June 2004 decisionsBritomart Group buys Britomart precinct from Auckland City Council Approval for VT Fitzroy of the U.K. to buy lease of Devonport Naval Dockyard Majority owners take over Kingsgate International Macquarie Goodman buys Fletcher’s Penrose complex from Trans Tasman Trans Tasman Properties buys 55% of Clearwater holding company Waihi Gold buys more land for a buffer around its Favona Underground mine Universal Homes buys land for subdivision at Gulf Harbour
Four applications refusedIn what is probably a record for any month, no less than four applications were refused: · Andrew William Ewart Price and Elizabeth Maria Price of the U.K. have been refused approval to acquire 18.2 hectares at Snelgar Road, Kaitaia, Northland for $245,000 from Paul Percival Sweetapple and Suzanne Fay Sweetapple of Aotearoa. States the OIC: “The Applicants proposed to acquire the subject lifestyle property as a residence and as a base for their management consultancy business. The Applicants were intending to reside permanently in New Zealand and proposed to lodge an application with the New Zealand Immigration Service under the Long Term Business Visa category. The proposal does not meet the Commission’s policy which requires an applicant: (a) to be able or likely to meet certain conditions when proposing to take up New Zealand permanent residency under the Long Term Business Visa (LTBV) category of the New Zealand Immigration Service’s Work to Residence Policy; or (b) to be undertaking significant developments on the property and converting it from a lifestyle property into a viable investment property; or (c) to have significant investments in New Zealand.” [Decision number 200410080.] · PRAF Holdings Pty Limited, owned by Peter Ronald Alfred Falk and Suzanne Myerson Falk of Australia, has been refused approval to acquire 25 hectares at Waiwhero Road, Motueka, Nelson for $832,500 from Leon Vince McKay, Moyra Anne McKay, Charles Nelan Cabraal and Anthony Thomas Sullivan of Aotearoa. Says the OIC: “The subject property contains two dwellings which are currently rented by the vendor. The Applicant’s consultant reports that the property is not economically viable for agricultural uses only. The Applicant intended to realise the property’s recreational and agricultural potential such as renovations to the cottages located on the property. 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 200410068.] · David James Hill and Valerie Reppelin-Hill of the U.S.A., have been refused approval to acquire 11.3 hectares at 225 Tyntesfield Road, RD6, Blenheim, Marlborough for $652,500 from Richard Philip Bramwell and Wendy Ann Bramwell of Aotearoa. The OIC states: “The Applicants propose to develop the subject property into a vineyard and wine making investment. Initially it is proposed to develop 8 hectares into a vineyard growing organic Pinot Noir grapes. Once there is sufficient production they intend to commence winemaking under their own label by using contract winemakers with an emphasis on exporting their wines. Ultimately, the Applicants would like to develop their own boutique winery and associated store on the property. 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 200410079.] · John Andrew Smith and Jane Hazel Smith of the U.K. have been refused approval to acquire 12.8 hectares at Bangor Road, Darfield, Canterbury for a suppressed amount from Bangor Homestead Limited owned by Clifford William Baker and Habiba Baker of Aotearoa. According to the OIC, “The Applicants are applying for New Zealand permanent residency under the Business Investor category and propose to acquire the subject property for use as a permanent residence. The property contains a large dwelling that the vendors have utilised as an accommodation lodge. The proposal does not meet the lifestyle policy which requires an applicant: (a) to be taking up New Zealand permanent residency with 12 months of the date of approval and provide an undertaking that in the event the applicant subsequently leaves New Zealand permanently or has their residence permit revoked they will dispose of the property within such a period as stipulated by the Commission; or (b) to be undertaking significant developments on the property and converting it from a lifestyle property into a viable investment property; or (c) to have significant qualifying investments in New Zealand.” [Decision number 200410070.] Britomart Group buys Britomart precinct 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 0.99 hectares of freehold land and 0.91 hectares in two blocks of leasehold land at Britomart Place, Quay Street, Queen Street, and Customs Street, Auckland for $31,387,500 from the Auckland City Council.
The OIC states:
The Auckland City Council has been acquiring sites in the area of the Britomart precinct since the late 1980’s. In the mid-1990’s, Auckland City began a process to create a comprehensive transport centre and integrated commercial development on the Britomart precinct. The completed development of the Britomart Transport Centre has resulted in land and heritage quality buildings being available for development.
The Applicant has entered into a Development Deed with the Auckland City Council in respect of the Britomart precinct (located between Britomart Place, Quay Street, Queen Street and Customs Street). Under that Deed, the Applicant is acquiring interests in land in the CPO Building, various Heritage sites and rail corridor sites from the Auckland City Council to achieve the redevelopment of the Britomart precinct. The proposed development includes the renovation and refurbishment of heritage buildings, the construction of new buildings, and the development of open space.
Under the Development Deed, 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.
Auckland City Council describes the Britomart Precinct project as follows:
Five hectares in downtown Auckland will be turned into a vibrant precinct of shops, cafes, apartments, businesses and new public open spaces.
The Bluewater Consortium’s $350 million plan includes the restoration of 17 historic buildings, six new buildings and a major new public open space. The development will be the largest heritage restoration project ever undertaken in New Zealand. The plan was signed off unanimously by Auckland City on 22 April 2004.
Queen Elizabeth Square, Britomart Place, Quay and Customs Streets border the 5.2 hectare Britomart Precinct. Auckland City currently owns all the buildings and land. Under the deal, Bluewater will purchase some buildings and lease others from the council for a package valued at $32 million. The area will be actively managed and developed by Bluewater according to a master plan over the next 11 years.
All of the properties, including the heritage buildings, the upper floors of the former Chief Post Office and the area above the Britomart Transport Centre will revert back to council ownership.
The area above the transport centre will revert back to council after 50 years if needed for transport purposes. The upper floors of the former Chief Post Office will be under an 80 year lease. The council has the option of purchasing the 16 other heritage buildings back from Bluewater after 150 years for $1.
Bluewater took possession of the site in June 2004 and work on streetscapes and the heritage buildings started immediately. The agreement provides for a construction period of up to 11 years, however it is hoped that the Britomart Precinct will be substantially finished within five years.
It says that “The Bluewater Consortium is made up of US property developers Cooper and Stebbins, headed by ex-pat New Zealander Peter Cooper; New Zealand company and heritage restoration experts Phillimore Properties: and well known Australasian property firm Multiplex.” (http://www.aucklandcity.govt.nz/council/projects/britomart/above.asp, accessed 26/12/04)
Peter Cooper is a director of Britomart Group Ltd, with an address in California. The other directors are Ross Healy of Auckland, Ross McDiven of Point Piper, New South Wales, Australia, and Anthony Schumacher of Sandringham, Victoria, Australia. While the OIC describes the company as 40% owned by the “Australian Public”, in fact the 40% is owned by Multiplex Britomart Ltd. The company has been described as being “hard as nails” to its workers and tenants (see our September 2003 commentary on its purchase of the ASB Centre in Auckland).
Whitecloud Britomart Ltd is owned by Whitecloud Property Holdings Ltd, in turn owned by Thomas Murray of 5 Clifton Road, and Mary Cooper of 1 Clifton Road Takapuna, Auckland. [Decision number 200410072.] Telecom buys Gen-iTelecom New Zealand Limited, owned 27.25% in the U.S.A., 23.49% in Australia, 15.91% in the U.K., 15.15% by other “Persons who may be ‘overseas persons’”, and 18.2% in Aotearoa, has approval to acquire Gen-i Limited for $62,346,000 from Geni IT Limited, owned by Eric Watson of Aotearoa.
The OIC states:
The Applicant (Telecom) proposes to acquire 100% of the shares in Gen-i Limited (Gen-i). Gen-i delivers technology solutions and services in an information technology environment. Gen-i’s principal activities include software development, project management, outsourcing, procurement and training and support. The acquisition will enable Telecom, in particular its information technology services business unit named Telecom Advances Solutions, to expand its expertise in the information technology industry to include the product and service offerings of Gen-i.
It is interesting that the OIC does not give the usual list of “benefits” of the takeover.
Gen-i is the former Wang New Zealand, a major computer consultancy, services and supply company. It was taken over by Watson’s Blue Star Group when the group was in majority US hands (U.S. Office Products). Watson bought the group back when USOP proved it had overreached itself. Gen-i had over 700 staff and revenue of $155 million before the takeover. Telecom plans to merge it with its information and communication technologies business, Telecom Advanced Solutions. Just two months later, Telecom announced the purchase of Computerland New Zealand, a major business computer services and sales operator. [Decision number 200410078.] Approval for VT Fitzroy of the U.K. to buy lease of Devonport Naval DockyardVT Fitzroy Limited, owned 70% by the VT Group plc of the U.K. and 30% by Fitzroy Engineering Group Limited of Aotearoa, has approval to acquire 2.11 hectares of leasehold land at Devonport Naval Dockyard, Devonport, Auckland for $3,000,000 from the Royal New Zealand Navy of New Zealand.
The OIC states:
VT Fitzroy Limited (VTF) has been selected by the Royal New Zealand Navy (RNZN) to manage and provide engineering services related to the repair, maintenance and upgrade for RNZN’s vessels at the Devonport Naval Base, Auckland commencing on 1 July 2004. VTF propose to enter into a Dockyard Management Contract with the RNZN. In order to provide these services, it is proposed that VTF will lease land and facilities that form part of the Devonport Naval Base. The RNZN management contract provides the VT Group plc (the majority shareholder of the joint venture Applicant) an opportunity to establish a business presence in the South Pacific.
The contracting out of the maintenance and repair of Navy ships and commercial vessels is for a period of ten years, with an option for a further five. The initial contract was worth over £100 million. VT Fitzroy took over from another transnational military contractor, Babcock.
The VT Group of the U.K. is the former Vosper Thornycroft, a major military contractor which builds warships for the British navy, but also builds small craft, and is engaged in engineering, manufacturing, communications (including to the U.K. spy agency Government Communications Headquarters (GCHQ) at Cheltenham), support services, and education. Its board of directors includes Admiral Lord Michael Boyce, former First Sea Lord and Chief of U.K. Defence Staff; and former US Air Force Chief of Staff, General Michael E. Ryan. (See its web site, http://www.vtplc.com.) [Decision number 200410074.] Majority owners take over Kingsgate InternationalKIN Holdings Limited, owned 38.7% by Tai Tak Holdings Pte Limited of Singapore, 22.5168% by the Hong Leong Group of Singapore, 20.5281% by other shareholders in Singapore, and 18.2551% in Aotearoa, has approval to acquire Kingsgate International Corporation Limited for $126,000,000 from existing shareholders in Kingsgate. According to the OIC, Kingsgate International Corporation Limited is owned 32.04% by Tai Tak Holdings Pte Limited, 18.6378% by the Hong Leong Group, 16.9918% by other shareholders in Singapore, 11.18% by “Other overseas shareholders” of unknown origin, and 21.1504% in Aotearoa (but see below).
The OIC states:
The New Zealand Exchange Limited (NZX) has informed Kingsgate International Corporation Limited (KIC) that the spread of KIC’s shareholding currently breaches the spread requirements under the listing rules of the NZX. This breach is caused through CDL Hotels New Zealand Limited (CDL) and Tai Tak Holdings Pte Limited (together with its immediate holding company (Tai Tak Securities Pte Limited) (TTH)) holding 82.78% of the ordinary shares in KIC. In response to the breach, CDL and TTH have incorporated the Applicant and propose to acquire up to 100 of the ordinary shares in KIC, and delist KIC upon completion of the acquisition.
KIN Holdings is a subsidiary of CDL Hotels New Zealand Limited (it is owned 61.3% by CDL and 38.7% by Tai Tak Holdings Pte Limited) which in turn is a majority owned subsidiary of Millennium and Copthorne Hotels. CDL owned 50.74% of Kingsgate. Together, CDL and Tai Tak (together with its parent company) held approximately 82.78% of the share capital of Kingsgate. The takeover offer was for $0.32 in cash per share, equating to a total value of $125.8 million for all of the shares. (From regulatory announcement to the London Stock Exchange, 27/4/04.)
The Singapore-owned group describes itself as “the largest owner-operator of hotels in New Zealand and through its subsidiaries, CDL Investments New Zealand Limited and Kingsgate International Corporation Limited, also has extensive land and property development interests in both New Zealand and Australia.” It operates the Millennium, Copthorne and Kingsgate chains. It owns 91 hotels in 17 countries around the world, including 28 hotels in 15 locations in Australasia. (See its web site http://www.mckhotels.co.nz, accessed 26/12/04.) [Decision number 200410073.] Macquarie Goodman buys Fletcher’s Penrose complex from Trans TasmanMacquarie Goodman Nominee (NZ) Limited, owned 60% in Australia and 40% in Aotearoa, has approval to acquire 8.1 hectares at 810 Great South Road, Auckland for $72,000,000 from NZGP (810 Great South Road) Limited, which is 59.97% owned by SEA Holdings Limited of Hong Kong, 4.1191% by “Unknown Overseas Persons”, and 35.9109% in 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 which is utilised as an integrated office and industrial park. The Applicant advises that the acquisition is part of the strategy to grow their portfolio by the addition of New Zealand industrial properties and integral in building the Applicant’s property development book to ensure that they have the solutions available to accommodate the future space requirements of existing and prospective customers in Auckland.
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, which is a subsidiary of Macquarie Goodman Management Limited. MGP is a New Zealand listed unit trust which has various property investments in New Zealand. MGP is managed by Macquarie Goodman NZ Limited, which is a subsidiary of Macquarie Goodman Management Limited.
NZGP is in fact a subsidiary of Trans Tasman Properties, which is controlled by SEA holdings (see its purchase of a controlling interest in Clearwater, below, although the shareholdings reported by the OIC differ slightly between the two decisions). The property is the Fletcher Challenge complex at Penrose, Auckland. [Decision number 200410069.] Trans Tasman Properties buys 55% of Clearwater holding companyTrans Tasman Properties Limited (TTP), owned 61.31% by SEA Holdings Limited of Hong Kong, 4.12% by other “Unknown Overseas Persons”, and 34.57% in Aotearoa, has approval to acquire up to 55% of Clearwater Property Holdings Limited for $5,100,000 from New Zealand Land Trust, owned 50% each by John Gerald Darby and Michael Owen Coburn, both of Aotearoa.
The purchase includes control over 112 hectares at Clearwater, Christchurch, Canterbury (see below). According to the OIC,
TTP proposes to acquire a 55% interest in Clearwater Property Holdings Limited (CPHL). CPHL through its subsidiaries has a 62% interest in the Christchurch Clearwater development. The initial stages of the Clearwater development comprise a world class golf course and associated facilities, and apartments and residential sites. The subject transaction will enable TTP to acquire a 34% interest in the property developments of the Clearwater group of companies and provide its development expertise to enable the continuation of the Clearwater development.
Subsequent to the proposed share purchase CPHL (or its subsidiaries) propose to acquire various properties located near the Clearwater development and Rangiora over which CPHL (or its subsidiaries) have entered into agreements to purchase. It is proposed that these development properties will be used to continue the original Clearwater concept to provide a high class integrated development encompassing residential/accommodation, recreation, open space areas and commercial facilities as part of the Christchurch urban area. [Decision number 200410087.]
Darby and Coburn remain shareholders of Clearwater Property Holdings, with 22.5% each.
The company has also been given approval to acquire the following land at Clearwater, Christchurch, Canterbury (unless otherwise stated): · 5.1 hectares for a suppressed amount from Koh Holdings Limited, owned by Swee Eng Mary Koh of Aotearoa. [Decision number 200410081.] · 4.2 hectares for a suppressed amount from AKG Developments Limited owned by Karen Mary Guilland and Anthony Ritchie Guilland of Aotearoa. [Decision number 200410083.] · 5.1 hectares for a suppressed amount from Raymond Eric Hampton and Cynthia Margaret Hampton of Aotearoa. [Decision number 200410084.] · 3.5 hectares for a suppressed amount from Mark Gavin Tibbotts and Andrea Margaret Tibbotts of Aotearoa. [Decision number 200410085.] · 6.4 hectares at Johns Road, Christchurch for $1,687,500 from Johns Road Horticulture Limited owned by Murray Graham Valentine, Babara Hirji Valentine and Roger Norman Macassey. [Decision number 200410086.]
The OIC states that the company has “eight subsequent acquisitions … near the Clearwater development and Rangiora over which CPHL (or its subsidiaries) have entered into agreements to purchase”. There are therefore apparently three more to come. Waihi Gold buys more land for a buffer around its Favona Underground mineWaihi Gold Company Nominees Ltd, owned by Newmont Mining Corporation of the U.S.A., has approval to acquire 0.40 hectares at Baker Street, Waihi, Coromandel from Stephen Wayne Bowles and Tessa Margaret MacKenzie of Aotearoa. The price paid was originally suppressed but released on appeal in November 2004: $445,000. The OIC states:
The proposed acquisition relates to a residential property in the immediate vicinity of other land owned by the Applicant in association with the Applicant’s Martha Mine operations. The Applicant proposes to acquire the subject property in connection with the proposed Favona Underground Project as the property is affected by current and future planned exploration in the vicinity of Favona. The acquisition of the subject property is likely to establish a buffer zone surrounding the Favona project.
The Favona project involves a significant new investment for the purposes of an underground gold mining operation. There will likely be few surface effects apart from the air vent shaft, the access portal and the infrastructure required to service the underground workings and transport the ore to the existing processing plants. The land is subject to Exploration Permit 40-645, and immediately adjacent to the Favona Exploration Permit 40-426 from which companies in the Newmont group have been granted the Favona Mining Permit 41-808 for the Favona Underground Mine.
The last purchase for the Favona project reported by the OIC was in December 2002 (see our commentary for that month for further details). However it has been buying other land, mainly to relocate and compensate neighbours because of land subsidence caused by the Waihi mine. The last such purchase was in January 2004 – see our commentary for that month for further details. [Decision number 200410071.] Land for forestry· Juken Nissho Limited, owned 85% by Juken Sangyo Company Limited and 15% by Nissho Iwai Corporation, both of Japan, has approval to acquire 269 hectares at Maraenui Road, Wairoa, Gisborne for $1,975,000 from Lugano Forests Limited of New Zealand. According to the OIC: “The Applicant proposes to acquire the subject property which contains approximately 220 planted hectares established in pinus radiata forestry in 1994. This acquisition will provide the Applicant with a further secure supply of wood which will be processed at its Gisborne processing mill. This will ensure continuity of processing and employment at the Gisborne mill and will enable future expansion of the value-added production at Gisborne. The Applicant intends to undertake a second forestry rotation following the harvesting of the existing forest. Replanting is likely to commence in 2024.” The company last received approval to buy land, again in Gisborne, in January 2004. See our commentary for that month for further details. [Decision number 200410076.] · Faunus Limited, owned 50% by Pavel Rejman, 30% by Berta Dietsche, and 20% by Christoph Dietsche, all of Switzerland, has approval to acquire 99 hectares at Tawhero Forest Estate, Waitawhiti Road, Masterton, Wairarapa for $790,902 from DSM Land Limited of Aotearoa. According to the OIC: “The Applicant proposes to acquire a forestry block growing pinus radiata which is part of a larger forestry block being sub-divided by the vendor. On average the trees are 7-8 years old. The vendor will continue to manage the block under a management agreement and the Applicant will provide capital to fund the on-going development of the forestry block. In essence the proposal is a joint venture between the Applicant (who is providing capital for development purposes) and the vendor which is a New Zealand company (which has been engaged by the Applicant to provide the expertise necessary to manage the operation). The land being acquired is part of a larger property owned by the vendor, which intends to develop land totalling approximately 1,063 hectares into forestry. To date 340 hectares have been planted and this proposed sale will provide capital to the vendor to further develop the forest on the remaining land.” [Decision number 200410088.] Land for wine· Craggy Range Vineyards Limited, owned 95% by Terrence Elmore Peabody of Australia and 5% by Stephen Mark Smith and Laura Bridget Cunningham Smith of Aotearoa, has approval to acquire leases over two adjoining blocks of land at Parkhill Road, Te Awanga, Hawkes Bay: · 4.45 hectares of leasehold for $641,637 from Andrew MacNiven Caseley of Aotearoa; · 14.2 hectares of leasehold for $2,333,415 from Hursthouse Family Trust of Aotearoa. The OIC states: “Craggy Range Vineyards Limited proposes to undertake a viticultural development, comprising approximately 16 hectares (over both properties) growing Chardonnay grapes, in collaboration with the land owners of both properties.” [Decisions 200410089 and 200410090.] · Beston Delegat’s Wine Trust, of Australia has approval to acquire 142 hectares at Neal Road, Rarangi, Marlborough for $9,072,001 from Delegat’s Wine Estate Limited owned by J and R Delegat of Aotearoa. The OIC states: “The Applicant is a specialist funding vehicle established to capitalise on the growth in the viticultural industry by providing funding for the infrastructural requirements of the industry. It acquires vineyards and associated infrastructure from certain wineries and vineyard operators and leases them back for fixed terms. It has an established portfolio in Australia and New Zealand. The Applicant is in effect a cost effective funding vehicle for wine companies enabling certain winery and vineyard operators to outsource the high capital components of their operations.The Applicant proposes to acquire the land, improvements and fixtures at the Rarangi Vineyard located in Marlborough from Delegat’s Wine Estate Limited (Delegat’s) and then lease it back to Delegat’s. In essence the Applicant contends that the transaction is a funding transaction which will enable Delegat’s to further develop its viticultural business and in particular the development of the subject property.” In October 2002, Beston Delegat’s Wine Trust (then owned 9.2% by the Commonwealth Bank of Australia and 9.08% by the Roche Group Pty Ltd of Australia, the balance also in Australia) received approval to acquire 201 hectares at Redwood Pass Road, Seddon, Marlborough (Dashwood Vineyard) for $9,843,750 from Delegat’s Wine Estate Limited. See our commentary for that month for further details. It had gained approval for an earlier purchase in April 2001. [Decision number 200410082.] · Barkers Marque (Vineyards) Limited, owned 71.8% by Edmund John Barker and Pamela Came Barker of the U.S.A., and 28.2% by Simon Charles Barker of the U.K., has approval to acquire 41 hectares at Reserve Road, Blind River, Seddon, Marlborough for $1,462,500 from Otuwhero Estates Limited, Otuwhero Estates No 2 Limited, and Otuwhero Estates No 3 Limited of New Zealand. The OIC states: “The Applicant, whose directors include an experienced wine maker and viticulturist, proposes to acquire the subject property for a vineyard development. The subject property represents the undeveloped part of a larger block upon which the vendor has planted 44 hectares in vines during 2003/04. The subject property has approximately 31 plantable hectares which will be planted in predominantly Sauvignon Blanc and Riesling. The minority shareholder, Simon Charles Barker resides in and is currently employed as a wine maker in New Zealand. He applied for New Zealand permanent residency in November 2003.” [Decision number 200410077.] Universal Homes buys land for subdivision at Gulf HarbourUniversal Homes Limited, owned 76.1% in Singapore and 23.9% by China Merchant Holdings International Limited of China, has approval to acquire 7.1 hectares at Parkview Drive, Gulf Harbour, Whangaparaoa, Auckland for $15,000,000 from Gulf Corporation Limited of Aotearoa.
According to the OIC,
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 Applicant proposes to develop the property as a medium density residential subdivision of approximately 150 housing units comprising 15 vacant sections, 95 free standing houses and 40 apartments/terrace houses. The development is likely to commence in October 2004 and be completed by August 2008.
The company also bought land at Gulf Harbour in February 2004. See our commentary for that month for further details. [Decision number 200410075.] Summary statisticsAll investments Unusually, the value of investment approved in the year to June 2004 is considerably lower than for the previous June year, both by net value (i.e. disregarding sales from one overseas investor to another, and discounting part New Zealand ownership of the assets) and gross value. As usual, however, by far the greatest part of the value of the approvals is for sale from one overseas investor to another.
There was an unusually large number of refusals (applications declined) this month: four, compared to seven for the year to date and two at the same time last year. All involved land.
Investment involving land Gross sales of land approved by the OIC during the years to June have increased hugely in area, though net sales have fallen to the point where more is being recorded as being transferred to New Zealand part-owners hands than passed on to new overseas owners. This does not however reflect control of the land: a low degree of overseas ownership can still give control of a particular block of land, even if the overseas ownership is less than before a particular sale. A large proportion of the hectares being bought and sold are between one overseas investor and another. Refusals (above) have risen in number and area, but are still a small proportion of the total.
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Compiled by: Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
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