July 2003 decisionsAshburton land bought for barley grass juice factory More land for subdivision for Universal Homes… Swiss investor buys 38% of wine company, Fromm Ltd Three refusals· Dennis Ludio and Sheila Dianne Norton of the U.S.A. have been refused approval to acquire 33.4 hectares at 281 Whakapapa Road, Orakei Korako, Taupo, Bay of Plenty for $1,100,000 from SE Tyler of Aotearoa. The OIC states:
The subject property is utilised by the vendor for growing lavender on approximately six hectares of the property. The remaining area is leased to a local farmer for cattle grazing. The Applicants are proposing to apply for a New Zealand Long Term Business Visa. The Applicants propose to acquire the property as a permanent residence. The Applicants propose to investigate various possibilities for the property including possibly expanding the existing lavender operation in conjunction with the establishment of a tourist related venture. However the investigations are only at a formative stage.
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 200320003.]
· Rebecca Acres Limited, owned by 33.4% by Tamara Current, 33.3% by Case Swenson and 33.3% by Rebecca Menne, all of the U.S.A. has been refused approval to acquire 75.5 hectares at 866 Wolffs Road and 2800 South Eyre Road, South Eyre, Canterbury for $900,000 from GJ and RJ Horn of Aotearoa. According to the OIC:
The property is currently used as a lamb breeding and fattening farm with approximately 17 hectares utilised for growing barley. The Applicant proposes to lease the property to an existing lessee of the Applicant’s who will manage the proposed farming operation as part of a larger block of land owned by associated companies of the Applicant.
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.
Which is interesting, because the same company received approval for a purchase in very similar circumstances in July 2000, when we recorded:
Rebecca Acres Ltd, owned by Tamara Current (33.4%), Case Swenson (33.3%), and Rebecca Menne (33.3%), all of the U.S.A. and members of the Swenson family, has approval to acquire a 137 hectare deer breeding farm at 566 German Road, Oxford, Canterbury from John Vincent Barber of Aotearoa, for $1,046,250. The new owners will lease the property back to Barber who will continue to manage the farm, which will be changed to operate a “deer finishing system” instead of breeding.
In April 1992 we recorded that Rebecca Acres Ltd had “been given permission to acquire a 49.6600 hectare farm on the corner of South Eyre and Wolffs Roads, Oxford, Canterbury for $115,000. They already own an adjacent 112.6023 hectare farm and have been leasing this property since 1989.” These are presumably the properties referred to in the present decision. In July 1992, Tamara Farms Ltd, owned by the same people, acquired a further 240.404 hectare farm at Summerhill, Rangiora for $469,687. [Decision number 200320005.]
· Timothy Carl Kreder and Suzanne Eileen Kreder of the U.S.A. have been refused approval to acquire 28.3 hectares at 342 Hamilton Road, Otautau, Southland for $326,250 from J and C Fraser of Aotearoa. The OIC states:
The Applicants are currently residing in New Zealand under the Long Term Business Visa scheme and intend to apply for New Zealand permanent residency once Mr Kreder’s farm consultancy business is established. The Applicants intend to construct a dwelling on the property and establish a hazelnut orchard on approximately 20 hectares of the property. The Applicants long term plans are to acquire further properties if permanent residency is approved to establish a commercial hazelnut operation of approximately 80 hectares.
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.
The property adjoins land held for conservation purposes. [Decision number 200320002.] Ashburton land bought for barley grass juice factoryBarley Holdings, Limited, owned 50% each by Dennis J. Itami and Ronald A. Wright of the U.S.A., has approval to acquire 10.6 hectares at Chertsey Kyle Road, Ashburton, Canterbury for $352,932 from Cleargrove Holdings Limited of Aotearoa.
According to the OIC,
The Applicant’s parent company AIM International, Inc. produces a range of health products and food supplements. The AIM group distributes, markets and sells products in the United States of America, Canada, South Africa, Australia, Taiwan, Malaysia, Singapore, Hong Kong and New Zealand.
The AIM group has developed new technology for the extraction of juice from barley grass leaves and proposes to establish a factory on the property to process the raw materials used in the production of Barleylife (an extract made from the leaves of young barley grass plants). The subject property is in an ideal location for the Applicant being located in the midst of a preferred cropping area in which barley grass is grown and harvested.
Apparently literally and figuratively a greenfield investment.
The property adjoins land “which is provided as a reserve, a public park, for recreation purposes, or a private open space”.
According to AIM’s website, http://www.theaimcompanies.com,
The AIM Companies is a global group whose common goal is to provide high-quality, science-based whole food concentrates and nutritional supplements through a network marketing business system. The mission of The AIM Companies is Improving Quality of Life through both health and wealth.
Founded in 1982 in Nampa, Idaho, The AIM Companies include offices in the United States, Canada, Taiwan, New Zealand, Australia, South Africa, and Malaysia. AIM products are available in more than 30 countries around the world.
The AIM Companies pioneered the use of plants—barley, carrots, and beets—as vehicles to deliver the body concentrated nutrition conveniently. [Decision number 200320011.] More land for subdivision for Universal Homes…Universal Homes Limited, owned 76.1% in Singapore and 23.9% by China Merchant Holdings International Limited of China, has approval to acquire 1.6 hectares at Mulvaney Avenue, Henderson, Auckland for $2,025,000 from Emerald Residential Limited of Aotearoa. The OIC states:
The Applicant is a predominant player in the Auckland housing market with a principal activity in the development of blocks of land in the Auckland region for the construction and sale of residential house and section packages. The Applicant is continually searching for land for residential development to meet the demands of the population. The subject property is a vacant land block which lies strategically within the centre of a higher quality residential subdivision within the Henderson North area. The Applicant proposes to develop the land as a medium density residential subdivision of approximately 38 lots. The development is likely to commence in October 2003.
The property adjoins land “which is provided as a reserve, a public park, for recreation purposes, or a private open space”. Universal Homes last received approval to acquire land in May 2003. See our commentary for that month for further details. [Decision number 200320006.] … and Neil ConstructionNeil International Limited, owned by the Tiong Family of Malaysia, has approval to acquire 0.8 hectares at State Highway 1, Albany, Auckland for $444,375 from The Crown. Says the OIC:
The Applicant proposes to acquire the subject property to add it to its portfolio of commercial subdivisional land in the Auckland region. The Applicant owns a 12.095 hectares adjoining the property. The subject property is a landlocked parcel, with no road access. It was originally acquired by Transit New Zealand from the Applicant pursuant to the Public Works Act 1981 for motorway purposes. The subject property is now surplus to Transit New Zealand’s requirements. As required under the Public Works Act 1981, Transit New Zealand has offered it back to the Applicant.
The Applicant advises that the subject property will be amalgamated with the adjoining land to be subdivided for commercial purposes. The land has a commercial zoning upon which the Applicant proposes to develop a commercial office park. Resource consents have been obtained for the proposed development and construction is likely to commence over the next 12 months.
The property adjoins land “which is provided as a reserve, a public park, for recreation purposes, or a private open space”. Neil Construction last received approval to acquire land in May 2003. See our commentary for that month for further details. [Decision number 200320012.] Swiss investor buys 38% of wine company, Fromm LtdPaul Francois Lezinger of Switzerland has approval to acquire 38% of Fromm Limited, including 8.4 hectares at State Highway 1 and Godfrey Road, Renwick, Marlborough, for $1,934,520 from Georg Fromm of Aotearoa.
The Applicant proposes to acquire a 38 percent shareholding in Fromm Limited, a winemaking and vineyard owning company. Fromm Limited is a boutique winery producing high quality varietals including Pinot Noir, Chardonnay, Syrah, Gewurztraminer and Riesling. The introduction of further capital from the Applicant will enable Fromm Limited to retire debt and enable further development of the vineyard and expansion of its existing winery which is currently operating at full capacity. [Decision number 200320008.] Land for wine· Montana Group (NZ) Limited, owned by Allied Domecq PLC of the U.K., has approval to acquire 64 hectares at Seaview Road, Seddon, Marlborough for $2,031,250 from ML and HJ Neame of Aotearoa. As usual, “The Applicant has identified the acquisition of further vineyards or land for development for the growing of grapes as a way of being able to compete more effectively in the national and international wine markets. The proposed purchase will provide the Applicant with an increased grape supply which will enable it to continue to develop its export wine markets and enhance the reputation of New Zealand wine overseas. The ongoing development is likely to result in the introduction of development capital, increase in employment, processing of grapes and export volumes. The subject property is currently used by the vendor for sheep farming. The Applicant advises that the property has a total of 56 plantable hectares which will be planted in Sauvignon Blanc.” [Decision number 200320004.] · Gibbston Valley Wines Limited, owned 31.2% in the U.S.A., 11.4% in New Caledonia, 0.5% in the U.K., 50.7% by S and M Stone of Aotearoa, and 6.2% in minor shareholdings in Aotearoa, has approval to acquire 18.0 hectares at Ardgour Road, Bendigo Station, Central Otago for $393,750 from JC and HL Perriam of Aotearoa. “The Applicant operates a vineyard and winery operation with associated restaurant and tourist activities in Central Otago. The Applicant is a producer of high quality wines having done well at both national and international wine competitions. The subject property is part of a viticultural subdivision of Bendigo Station undertaken by the vendor. The subject property was previously used by the vendor for pastoral grazing. By owning its own land and growing more of its own grapes the Applicant aims to exercise greater control over the vines and the supply and the quality of those grapes.” Gibbston Valley Wines bought a 9.5 hectare block of Bendigo Station from the Perriams in December 2002 (see our commentary for that month for further details). The New Caledonian interest in Gibbston Valley Wines is through the Montagnat family. [Decision number 200320001.] Other rural land sales· Nicholas John Davies of the U.K. has retrospective approval to acquire 17.0 hectares at High Ridge Road, Clevedon, South Auckland for $382,500 from RAS and B Davies of Aotearoa. “Mr Davies came to New Zealand as a child with his parents in November 1974. He spent the next 27 years residing in New Zealand prior to leaving New Zealand on his overseas experience to further his work experience. Mr Davies has a returning resident’s visa and had no intention of remaining permanently out of New Zealand. Mr Davies has advised that he is now returning to New Zealand and intends to and has the ability to reside indefinitely in New Zealand. In November 2001 Mr Davies, while residing in the United Kingdom, acquired the property at High Ridge Road, Clevedon. Mr Davies’ solicitor has advised that consent was not obtained prior to acquisition of the property as they were of the view that consent was not required as Mr Davies had New Zealand permanent residency status and was out of New Zealand on an overseas experience with no intention of remaining overseas indefinitely. Mr Davies purchased the property in order to assist his parents financially. His parents reside on the property and have established a horse breeding and training operation on it. The Applicant is demonstrating a commitment to New Zealand through holding and taking up New Zealand permanent residency.” The property adjoins land held for conservation purposes. [Decision number 200320010.] · Ronald Leonard Leader and Anne-Marie Leader of the U.K. have approval to acquire 5.3 hectares at State Highway 50, Roys Hill, Ngatarawa, Hawkes Bay for $395,000 from DA and CJ Barnes of Aotearoa. “The Applicants have applied for New Zealand permanent residency under the Business Investor category and propose to acquire the subject lifestyle property. The Applicants intend to construct a dwelling and reside on the property. The property is part of a subdivision of a larger block of land that has not been recently used for any economic purpose. The Applicants are demonstrating a commitment to New Zealand through applying for and taking up New Zealand permanent residency.” [Decision number 200320007.] · Prime Pine Limited, owned by the SE Baker Family Trust of Australia, has approval to acquire 2.3 hectares at Little Sydney Road, Motueka, Nelson for $140,625 from MF Moss of Aotearoa. “The subject land adjoins property owned by the Applicant on which it operates a sawmill and timber treatment operation. The Applicant’s business activities are the purchase, milling and treatment of sawn timber wood products. The transaction is being effected by way of a boundary adjustment with the subject land being amalgamated with the land in the Applicant’s title. The overall rational for the acquisition is that it provides a buffer zone/green belt between the Applicant’s operation and surrounding land owners as well as providing scope for the Applicant to expand its existing operations. In this regard the Applicant is very conscious that its activities while permitted within the small parcel of land owned by it, is potentially in conflict with the surrounding rural zones which are rural residential. The establishment of a buffer zone/green belt is likely to ensure the ongoing operation of the sawmill and the continuation of the benefits of that operation.” The last record we have of Prime Pine gaining approval from the OIC is in February 1994, when it again bought land (then, two pieces of land totalling just under 3 hectares) from a neighbouring orchard, again in order to form an “environmental buffer zone” for the sawmill. [Decision number 200320013.] · Leslie Roy Palmer of the U.K. has approval to acquire 40.5 hectares at Beckwith Road, Glenroy, Canterbury for $675,000 from IJ and MR Beveridge of Aotearoa. “The Applicant is currently residing in New Zealand under the Long Term Business Visa scheme. The subject property is currently operated as a commercial beef/stud farm, raising bobby calves. A farm stay accommodation/function venue operation has also been established on the property. It has a licence for 50 people. The Applicant proposes to acquire the property for grazing and fattening of beef cattle and some dairy cattle grazing. It is also proposed to expand the farm stay operation utilising the Applicant’s knowledge/experience in catering.” [Decision number 200320014.] Summary statisticsAll investments All of the investment this month involved land, which is reflected in the very low value of the transactions – only $8 million, with the net value (i.e. disregarding sales from one overseas investor to another) not much different from the gross. However for the full year, the gross value is about the same as last year at this point, but the net value well ahead.
What particularly distinguishes this month however is the number of refusals – three out of only 13 transactions. This must be an all-time record. See OIC, you can do it!
Investment involving land As with values, areas of sales of land approved by the OIC this month was also very low – indeed, not much more than sales refused.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Compiled by:
Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
