August 2005 decisionsKorean refused permission to buy Canterbury property Retrospective consent for Origin Energy to take control of Contact Energy Westpac acquires right to buy back Pacific Funding from Linvest for $2 billion TrustPower buys Mahinerangi land for hydro development ING/ANZ joint venture buys NBNZ Life Insurance and NBNZ Investment Services DCA Group buys Guardian Healthcare Group from PEP Thai group buys Duxton Hotels in Rotorua, Wellington, and Auckland Consortium buys 92,000 hectares forests from Carter Holt and Rayonier South Korean company purchases Rayonier NZ MDF AMP buys two Waikanae properties Britomart group buys Britomart Precinct property from Auckland City Council Bay of Islands property expanded with Mataka Station development U.K. couple buy Waihopai land for falcon protection $16.9m for Tauranga land for boat stacker, apartment project and development
This is the first month in which the newly formed Overseas Investment Office (OIO), part of Land Information New Zealand, has operated. Most of this month’s decisions (up to number 200520035) are still under the old Overseas Investment Commission which it replaces, but the new Overseas Investment Act 2005 came into force on 25 August 2005 and from that date on all decisions will be by the OIO rather than the OIC, and under the new legislation.
The month is also distinguished by one refusal, a huge retrospective approval overlooked when the takeover (Origin Pacific of Contact Energy) occurred, and a $2 billion transaction by Westpac which has the appearance of being tax-driven. There is also a sale of the biggest residential care chain, and sales of major forestry assets. Korean refused permission to buy Canterbury propertyHey-Suk Jang of South Korea has been refused approval to acquire 6.4 hectares at 124 Calder Road, Christchurch, Canterbury for $700,000 from Timothy Andrew Stevens and Dawn Jacqueline Stevens of Aotearoa.
According to the OIO,
The Applicant proposes to acquire the subject property as a permanent residence for herself and her family. The Applicant holds a New Zealand Work Permit and has resided in New Zealand since 30 November 2002. The Applicant is in the process of applying for New Zealand permanent residency under the Skilled Migrant category.
The Overseas Investment Office is not satisfied that the Applicant is likely to be granted New Zealand permanent residence.
[Decision number 200520042.] Retrospective consent for Origin Energy to take control of Contact EnergyOrigin Energy Limited, owned 90.1% in Australia, 4.55% in the U.S.A., 2.9% in the U.K. and 2.45% by “Unknown Overseas Persons”, has approval to acquire 100% of Contact Energy Limited, privatised state owned corporation, largest natural gas retailer and one of the largest electricity retailers and generators in Aotearoa. In fact it only acquired 51.36% for $1,679,109,945. Though it wanted 100%, its offer to shareholders other than outgoing controlling shareholder, Edison Mission Energy, was rejected and it had to be satisfied with the controlling 51.36% shareholding.
The very public change in ownership was agreed between Origin and Edison in July 2004, but OIC approval was apparently overlooked by both the company and the OIC until CAFCA asked the OIC whether it had given its approval. This is therefore a retrospective approval, indicating just how perished is the OIC’s rubber stamp. The takeover was illegal for some months until this decision rectified it. (For more details of this incident see “First Ever Conviction of Foreign Landowner – but Huge TNC Transgressions Go Untouched”, by Murray Horton, Foreign Control Watchdog 110, December 2005, or http://www.converge.org.nz/watchdog/10/03.htm.)
The sensitivity of the failure of OIC oversight was emphasised further by the fact that large areas of land – for which additional approval criteria apply – are involved in the change in ownership. Contact owns 8,521 hectares of freehold land as follows:
· 40 hectares at 68A Bairds Road, Otara, Auckland; · 1,263 hectares at State Highway 1, Wairakei, Taupo, Ohaari Road, Broadlands, Reporoa, and Forest Road, Mokau, Waikato/Bay of Plenty; · 92 hectares at Breakwater Road, New Plymouth, East Road, Stratford, Taranaki; and · 7,126 hectares at Lake Hawea, Clyde, Roxburgh, Upper Clutha and Lower Clutha, Otago.
It also owns 784 hectares of leasehold at Ohaari Road, Broadlands, Reporoa, State Highway 1, Wairakei, Taupo, Bay of Plenty.
Contact Energy Limited was previously owned as follows: · 51% – Edison International Inc of the U.S.A. · 11.06% – minority shareholders in U.S.A. · 12.76% – minority shareholders in Australia · 4.23% – minority shareholders in the U.K. · 20.95% – minority shareholders in Aotearoa
The OIC states:
Edison Mission Energy (EME), through its subsidiaries, was the cornerstone shareholder in Contact Energy Limited (Contact), holding 51.2% of the voting securities. EME decided to sell all of its assets held outside of the United States of America including its shareholding in Contact. The sale of its shareholding in Contact was by way of a competitive tender. The Applicant, Origin Energy Limited (Origin), was the preferred bidder and acquired EME’s shareholding in Contact. Origin then made a full takeover offer for the remaining 48.8% of the shares in Contact. Under the takeover offer Origin acquired a further 0.16% of the shares in Contact. The acquisition represented an opportunity for Origin to develop a more significant presence in New Zealand. It also complemented Origin’s existing investment in New Zealand by presenting Origin with an opportunity to enter the retail and generation markets in New Zealand. These markets will provide Origin’s existing New Zealand gas exploration and production business with a natural hedge for their output. Vertical integration of the exploration and supply of gas will improve the economics of investing in further exploration and will provide greater incentives to Origin to commit resources to such activities.
Contact is listed on the New Zealand Stock Exchange and is the largest wholesaler and retailer of natural gas and one of the largest generators and retailers of electricity in New Zealand. Contact generates approximately 30% of New Zealand’s electricity through its ten power stations located in New Zealand.
For more on Contact Energy, see “Electricity reforms and Contact Energy Ltd”, by Sue Newberry and Bill Rosenberg, Foreign Control Watchdog 108, April 2005, or http://www.converge.org.nz/watchdog/08/06.htm.)
[Decision number 200520032.] Westpac acquires right to buy back Pacific Funding from Linvest for $2 billionWestpac Banking Corporation of Australia has approval to acquire “specified securities” of Pacific Funding” from Linvest LP of Germany for an amount suppressed by the OIC – but see below.
According to the OIC,
The Applicant will provide finance to Pacific Funding, a New Zealand incorporated unlimited liability company, which it partly owns. In order to protect its position, in certain circumstances it may wish to ensure that it has full control of Pacific Funding by exercising the option to acquire specified securities in Pacific Funding from Linvest LP.
It is therefore apparently a pre-emptive right to resume control of these assets.
This gives some hint (but not much more) of what was going on in last month’s approval of the reverse transaction: for Linvest LP of Germany to acquire “certain specified securities” in Pacific Funding from Westpac Banking Corporation, for an amount that was also suppressed. See our commentary for that month for further details.
Although the amount of the acquisition is suppressed, it can be deduced from the totals for the month provided by the OIO: it is exactly $2 billion. This also allows us to estimate the amount of last month’s approval: between $1.9 billion and $2 billion.
According to the New Zealand Companies Office record for Pacific Funding, it is a registered company with three shareholders: Linvest LP, with 20,044,118 shares, and Tasman Funding No. 1 and Tasman Funding No. 2, each with just 125,000 shares. Both the Tasman companies have registered offices in the PWC Tower in Auckland, but are owned by Infrastructure Australia (No.1) Limited with an address of “C\-Westpac Group Secretariat”, Sydney. So they are Westpac companies. Though the shareholding of Pacific Funding is overwhelmingly held by Linvest, the directors of Pacific Funding and the two Tasman companies are identical. Three of the four directors are Westpac executives.
Linvest, though described as German by the OIC, is registered in the Cayman Islands.
A good guess is that the unusual nature of these transactions is for tax-avoidance purposes.
[Decision number 200520028.] TrustPower buys Mahinerangi land for hydro developmentTrustPower Limited has approval to acquire 854 hectares at 453 Eldorado Track, Mahinerangi, Otago from Michael Stephen Barclay and Elena Marie Barclay and Shand Thomson Nominees Limited as trustees of the MS and EM Barclay Family Trust of Aotearoa . The land “includes/adjoins land … which is deemed a heritage or historic area; and … includes/adjoins land … which is provided as a reserve, a public park, for recreation purposes, or a private open space”.
The price of the acquisition has been suppressed by the OIC, but as for the above Westpac approval, it can be deduced from the totals for the month provided by the OIO: it is $2,896,250.
TrustPower is owned 23.77% by the Alliant Energy Corporation of the U.S.A. which has a formal agreement to work with the largest shareholder, 35.18% owner, Infratil Limited (formerly known as Infrastructure and Utilities NZ Limited). Together they have three of the six board members. The remainder is owned 28.56% by the Tauranga Energy Consumers Trust of Aotearoa and 12.49% by minority shareholders in Aotearoa. Infratil is registered in Aotearoa but is managed by Morrison & Co which is 25% owned by Lend Lease of Australia, making Morrison an overseas company (see http://www.lendlease.com/llweb/llc/main.nsf/all/news_19990304_2 and our commentary on the OIC’s March 1999 decisions for further details).
The OIC states:
TrustPower currently owns and operates the Waipori Hydroelectric Power Scheme (Waipori) situated 60 kilometres southwest of Dunedin. Waipori comprises a network of four dams and power station on the Waipori River and produces 190 giga watt hours (GWh) of electricity per annum. Waipori uses water principally from the Deep Stream and Upper Waipori River catchments. The principal storage for Waipori is Lake Mahinerangi, an artificial lake formed by the construction of a 34 metre high concrete arch dam.
TrustPower advises that it has been recognised that there is a fall of over 315 metres between the existing discharge location for the Deep Stream diversion, and where this discharge enters Lake Mahinerangi, providing potential energy for further electricity generation of approximately 23 GWh per annum. TrustPower proposes to acquire the subject land as part of TrustPower’s proposed Deep Stream Enhancement Project to increase electricity generation.
[Decision number 200520024.] ING/ANZ joint venture buys NBNZ Life Insurance and NBNZ Investment ServicesING (NZ) Holdings Limited, owned 51% by Ing Groep N.V. of the Netherlands, and 49% by the ANZ Group, has approval to acquire NBNZ Life Insurance Limited and NBNZ Investment Services Limited for $158,000,000 from ANZ National Bank Limited, which is owned 95.67% in Australia and 4.33% in Aotearoa.
According to the OIO,
In April 2002 ING Groep NV (ING Group) and Australia and New Zealand Banking Group Limited (ANZ Group) entered into a joint venture arrangement in respect of their Australasian funds management and insurance businesses. The New Zealand component of the joint venture is currently operated through two New Zealand subsidiaries, ING (NZ) Limited (ING NZ) and ING Investment Services (ING IS) who are both wholly owned subsidiaries of the Australian joint venture company, ING Australia Limited (ING Australia) which is 51% owned by ING Group and 49% owned by ANZ Group.
ANZ National Bank Limited (ANZN) (a wholly owned subsidiary of ANZ Group) has agreed to contribute its National Bank branded funds management, life insurance and general insurance (including credit card insurance) businesses to the joint venture, by selling the businesses to the joint venture. ANZN acquired its National Bank branded insurance and funds management businesses as part of its acquisition of The National Bank of New Zealand Limited in December 2003. The terms of the ING Group and ANZ Group joint venture required ANZ Group to divest the assets that comprise these businesses so that it did not compete with the joint venture. [Decision number 200520043.] DCA Group buys Guardian Healthcare Group from PEPDCA Group Limited, owned 100% in Australia, has approval to acquire the Guardian Healthcare Group Limited for $300,000,000 from Pacific Equity Partners Fund II managed by Pacific Equity Partners Pty Limited, owned 82% in the U.S.A. and 18% in Australia.
The purchase includes 10 hectares of land: · 5.5 hectares at 921 Tararu Road, Thames, Coromandel; and · 4.4 hectares at 19 Liston Avenue, Taupo, Waikato.
The OIO states:
The Applicant, DCA Group Limited (DCA), is an Australian incorporated company which is listed on the Australian Stock Exchange. DCA is one of the largest private rest home and hospital operators in Australia. DCA’s principal activities include the ownership and operation of aged care businesses, primarily aged healthcare centres and diagnostic imaging businesses, primarily radiology practices.
DCA, or a wholly owned subsidiary of DCA, proposes to acquire all of the issued share capital of Guardian Healthcare Group Limited (Guardian). Guardian’s principal business is the provision of healthcare and accommodation to older New Zealanders through its nursing home, retirement village and medical alarms businesses. DCA advise that the acquisition of Guardian is a natural fit with DCA’s business and aspirations.
Investment company Pacific Entity Partners bought out the formerly locally owned Guardian in 2004 (see our commentary for November 2004 for further details). The OIC then described PEP as “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.” Guardian was at that time “New Zealand’s largest private owner/operator of rest homes and hospitals”. Since then, Guardian has taken over Care and Independence rest homes for $31,540,000, in June 2005 – see our commentary for that month for further details.
PEP bought Guardian in 2004 for $110 million so has more than doubled its money in less than a year. If there was any doubt about its rationale for buying Guardian, that has now been dispelled. In 2004, the OIC stated that the takeover would be likely to result in the following benefits: (a) the creation of new employment opportunities; (b) the introduction of development capital; and (c) added efficiencies and market competition. In the event it has led to continued employment disputes, extraction of capital from the aged care sector, and reduced competition.
[Decision number 200520041.] Thai group buys Duxton Hotels in Rotorua, Wellington, and AucklandAmora Group Pty Limited, owned by Tanapun Siriphatrawan and Chatkawe Siriphatrawan of Thailand, has approval to acquire Zeus Properties Limited, Neptune Properties Limited, Plaza International Hotel Limited, and Atlas Holdings Limited for $52,500,000 from Low Keng Huat (Singapore) Limited of Singapore.
The purchase includes 2.5 hectares of leasehold at 366 State Highway 3, Mourea, RD4, Rotorua, Bay of Plenty.
According to the OIO,
The Applicant is the owner of hotels in Australia and Thailand including the Rydges Amora Beach Resort, Phuket, the Rydges Amora Tapae, Chiangmai, the Rydges Riverwalk Hotel, Melbourne, and the Rydges Jamison in Sydney. The Applicant now proposes to expand its portfolio through the acquisition of the Duxton Hotels in Rotorua, Wellington, and Auckland. The proposed acquisition will enable the Applicant to establish a presence in New Zealand and provide geographic expansion.
[Decision number 200520044.] Consortium buys 92,000 hectares forests from Carter Holt and RayonierIn the first two decisions of the OIO, Matariki Forests, owned by “a Consortium, the majority participants of which are Rayonier Inc of the U.S.A. and RREEF Infrastructure Investments being the global arm of Deutsche Asset Management (Australia) Limited of Australia”, has approval to acquire:
· 40,779 hectares of freehold and 12,686 hectares of leasehold in the Bay of Plenty/Coromandel, Gisborne/Hawkes Bay, and Northland for $435,000,000 from Carter Holt Harvey Limited. The land adjoins and/or includes a lake, land held for conservation purposes, land deemed a heritage or historic area, and land provided as a reserve, a public park, for recreation purposes, or a private open space. [Decision number 200520036.] · 37,838 hectares of freehold and 1,084 hectares of leasehold in Manawatu, Nelson/Marlborough, Otago and Southland for $269,900,000 from a local subsidiary of one of its members, Rayonier New Zealand Limited, owned by Rayonier Inc of the U.S.A. The land adjoins and/or includes land held for conservation purposes, and land provided as a reserve, a public park, for recreation purposes, or a private open space. [Decision number 200520037.]
Carter Holt Harvey Limited is owned as follows according to the OIO: · 50.5% – International Paper Company Limited, U.S.A. · 5% – Franklin Resources Inc, U.S.A. · 18.1% – Persons who may be “overseas persons” · 5.7% – minority shareholders in Australia · 20.7% – minority shareholders in Aotearoa
According to the OIO,
The Applicant is a joint venture between Rayonier Inc. (Rayonier) and RREEF Infrastructure (RREEF). RREEF is part of Deutsche Asset Management (Australia) Limited (DeAM) which in turn is part of Deutsche Bank AG. The Applicant has been selected by Carter Holt Harvey Limited (CHH) as the successful bidder in respect of certain forests and other assets owned by CHH or its subsidiaries.
The Applicant also proposes to acquire certain forests and other assets owned by Rayonier New Zealand Limited (RNZ), a subsidiary of Rayonier. RNZ’s equity contribution to the Applicant will be via proceeds of the sale of the RNZ assets to the Applicant. RNZ is proposing to dispose of its assets to the Applicant to enable the joint venture to be created and for the Applicant to acquire the CHH assets, and to spread the risks associated with holding the assets with other investor.
Both transactions will result in the Applicant being the third largest forest estate manager in New Zealand, managing 143,183 hectares of net productive area across New Zealand, comprising mainly radiata pine but with douglas fir as a substantial minor species, of which 61,964 hectares is freehold land. The transactions are likely to result in enhanced scale and diversification of the forestry assets.
The proposal includes the creation of walkways, under the New Zealand Walkways Act 1990, over two small tracts of the property. The walkways are expected to form part of a nationwide hiking trail network known as Te Araroa. South Korean company purchases Rayonier NZ MDFDongwha Hong Kong International Co. Limited, owned by Seung Myung Ho (41.92%), Seung Eun Ho (8.69%), Seung Sang Bae (5.54%) and 43.85% by minority shareholders, all of South Korea, has approval to acquire Rayonier NZ MDF Limited for $58,513,750 (“based on a conversion of US$ 40 million”) from Rayonier Wood Products LLC of the U.S.A. The purchase includes 128 hectares at Pioneer Highway (State Highway 1), Mataura, Southland.
According to the OIC,
The Applicant is a wholly owned subsidiary of Dongwha Holdings (Dongwha), a Korean wood products company. Dongwha’s interests outside of Korea include forestry plantations in Indonesia, a saw milling operation in Australia, a medium density fibreboard (MDF) manufacturing facility in Malaysia, and sales offices in China and the United States of America. Dongwha’s core business activities includes the manufacture of wood-based panels, surface materials, laminated boards and building materials with a focus on high value added products through vertical integration.
Dongwha proposes to acquire the shares in Rayonier MDF New Zealand (Rayonier MDF) a company which owns the subject land upon which Rayonier MDF operates a MDF manufacturing facility. The acquisition will provide Dongwha with access to an additional 160,000 cubic metres of MDF product that it will either utilise in its value added production facilities in Korea or export through its distribution network.
[Decision number 200520034.] AMP buys two Waikanae propertiesAMP Property Opportunity Fund Limited and AMP Property Opportunity Charitable Fund Limited joint venture, owned 37.0092% in Australia and 62.9908% in Aotearoa, has approval to acquire two blocks of land at Waikanae, Wellington: · 47 hectares at State Highway 1, Waikanae for $6,750,000 from Kaitawa Properties Limited owned by Jacqueline Barbara Miskell and Terence Charles Brandon of Aotearoa as trustees of the JB Kebbell Trust [Decision number 200520029]; and · 13 hectares at State Highway 1, Waikanae for $4,050,000 from Anthony Harold Kebbell, Jacqueline Barbara Miskell, and Rosemary Marion Bewick of Aotearoa [Decision number 200520030].
In both cases, according to the OIC,
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 nominate a company to complete the acquisition of the [two blocks of land]. The proposed transaction represents an opportunity for the Applicant to invest in a property development, which meets the investment objectives of the Applicant.
The Applicant proposes to develop a residential subdivision, in excess of 300 lots, with recreational areas, the construction of a small town centre, and the construction of a high quality resort style retirement village. Britomart group buys Britomart Precinct property from Auckland City CouncilBritomart Group Limited, owned 40% in Australia, 40% by Whitecloud Britomart Limited of Aotearoa and 20% by Phillimore Properties Limited of Aotearoa, has approval to acquire 0.03 hectares at Quay and Gore Streets, Auckland for $1,012,500 from the Auckland City Council.
Britomart Group similarly bought properties in June and October 2004 for the Britomart Precinct, which lies between Britomart Place, Quay Street, Queen Street and Customs Street, Auckland. The October 2004 purchase was also from the Auckland City Council. For further details of both the purchases and the Britomart Group, see our commentary for those months.
According to the OIC,
Under the Development Deed for the Britomart Precinct, the Applicant is required to undertake extensive renovation and refurbishment works to preserve and enhance the heritage qualities of the buildings concerned. In addition, building conservation covenants are to be registered in order to preserve and record the refurbishment and renovation. The refurbishment of the subject property which is currently utilised as commercial office space is likely to supplement and complement the Britomart Precinct.
[Decision number 200520025.] Land for forestry· Enki Limited, owned by Ellen Jo Myers of the U.S.A., has approval to acquire 367 hectares at Golden Valley Road, Waihi, Coromandel for $1,068,750 from Montrose Forest Limited, owned by Robert John Hill and Ross Melvin Stewart of Aotearoa. According to the OIO, “The Applicant proposes to acquire the subject land which was established in pinus radiata forestry in 1993. Within the land there are several areas (totalling approximately 6.99 hectares) of native bush. These areas are the subject of a registered covenant to preserve the native bush situated on the land. Following harvesting of the forest the Applicant proposes to plant a second rotation. The Applicant also proposes to acquire a 20% shareholding in Montrose Forestry Group Limited, a company formed by adjoining land owners to contract manage and harvest a forest, including the subject land, comprising a total of 161.9 hectares.” [Decision number 200520040.] · Grandy Lake Forest (NZ) Limited, owned 33.34% by Eberhard Gemmingen and 33.33% each by Albrecht Gemmingen and Wolf-Eckart Gemmingen, all of Germany, has approval to acquire 42 hectares at Waingake Road, Gisborne for $138,313 from Ranui Station, owned 37.5% by Prudence Elizabeth Lethbridge Pyke, Michael John Willock, and John Jeffered Monckton; 37.5% by Prudence Elizabeth Lethbridge Pyke; and 25% by John Jeffered Monckton, all of Aotearoa. The OIC states: “The Applicant, who acquired a 736 hectare property known as Te Puru Station in July 2004 for a forestry development, has entered into a boundary exchange agreement with an adjoining landowner whereby the adjoining landowner will acquire 17.5 hectares of grazing land from the Applicant and the Applicant will acquire 42 hectares of afforested land that is planted in forestry from the adjoining landowner. The forest will be managed in conjunction with the Applicant’s forestry operation on Te Puru Station.” See our commentary for July 2004 for further details of Grandy’s previous and other approvals. [Decision number 200520027.] · Pan Pac Forest Products Limited, owned 87% by Oji Paper Co Limited and 13% by Nippon Paper Industries Company Limited, both of Japan, has approval to acquire 0.7 hectares at State Highway 2, Whirinaki, Hawkes Bay for $14,535 from Stanley David Evans of Aotearoa. The OIO states: “The Applicant proposes to enter into a land exchange transaction where the Applicant will acquire a 0.7013 hectare strip of land adjacent to the Applicant’s Whirinaki mill. In exchange the vendor will acquire 2.0272 hectares from the Applicant. The Applicant’s Whirinaki mill site is the Applicant’s main processing plant and the location of its head office and administration centre. Currently access to this site is by way of a single entrance off State Highway 2 that leads to the centre of the site. The acquisition of the strip of land will improve access and utilisation of the site by providing a heavy vehicle access from the road along the southern boundary of the Applicant’s property leading to the rear of the plant. The proposal is likely to improve traffic safety and noise levels in the vicinity of the existing main entrance.” [Decision number 200520039.] Land for wine· Catalina Sounds Limited, owned 22.5% each by Matthew Alfred Farrah, Trent Birkett and Neil Douglas Gray, and 20% by Guy David Newman, all of Australia, and 12.5% by Anthony Louis Moore of Aotearoa, has approval to acquire 36 hectares at Waihopai Valley Road, Marlborough for $1,518,750 from Alexander Phillip Henderson and Robyn Maree Henderson of Aotearoa. According to the OIC, “the Applicant proposes to acquire the subject property which is currently farmed by the vendor as part of a larger sheep and beef unit. The Applicant proposes to develop 26.52 plantable hectares of the land as a vineyard to produce Sauvignon Blanc wine for the Australian market.” [Decision number 200520033.] Bay of Islands property expanded with Mataka Station developmentMLP LLC, owned 10% each by Brian Stebbins, The Booth Family Trust, Gilbert E LeVasseur, Jr, and Louis Simpson, all of the U.S.A., and 60% by Peter Charles Cooper of Aotearoa, has approval to acquire 55 hectares at Rangihoua Road, Purerua Peninsula, Bay of Islands, Northland for $3,937,500 from Mataka Limited owned by William Norman Birnie of Aotearoa.
According to the OIC,
The Applicant owns farmland in the Bay of Islands comprising 338.2812 hectares known as Mountain Landing. Mataka Limited (Mataka) is the developer of the land known as Mataka Station adjacent to Mountain Landing. The Mataka development involves the subdivision of Mataka Station land into up to 30 house sites, and heritage, conservation and cultural initiatives. Mataka is the current owner of the 55.05 hectares of land that the Applicant is proposing to acquire from Mataka.
The land includes and/or adjoins both the foreshore and land which is deemed a heritage or historic area.
On 18 February 2005, a resource consent was granted by the Far North District Council in respect of a 39 lot subdivision of Mountain Landing. The Applicant intends to develop Mountain Landing into an integrated farm and residential lifestyle community, including a high-quality, lifestyle subdivision, with access to the coastal amenities afforded by its location. Significant conservation initiatives also underlie the proposed development. The Applicant plans to seek resource consent to build a lodge in mid-2006, with completion estimated to be completed at the end of 2007.
The sale of the land will result in legal boundaries being generally consistent with natural ridge lines as between Mountain Landing and Mataka Station. If consent is granted to the acquisition of the land from Mataka, the Applicant will construct an equestrian centre in late 2006 or 2007. The acquisition of the land will also enable the Applicant to progress plans to develop a vineyard on the land to be acquired. In addition, the sale will provide benefits to both the Applicant and Mataka. It has been agreed that if the sale proceeds, existing and future purchasers of Mataka house site lots will have access to the lodge and equestrian facilities on Mountain Landing, and Mountain Landing lot owners will have access to Mataka riding trails. The acquisition will also permit the Applicant to control and manage the entire catchment of the Te Puna wetlands area, which is only now 75% controlled by the Applicant. The Applicant intends to increase fencing around the perimeter of the wetlands to protect the area from stock intrusion, thus enhancing the restoration of the wetlands.
[Decision number 200520026.] U.K. couple buy Waihopai land for falcon protectionNicholas Christopher Fox and Barbro Ingrid Margareta Fox of the U.K., have approval to acquire 6.6 hectares at 3339 Waihopai Valley Road, Marlborough for $325,000 from Mark Bruce Shaskey and Gabrielle Jane Shaskey of Aotearoa.
The OIC states:
The Applicants propose to acquire the subject property, which is currently a lifestyle property, to use as a base for an extensive project into the conservation of the New Zealand Falcon and the utilisation of the New Zealand Falcon to protect grapes growing on Marlborough vineyards from bird damage. The project will entail the expansion of falcon numbers on the Wairau Plain area and is likely to result in the mitigation of the effects of introduced predators on falcons in the Marlborough high country and the mitigation of the effects of introduced birds on grapes in the vineyards.
The Applicants proposal involves the survey of, and conservation work in respect of the New Zealand Falcon in its natural habitat which covers a vast area of Marlborough hillside of approximately 4,000 square kilometres.
The Applicants advise that the subject property is a suitable base for the project being near to the Falcon’s natural habitat and also far enough away from human habitation not to interfere with activities occurring in more habitated areas. The project will rely upon horse travel in some terrain and the subject property provides land for horse grazing.
The project will be known as “Falcons for Grapes” and “will establish a demographic monitoring programme for New Zealand Falcons in the Marlborough region and develop an alternative method of reducing bird damage to Marlborough vineyards”.
[Decision number 200520023.] $16.9m for Tauranga land for boat stacker, apartment project and developmentChannor NZ Limited, owned 65% by Aidan Joseph Harrison and 35% by Kathleen Carmel Harrison, both of Ireland, has approval to acquire 1.8 hectares at 50B Cross Road, Sulphur Point, Tauranga, Bay of Plenty for $16,875,000 from Cross Road Properties Tauranga Limited of Aotearoa.
According to the OIC,
The Applicant proposes to acquire the land and complete the consented to but uncompleted boat stacker and apartment project (Stage 1 of the development) and redevelop the remainder of the land into an intensified multi-use cluster development catering for commercial, industrial, residential and recreation needs of the community (Stage 2 of the development). The redevelopment of the land will provide an intensive cluster of marine/export offices and service providers, business providers, business services, parking, conference, retail and residential facilities.
[Decision number 200520022.] Other rural land sales· Matai Pacific Limited, owned 75% by the Lennox Hannay 1992 Trust and 25% by W L Hannay, both of the U.K., has approval to acquire 28 hectares at 1027 Old Coach Road, Te Puke, Bay of Plenty for $4,625,000 from Coachmans Orchard Limited owned by Harold Paul Fitches and Annette Valerie Fitches of Aotearoa. According to the OIC, “the Applicant received consent in December 2001 to acquire a 159.446 hectare property situated near Te Puke to undertake a kiwifruit orchard development on approximately 60 hectares of that land. To supplement that development the Applicant proposes to acquire the subject property which is a fully producing kiwifruit orchard. The acquisition is likely to supplement the cashflow requirements of the orchard development and enable the Applicant to bring the development programme forward.” See our commentary for December 2001 for further details of the earlier purchase. [Decision number 200520035.] · Nicolas Georges Marc Bujes and Pierre-Emanuel Willy Gerard Bujes of France have approval to acquire 25 hectares at Turn Point, Pelorus Sound, Marlborough for $365,625 from Colin Richard Spencer and Gaylene Alice Spencer of Aotearoa. According to the OIO, “The Applicants propose to acquire the subject property, which is primarily planted in eight year-old forestry, and intend to intensify the use of part of the land by growing organic aromatic and culinary herbs and seeds with a focus on South East Asia and China as export markets. The Applicants also propose to develop a fishing lodge and jetty on the property.” [Decision number 200520038.] · Co-Investor Trust, owned by Roger Keith Sharp and Christine Catherine Sharp both of Aotearoa has approval to acquire 29 hectares at Malaghans Road, Queenstown, Otago for $2,800,000 from North Ridge Estate Limited (formerly Newco 1 Limited) of Aotearoa which is beneficially owned by Roger Sharp of Aotearoa. The OIC states: “The subject property is owned by North Ridge Estate Limited, whose shares are owned by Equity Trust Singapore Limited, an overseas person. Mr Roger Sharp, a New Zealand citizen residing in Australia, is the beneficial owner of the Applicant. Mr Sharp could have acquired the property in his own name without the need for approval but chose to structure the acquisition via an overseas superannuation fund for financial planning reasons.” The property was originally acquired by “Newco 1 Ltd” in 2003 – see our commentary for January 2003 for further details. “Mr Sharp has decided that the size of the property is too large for his family. He now intends to sell the property to his Australian family trust (the Applicant). The Applicant will carry out a subdivision subdividing the property into three lots with two lots being on-sold on the open market. The third lot (comprising approximately 5.769 hectares) will be retained by the Applicant.” [Decision number 200520031.] Summary statisticsAll investments The value of investment approved in the year to August 2005 is almost the same as for the previous August 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 $1 billion lower. As usual, by far the greatest part of the value of the approvals ($3.2 billion out of $3.3 billion) is for sale from one overseas investor to another.
There was one retrospective approval – a huge one, Origin Energy taking control of Contact Energy for $1.7 billion for 51.36% (which appears to be described by the OIC as a consideration of $3.3 billion for 100%). This also involved over 9,000 hectares of freehold and leasehold land.
There was also one refusal – only the second in 2005.
Investment involving land Gross sales of land approved by the OIC during the years to August have fallen in area, though net sales have risen. Refusals are considerably below 2004, but even that was still a tiny proportion of the total.
*In addition there was 1 retrospective approval granted during the month. This involved a gross consideration of $3,300,000,000 (net $691,350,000), gross freehold land area of 8,521 hectares (1,785 hectares net) and gross leasehold land area of 784 hectares (164 hectares net)..
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Compiled by: Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
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