November 1999 decisions

Singapore Changi Airport Enterprise Pte Ltd, owned by the Government of Singapore, has approval to acquire 7.14% of Auckland International Airport Ltd from the North Shore City Council for $87,026,100. The sale raises the overseas ownership of the largest and most important airport in Aotearoa from 21.33% to 28.47%, taking it over the 25% threshold to make it officially an overseas company. North Shore City Council offered its share in the airport by tender and Singapore Changi Airport Enterprise was successful. The airport includes 1,501 hectares of land at Manukau Harbour.

“Singapore Changi Airport Enterprise is a subsidiary of a Singapore Government Authority and provides consulting services on airport planning, development and operations in Singapore and other countries.”

The company is also aggressively chasing other shareholders, including Auckland City’s 25.8%.

There appear to be no concerns about strategic aspects of the sale. Auckland International Airport is potentially – if not now – a significant international hub for the South Pacific region. In that sense it is in competition with Changi, which certainly sees itself as a hub for Southeast Asia and perhaps the Pacific. So there is a conflict of interest in its ownership of Auckland International Airport. Why would Changi want to boost Auckland International Airport in competition with itself? Yet the status of Auckland International Airport has major economic and social implications for the Auckland region and beyond.

Westpac buys more mortgages from the Housing Corporation

The Home Mortgage Company Ltd and its parent, the Westpac Banking Corporation, has approval to acquire further “loans and associated securities” (i.e. mortgages) from the Housing Corporation of New Zealand. The price paid has been suppressed.

“The sale by the Housing Corporation of these loans and agreements is consistent with Government policy which inter alia requires the ongoing divestiture of loan assets.”

Given that policy was due to change with a change of government, it is notable that this was approved on 10/11/99, only a little over a fortnight before the General Election on 27/11/99.

L. and M. Mining buys Perilya Mines and the Earnscleugh Gold Project

L. and M. Mining Ltd has approval to acquire Perilya Mines (NZ) Ltd for a suppressed amount. The sale includes 2,608 hectares of land at Earnscleugh, near Clyde, Central Otago, which is the Earnscleugh Gold Project, and which L. and M. Mining intends to continue and expand.

L. and M. is ultimately owned 33.34% by Kwok Wai Chiu of Hong Kong, 33.33% by Werner Muller of Switzerland, and 33.33% by Geoff London of the U.K. However, more detail on the ownership of the company was explained in February 1997 when Skellerup Group, by then owned by the rapidly failing Maine Investments Ltd, sold its subsidiaries Lime and Marble Ltd and DML Mining Ltd to Auriferous Mining Ltd for $4,600,000. Auriferous is incorporated in the tax-haven, the British Virgin Islands, and is owned equally by three companies. They are Tangent International Ltd whose major shareholder is Werner Muller, Campanie International Holdings Inc whose major shareholder is Kwok Wai Chiu, and Rysaffe Trustee Company (CI) Ltd as trustee for Geoff London. The OIC said that “Auriferous is a newly incorporated company which has been established specifically to invest in international alluvial gold mining business. … Auriferous intends to devote significant financial resources to the development of its mining business in New Zealand.” For further background on L. and M., see our commentary for that month.

For background on Earnscleugh and Perilya, see our commentary on the April and November 1998 decisions. For other purchases by L. and M., see the September 1999 decisions.

Kirin of Japan increases its shareholding in Lion to 47.4%

Kirin Brewery Company Ltd of Japan has approval to acquire up to 47.4% of Lion Nathan Ltd, an increase from its current 45%. It will cost Kirin nothing: Lion is buying back some of its shares, and since Kirin has decided not to sell any, its shareholding will rise as a percentage of the total. See our commentary on the April 1998 decisions for details of the original takeover.

The company owns five hectares of land at Khyber Pass, Newmarket, Auckland.

Aral of Singapore and Hong Kong buys rest of Whangaparoa shopping centre

Aral Property Holdings Ltd, which is 50% owned by investors in Singapore and 50% in Hong Kong, has approval to acquire the remaining 50% of the Pacific Plaza Shopping Centre in Whangaparoa, Auckland that it does not already own. It is buying it from Cachinal Investments Ltd of Aotearoa for $12,750,000.

Universal Homes buys more land for subdivision in North Shore, Auckland

Universal Homes Ltd owned 73% in Singapore, and 27% by China Everbright Holdings Ltd of China, has approval to acquire three hectares of land at Kyle Road, Greenhithe, North Shore, Auckland, for $1,650,000. According to the OIC, Universal Homes is “a predominant player in the Auckland housing market, and is continually searching for land with a view to development to meet the demands of the population.” It will subdivide the land and build houses on it.

Tiong firm, Neil Construction, buys Waitakere land for development

Neil Construction Ltd, owned by Neil Holdings Ltd, itself owned by the Tiong Family of Malaysia, has approval to acquire 20 hectares of land at Christian Road, Swanson, near Henderson, Waitakere City, Auckland for $2,475,000. It will be used for a housing subdivision. The last such purchase by Neil Construction was in June 1999.

McDonald’s Lime buys extends Oparure Quarry near Otorohanga, Waikato

McDonald’s Lime Ltd has approval to acquire six hectares of land at Oparure near Otorohanga, Waikato, for $85,500. The land adjoins its Oparure Quarry and the land, which contains suitable limestone, will be used to extend the quarry. According to the OIC, the company is owned 39.3% by the Schmidheiny Family of Switzerland, 32.7% by “unknown persons”, and 28% by Broken Hill Proprietary Company of Australia; however it puts the land’s overseas ownership after the purchase at 100%. As at February 1998, McDonald’s Lime was 72% owned by Swiss-owned Milburn New Zealand Ltd.

Craigpine Timber Ltd, which is owned 49.5% owned by Donaghy’s Ltd of Aotearoa and 50.5% by members of the Black family of Australia, the U.K. and Aotearoa, has approval to acquire four hectares of land at Winton-Hedgehope Highway, Winton, Southland, for $50,625. Craigpine “is a Southland based forestry company with in excess of 2,500 hectares of timber plantations within the region. Craigpine also operates a sawmill operation at Winton, which processes the produce from its timber plantations for both the domestic and export markets.” This land will “provide a buffer zone around the Winton sawmill and may also be used for future forestry planting”.

The company’s last purchase was in May 1999, when it bought 590 hectares of land at Fortification, RD 1, Wyndham, Southland, for $1,012,500. The members of the Black family are G.L.S. Black of Australia (with 21.82% of Craigpine), N.M. Guest of the U.K. (9.6%), Q.J.S. Black of Australia (9.49%), M.C. Atkinson of Aotearoa (4.90%), and A.B.S. Black of Australia (4.70%). The Black family and Craigpine also own farms and a sawmill in Canterbury.

Other land for forestry

• New Zealand Plantation Forest Company Ltd, owned 30% each by Chuetsu Pulp and Paper Co. Ltd, Hokuetsu Paper Mills Ltd, Marusumi Paper Co. Ltd, and 10% by Marubeni Corporation, all of Japan, has approval to acquire 200 hectares of forestry right at Tipene South Block, Mihirata Road, Motatau, Northland from Te Pene Rata and Paki Hone Kopa Whanau Trust for a suppressed amount. It “is part of NZPF’s ongoing investment programme whereby it will acquire forestry rights over land totalling up to 10,000 hectares, primarily in the Northland region. Under the programme NZPF plan to establish a commercial forestry operation involving a short rotation (where harvesting [sic] every seven years rather than every 27 years as occurs in current radiata pine harvesting) pulpwood species such as acacia.” The wood will be “either exported whole, or will be transported to the Marusumi Whangarei Company Ltd plant to be chipped for export to Japan for use in manufacturing plants run by the Company’s shareholders.” The last purchase of such forestry rights approved by the OIC was in July 1999.




• Lin Ling-Chun of Taiwan has approval to acquire 31 hectares of land at Tangahoe Valley Road, about 20 kilometres from Hawera, Taranaki, from the New Zealand Forestry Group Ltd, for $143,190. The New Zealand Forestry Group is owned 76% by Wesley Garratt of Aotearoa and 24% by J. Hong of Taiwan. The last similar deal at Hawera, in which New Zealand Forestry Group sells land in small blocks but continues to manage the forest that is planted on it, was in February 1999. It has similar operations at Paparangi, Wanganui, and elsewhere.
• Similarly, Ching-Cheng Hou of Taiwan and Fen-Chen Hou Kung of Aotearoa have approval to acquire equal shares in 30 hectares of land at No. 3 Line and Kaukatea Valley Road, Wanganui from the New Zealand Forestry Group Ltd (see previous decision) for a total of $180,662. Both are members of the Okoia Forest Owners Association, which “has entered into an arrangement with New Zealand Forestry Group to develop approximately 303 hectares of afforested land near Wanganui [including these blocks]”. For the last such sale involving Okoia and further details, see our commentary on the September 1999 decisions.




• Polyidus Partners (New Zealand) Ltd, owned by Peter Thomas of the U.S.A., has approval to acquire a 20% interest in the 697 hectare Mangaiti Station, Mata Road, Tokomaru Bay, East Cape, Gisborne for $640,000. There is a pinus radiata forest on the land, and the U.S. interest provides capital to retire debt and provides development capital to the existing owner, G. Bogiatto of Aotearoa. “In essence the proposal can be viewed as a joint venture between an overseas person who is providing capital for development purposes and New Zealand parties who are providing the necessary expertise to the operation.” In our commentary on the OIC’s December 1996 decisions we reported that:

“Trustwood Forests (Kiteroa) Ltd, which owns a 1,450 hectare pinus radiata forest in Mata Survey District, East Cape, Gisborne, is selling a half interest in 249 hectares of it to Galt Holdings Ltd for $292,500…In September, we reported a similar deal: three residents of Belgium gained approval to buy a half share in 555 hectares of land in Ihungia Road, Te Puia Springs, East Cape, for $515,000. They were buying the half share from Trustwood, and the land formed part of a 870 hectare property owned by Trustwood. Approximately 500 hectares had been planted in pinus radiata and Trustwood was selling the share to reduce its indebtedness. It showed that one of the local owners of Trustwood was George Bogiatto who is named this month only as the lawyer who is contact for the application.”

George Bogiatto, barrister and solicitor, Auckland, is again the contact for this decision. Given that, it is not clear who is providing the local forestry “expertise”.

• Southland Plantation Forest Company of New Zealand Ltd, 51% owned by New Oji Paper Company Ltd, 39% by Itochu Corporation, and 10% by Fuji Xerox Co. Ltd, all of Japan, has approval to buy 345 hectares of land at Waimahaka-Fortification Road, Fortification, Southland for $911,250 for forestry. It is currently used for sheep grazing. The company’s last such purchase was in August 1999.

Greg and Nancy of the U.S.A. to build “elite” summer ski lodge in Wanaka

Greg Harrington and Nancy Stout of the U.S.A., have approval to acquire seven hectares of land at Maungawera Road, Wanaka, Otago, for $235,000 from A. and J. Gillespie.

“Greg Harrington and Nancy Stout have since 1992 operated New Zealand summer ski camps for elite athletes who require winter training conditions during their off season. Greg and Nancy plan to build a lodge to provide an accommodation and training area for their existing ski camps. It is proposed to provide a lodge that will accommodate 20 athletes who can train and live together while attending the ski camps. … [W]hen the lodge is not being used for the ski camps, it will be made available to the public.”

“Greg and Nancy” – unusually matey for the OIC.

Pahiatua “Village Project” is commercial but “humanitarian”

Ms L.C. King of the U.K. has approval to acquire two blocks of land at Makairo Road, Kohinui, Pahiatua, Manawatu, as the site for a “humanitarian assistance project known as ‘The Village Project’”. One block is of 236 hectares, bought from P. and S. Anich of Aotearoa, for $646,875. The other is of 176 hectares, bought from N. and B. Hunt of Aotearoa, for $574,875.

The “Village Project”, as the OIC describes it, appears somewhat bizarre:

“It is proposed to establish a ‘model village’ on the land which will provide a working example of the project. The ‘model village’ will also enable experimental and research work to be undertaken to develop various methodologies best suited to different climactic [sic!] conditions. The project will involve development of model agronomy methodologies such as hydroponics suitable for sustaining the nutrition, employment and cash crop needs of small groups of approximately 50 persons. The project’s goal is for the various methodologies and associated skills to be developed as a technology and service ‘product’ that can then be marketed and sold on an export basis to target organisations and regions, including Eastern Europe and East Africa.”

More land for Martha Mine, Waihi

Waihi Gold Company Nominees Ltd has approval to acquire four hectares of land at 98 Barry Road, Waihi, Coromandel for $274,000 from S. and P. Win to extend the Martha Mine. Waihi Gold is owned 67.06% by Normandy Mining Ltd, listed in Australia, and 32.94% by AUAG Resources Limited. However the OIC gives the AUAG ownership as 17.05% Aotearoa, 15.11% Australia, 0.65% U.K., 0.07% France, and 0.06% U.S.

“The company is proceeding with an extension to the Martha Mine that will have the effect of extending the life of the mine for about an additional seven years beyond the current estimated life of the mine of 1999. This extension involves enabling access to be obtained to ore below the level of the currently licensed pit. To reach this ore it is necessary to bench back (or extend) the perimeter of the existing pit, and the additional land is required for this, and to provide a sufficient buffer between the extended mine and surrounding residential uses. Previous consents have been granted by the Commission for the acquisition of such land. The land the subject of this application is directly adjacent to the extended Martha Hill mine licence area, and will be required as a buffer for the extended project.”

The last such purchase was in September 1999.

Other rural land sales

• Alfa Developments Ltd, owned by K.T. Ching, W. Loo, L. Loo, E. Loo, E.T.K. Kam, and D.T.L. Kam all of Malaysia, has approval to acquire 89 hectares of land at Springhill Road, Onga Onga, Hawkes Bay, for $337,500. They propose to establish an olive grove on the property, managed by a “consultancy firm” from Aotearoa. They also propose to construct a factory to press and bottle the olive oil from the orchard.




• Morton Estate Wines Ltd, owned by the Coney family of Canada, has approval to acquire 43 hectares of freehold and 129 hectares of leasehold land at Waihopai Valley Road, Blenheim, Marlborough, for $1,528,612, from Murray Downs Ltd. Morton Estate proposes to establish a vineyard and crush plant there.




• K. Milstein of Australia has approval to acquire 6.2 hectares of land at Brookby Road, Omaka, Blenheim, Marlborough, for $163,125. He proposes to develop an olive orchard on the land and also construct tourist accommodation for use by “house guests”.




• D. De Angelis of the U.S.A. has approval to acquire two blocks of land at Bossu Road, Banks Peninsula, Canterbury. One is 184 hectares at “Poronui”, for $703,125, and the other is 60 hectares at “Oashore” for $315,000. In both cases the new owner “intends to establish large stands of native forest on the land… The properties, described as declining farming ventures will then be developed as an ecotourism destination and as an extension to the Southern Bays Walkways located on Banks Peninsula. In addition to restoration/reintroduction of native flora and fauna the proposed long term investment will include development of walking tracks, mountain biking trails, camping sites and tourist accommodation on the properties.”




• Zeroth Pty Ltd, owned by Mr and Mrs I. and P. MacGregor of Australia, through the MacGregor Investment Trust, has approval to acquire a block of Closeburn Station on the Glenorchy-Queenstown Road, Queenstown, Otago. The station is owned by J. F. Investments Ltd, which is 70% owned by David Salman of Indonesia and 30% by D. Broomfield of Aotearoa. They are subdividing nine hectares of the station as “lifestyle properties” into 27 allotments, each of which will have a share of the remaining 1,000 hectares which will still be farmed (see our commentary on the July 1998 decisions for details). This sale is of 0.8888 hectares plus a 1/27th share of the remaining station, for $621,750. The land adjoins Lake Wakatipu and conservation land. The MacGregors “intend to build a residence” on the subdivided land “within the next 3-4 years”. They will “utilise the property as their principal place of residence when residing in New Zealand for up to six months of any one year”. For the last such sale at Closeburn Station, see our commentary on the December 1998 decisions.




• D. and F. Ramsay of Thailand have approval to acquire nine hectares of land at Gibbston Back Road, Gibbston, Central Otago for $590,625. They “intend to extend and develop the existing vineyard on the property” which currently covers only about half the land, the remainder being used for casual grazing. They “propose to immigrate to New Zealand once their existing business commitments allow”.




• Juicy Lucy BV, owned by J.M. Vernooij of the Netherlands has approval to acquire up to 50% of White Waters Ltd which owns a dairy farm at 1052 Waikouru-Wairio Road, RD 1, Otautau, West Southland, for $460,216. The farm consists of 119 hectares freehold and 282 hectares leasehold. The company is currently owned 50% by J.M. Vernooij’s brother, J.A. Vernooij of Aotearoa, and 50% by L. and M. Te Bogt, also of Aotearoa. The Te Bogts are selling their share.