will pay interest of 9.5% per year. The technique is to pay for its acquisition with other people’s money (at fixed interest), sell off the assets, and then float whatever remains of the operation in a few years time. PEP was part of an international group of investors which bought Frucor from the Apple and Pear Marketing Board (ENZA) in 1998 for $65,000,000, and then onsold it to Danone of France in 2002 for $298,600,000. See our commentaries for those months for further details.

(Ref: TVNZ, “Whitcoulls goes to the Aussies”, 26/4/04; Whitcoulls online – about us, accessed 26/9/04; New Zealand Herald, “Whitcoulls heading back to boards”, by Pam Graham, 24/8/04.)

[Decision number 200410047.]

Change in ownership in Truck Investments Ltd, truck dealers

Sime Darby Motor Group (NZ) Limited, owned 83.73% in Malaysia and 16.27% by overseas shareholders in other “unknown” countries, has approval to acquire Truck Investments Limited for $61,830,000 plus a potential additional consideration of up to $5 million following completion of the accounts as at 31 March 2004 from Jardine Cycle & Carriage Limited, which is owned 56.41% by Jardine Matheson Holdings Limited of Hong Kong, 34.47% in Singapore, and 9.12% in Malaysia.

The OIC states:

The Applicant proposes to acquire 100% of the shares of Truck Investments Limited, a company whose businesses and its subsidiaries include Truck sales companies that sell Hino, Mack and Renault brands and Truck Stops which operate that national chain spare parts and service outlets for trucks. The proposed acquisition is likely to achieve the Applicant’s long-term objective of increasing its investment in the New Zealand motor industry.

[Decision number 200410054.]

Sky City buys Aspinall’s share in Christchurch Casino

Sky City Entertainment Group Limited has approval to acquire Aspinall (NZ) Limited for $93,750,000. Aspinall (NZ) owns 40.5% of the Christchurch Casino.

The purchase followed a drawn out and very public fallout between the two major shareholders in the Casino, Skyline Enterprises of Queenstown (headed by the Casino’s chairman, Barry Thomas), and Aspinall of the U.K. which each had a 40.5% interest. Though the bitterness of the dispute suggested other motivations, Thomas fought the Sky City purchase of Aspinall’s interests on the public grounds that it would give it a dominating position in the New Zealand casino industry. Sky City, as well as owning casinos in Australia had interests in casinos in Auckland (100%), Hamilton (70%) and Sky City Queenstown (60% in a joint venture with Skyline). This acquisition also gave it an interest in the Dunedin casino. Only the Wharf Casino in Queenstown remains independent. Thomas unsuccessfully asked the Commerce Commission and the Casino Control Authority to intervene (New Zealand Herald, “SkyCity given nod for Christchurch plunge “, by Simon Hendery, 19/5/04).

According to the OIC, Sky City is owned as follows:

·        23.91% - Australia

·        10.59% - U.S.A.

·        4.88% - U.K.

·        2.67% - Hong Kong

·        1.18% - Singapore

·        56.77% - Aotearoa

Aspinall (NZ) Limited was previously owned as follows:

·        24.7344% - Aspinall family, U.K.

·        24.6178% - John Aspinall Foundation, U.K.

·        12.5% - The Osborne Family Trust, U.K.

·        19.6438% - other shareholders in the U.K.

·        16.67% - Kerry Packer, Australia

·        1.834% - James Packer, Australia.

Aspinall (NZ) also owns shares in Christchurch Hotel Ltd, and owns part of its shareholding in the Casino indirectly. According to the OIC:

Aspinall (NZ) Limited, a holding company whose principal assets comprises a 30.67% share in Christchurch Casinos Limited (CCL) and a 33.3% share in Christchurch Hotel Limited (CHL). CHL holds an indirect 21.09% interest in CCL through an interest in Premier Hotels (Christchurch) Limited. Aspinall also is the operator of Dunedin Casino. CCL holds a 33% share in Dunedin Casinos Limited.

Premier Hotels owns the nearby Crowne Plaza Hotel (formerly the Park Royal).

[Decision number 200410066.]

US company to buy private school in Palmerston North

Fireseed LLC, owned by 70% by Kent Ferguson and 30% by Roger Himovitz, both of the U.S.A., has approval to acquire 14.6 hectares at Highden Manor, 220 Green Road, Palmerston North, Manawatu for $1,603,125 from Humlegaarden A/S, owned by Finn Scott Andersen of Denmark.

According to the OIC,

Highden Manor is currently being used by an educational provider (Shamballah School), as well as being made available for private conferences, parties, weddings and other events. The Applicant proposes that The School Down Under (SDU) (whose sole shareholder is Kent Ferguson the majority shareholder in the Applicant) will lease the property to provide outdoor education and adventure for international students for one session (20 weeks) each year. The outdoor education will be provided at the subject property and through various locations in New Zealand. It is also proposed that the property will continue to be available for private conferences, parties, weddings and other events.

[Decision number 200410057.]

Intercontinental Hotels and Carter Group buy Park Royal hotel, Queenstown

A SPHC (NZ) Holdings Limited/Carter Group Limited joint venture, owned 50% by InterContinental Hotels Group PLC of the U.K., and 50% by Philip Carter Management Limited of Aotearoa, has approval to acquire 0.6713 hectares at Beach and Lake Streets, Queenstown, Otago for $20,800,000 from Wedson Holdings Limited. Wedson is owned as follows:

·        20% - Brian Chang, Singapore

·        10% - Airtrust (New Zealand) Limited, Singapore

·        10% - Chardon Inc, Singapore

·        18.5609% - Malaysia

·        11.4391% - Datuk Surin Upatkoon, Malaysia

·        10% - Surin Upapatthang Koon, Malaysia,

·        10% - Anton Suleiman, Indonesia.

·        10% - Graeme Morris Todd, Aotearoa

The OIC states:

SPHC Holdings (NZ) Limited (SPHC) operates in New Zealand under the InterContinental, Crowne Plaza, Holiday Inn, Parkroyal and Centra brands. SPHC is entering into a joint venture with Carter Group Limited to acquire the Queenstown Parkroyal Hotel which is likely to secure its position in Queenstown with a hotel that it has had a long history in managing. SPHC views the Queenstown market as an important part of its overall New Zealand strategy.

The new owners did not get off to a good start however. In November, the hotel’s staff walked out “in disgust at the tactics of the hotel’s new managers, InterContinental Hotel Group”. IHG took over management on 1 November and made the staff (numbering nearly 100) redundant, forcing 85 to reapply for their jobs, having assured staff their jobs were safe. The tactics were foolhardy: Queenstown has a chronic shortage of hotel staff in peak season, and the actions were taken at a time of a growing national skilled worker shortage. None of the sacked workers had difficulty getting other work. One room attendant, Sue Young, who had worked for the hotel for 17 years, said “they’ve gone for cheap labour and all the locals are history”. IHG General Manager, Bill Sheppard, while claiming “empathy”, said “working for any major corporation there are no guarantees… IHG is seen as a preferred employer, being one of the largest hotel companies in the world, and we continue to have applicants every day coming to the hotel wanting to work there.” (Press, “Hotel workers quit over jobs”, by Debbie Jamieson, 6/11/2004, p.A15.)

[Decision number 200410058.]

Australia/US company buys lease for land for Quay Park Arena, Auckland

Quay Park Arena Management Trust, owned 55% by the Jacobsen family of Australia, 25% by John Paul Utsick of the U.S.A., and 20% by Kevin George Jacobsen of Australia, has approval to acquire 5.8 hectares of leasehold at Quay Street, Auckland for $11,969,400 from the Auckland City Council.

The OIC reports:

The Applicant has entered into a Heads of Agreement with the Auckland City Council and various other parties to develop and operate the Quay Park Arena (a multi-use indoor sports and entertainment arena on the subject property) for the term of a 40 year sub-lease to be granted in respect of the subject property by the Auckland City Council to the Applicant.

[Decision number 200410065.]

Kiwi Income Properties buys two properties on The Terrace, Wellington

Kiwi Income Properties Limited, owned by the Commonwealth Bank of Australia, as manager for Kiwi Income Property Trust, has approval to acquire 0.28 hectares comprising:

·        NGC House on 0.1629 hectares at 44 The Terrace, Wellington for $19,300,000; and

·        Intergen House on 0.1136 hectares at 50 The Terrace, Wellington for $4,050,000,

from AmTrust Pacific Properties Limited, owned by Michael and George Karfunkel of the U.S.A.

According to the OIC,

The Kiwi Income Property Trust (Kiwi) is a unit trust listed on the New Zealand Stock Exchange. The manager of Kiwi is Kiwi Income Properties Limited whose shares are owned by Colonial First State Property. The assets of Kiwi are invested in a diversified portfolio of prime office, retail and industrial assets located throughout New Zealand. The proposed acquisitions of NGC House (44 The Terrace), and Intergen House (50 The Terrace), subject to due diligence, are likely to improve the diversification of Kiwi’s property portfolio.

Colonial First State Property is a subsidiary of the Commonwealth Bank of Australia (owner of ASB Bank).

[Decision number 200410055.]

AMP NZ Office Trust buys Mobil on the Park and the BNZ Centre, Wellington

AMP NZ Office Trust, owned 30% by the Ronin Property Trust of Australia, 23.0688% by other shareholders in Australia, 1.08% by other overseas shareholders from “unknown” countries, and 45.8512% in Aotearoa, has approval to acquire:

·        Mobil on the Park, 35 Waring Taylor Street, Wellington for $71,000,000 from Navire Holdings Limited, owned 90% by Gunter Thiel of Luxemburg, 5% by Farhad Vladi of Germany, and 5% by Andreas Fellmann of Luxemburg [Decision number 200410061].

·        0.3674 hectares of freehold and 0.1967 hectares of leasehold at BNZ Centre, 1 Willis Street, Wellington for $75,000,000 from Willis Developments Limited, which has the same ownership as Navire Holdings Ltd [Decision number 200410062].

According to the OIC,

AMP NZ Office Trust (ANZO) is a unit trust listed on the New Zealand Exchange, and invests predominantly in prime and A-Grade CBD office properties in Auckland and Wellington. ANZO is managed by AMP Ronin Management Limited. The proposed acquisition of the Mobil on the Park [and of the BNZ Centre] is part of ANZO’s strategy to hold a high quality portfolio of prime commercial office properties thus optimising income and growth for ANZO’s investors.

[Decisions 200410061 and 200410062.]

Macquarie Goodman buys Mangere land for industrial estate

Macquarie Goodman Nominee (NZ) Limited of Australia has approval to acquire 26.5 hectares at 113 and 118 Savill Drive, Mangere, Auckland for $38,703,937 from Albany Industrial Property Limited of Aotearoa.

The OIC states:

The Applicant (co-owned by the Macquarie Goodman Industrial Trust (MGI) and the Macquarie Goodman Property Trust (MGP)), proposes to acquire the subject property for an industrial estate development. The Applicant advises that the property is an old industrial site with some buildings currently utilised for temporary storage and container storage.

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). 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).

Macquarie Goodman companies last received an OIC approval in Auckland in March 2004, which was for various exchanges in shareholding. See our commentary for that month for further details of what they owned at the time.

[Decision number 200410064.]

Gulf Harbour Investments buys more Gulf Harbour land for $1

Gulf Harbour Investments Limited, 100% owned in Singapore, has approval to acquire 0.84 hectares adjoining the foreshore at Gulf Harbour Marina, Whangaparaoa, Auckland for $1 from Auckland Property Group Limited of Aotearoa.

According to the OIC,

Gulf Harbour Holdings Limited, the previous shareholder in the Applicant, has undertaken developments in the Gulf Harbour, Whangaparaoa area including residential lot development, associated residential infrastructure, the Gulf Harbour Marine village waterway, the Gulf Harbour Town Centre and the Gulf Harbour Country Club.

The Applicant acquired the subject property pursuant to an exercise of an option in August 2003. The subject property is a section of land known as the Eastern Marina Carpark. The acquisition pursuant to the option was undertaken to ensure suitable carparking facilities could be provided for the Eastern Marina and that the other land owned could be developed to its optimal use. In December 2003 (following acquisition of the property but prior to the development commencing), all of the shares in the Applicant were acquired by a company now named Gulf Harbour Marina Holdings Limited, a New Zealand owned and controlled company, which is currently increasing the berthage capacity of the marina by 56 berths and developing additional marina facilities.

The acquisition was likely to ensure the continued development and expansion of the Gulf Harbour marina.

The ownership of Gulf Harbour Investments remains unclear: the OIC reports that it is both 100% owned in Singapore, and New Zealand owned. Gulf Harbour Marina Holdings Limited is, according to the New Zealand Companies Office, struck off.

[Decision number 200410056.]

Other rural land sales

·      Christopher Joseph Reid and Sarah Caroline Reid of the U.K. have approval to acquire 4.3 hectares at Orua Bay, Mahinepua, Northland for $956,250 from Kathleen Anne O’Brien of Aotearoa. The OIC states: “The Applicants are applying for New Zealand permanent residency under the Priority Occupations List - Work to Residence policy and propose to acquire the subject lifestyle property. The Applicants intend to construct a dwelling on the property and reside permanently in New Zealand. Dr Reid is a registered medical practitioner from the United Kingdom who has accepted a two-year offer of employment with the Whangaroa Health Services Trust, Kaeo, Northland, as a general practitioner. The Applicants advise that the job offer is on the Department of Immigration’s Priority Occupations List (a rural general practitioner). The Applicants are demonstrating their commitment to New Zealand through applying for and taking up New Zealand permanent residency.” [Decision number 200410049.]

·      James Cooper and Karen Draper of the U.K., have approval to acquire 158 hectares at Huia Valley Road, Hikutaia, Whangamata, Coromandel for $1,012,500 from Te Hue Land Trust of Aotearoa. According to the OIC, “The subject property consists of approximately 75% native bush and 25% arable land. The arable land has been farmed by the vendor organically comprising organic vegetables, orchards and a worm farm for the production of organic fertiliser. Part of the land is grazed by a neighbouring farmer. The Applicants propose that the current land use of organic farming and grazing will continue with their longer term plans including equine bloodstock breeding and the establishment of eco-tourism lodges. The Applicants are applying for New Zealand permanent residency under the Business Investor category and propose to reside permanently in New Zealand. The Applicants are demonstrating their commitment to New Zealand through applying for and taking up New Zealand permanent residency.” [Decision number 200410067.]

·      Pukeatua Farming Company Limited, owned 67.5% by Jane Buchanan of the U.K. and 32.5% by Andrew William Sherratt and Leanne Yvonne Sherratt of Aotearoa, has approval to acquire 32 hectares at State Highway 49, Karioi, Ohakune, Wanganui for $67,500 from David John Greenwood and Kathryn Mary Greenwood, and Douglas Wayne Wilson of Aotearoa. According to the OIC: “The Applicant currently operates a sheep and beef breeding and fattening operation on a 375 hectare property known as Pukeatua Farm. The Applicant proposes to acquire the adjoining subject property which is part of a subdivision undertaken by the vendor. The subject property is land-locked and will be amalgamated with the Applicants’ land. It is advised that the proposed acquisition will enable the Applicants’ farming operation to become more economic and achieve economies of scale.” [Decision number 200410050.]

·      Harry George Louis Mortimore of Canada has approval to acquire 263 hectares at North Road, Golden Downs, Nelson for $1,900,000 from Barry Lindon Higgins and Gloria Higgins of Aotearoa. According to the OIC, “The subject property is part of a larger parcel of land utilised for livestock grazing, crops and forestry by the vendors. The Applicant proposes to acquire the subject property as a farming business and relocate to New Zealand to reside permanently. The Applicant believes that the land has been conservatively managed and has received minimal labour and capital. The Applicant proposes to increase productivity through a more intensive farming operation involving the existing lucerne production and forestry, and through the establishment of approximately 7 hectares for raspberry production. The Applicant intends to lease the grazing land to a dairy farmer for grazing.” [Decision number 200410048.]

Summary statistics

All investments

This was a busy month with several significant takeovers. Again the value of investment approved in the year to May 2004 is considerably higher than for the previous May 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 considerably lower. By far the greatest part of the value of the approvals is for sale from one overseas investor to another.

Investment involving land

Gross sales of land approved by the OIC during the years to May have increased in area, though net sales are static. Refusals (above) have risen in number, area and value, but are still a tiny proportion of the total.

Compiled by:

Campaign Against Foreign Control of Aotearoa,

P. O. Box 2258 

Christchurch.