June 2007 decisionsSingapore Government and Babcock & Brown buy Alinta for $8.5 billion… … and Babcock & Brown then buys Glenbrook for $232 million CVC private equity buys half of PBL for $163m for New Zealand assets Ironbridge private equity takes control of MediaWorks Queenstown, Auckland resort/hotel properties to U.K. fund for $319m and resale AMP buys Palms Shopping Centre, Christchurch for $208.5 million HIH of Germany buys two leasehold Auckland buildings for $156 million Strategic Investment Group buys leasehold property at Princes Wharf, Auckland US subsidiary of Reading cinemas buys 26 ha. in Manukau Ariadne Australia buys Orams Marine Village in Auckland Macquarie Goodman buys Manukau Council land for Savill Link development Cedenco of the US buys Mountain Carrots New Zealand Kupe Joint Venture buys further land for gas production station Rausing family (Ingleby Company) adds 595 hectare Katoa Station in Gisborne CDL Land buys further land near Christchurch for subdivision Australian buys Wanaka property
Singapore Government and Babcock & Brown buy Alinta for $8.5 billion…ES & L Pty Ltd, owned 50% by the Singapore Government, 45.55% in Australia, and 4.45% by “various overseas persons”, has approval to acquire 100% of Alinta Limited, Waikato for $8,500,000,000. Alinta was owned 97.8% in Australia, and 2.2% by “various overseas persons”.
According to the OIO,
The vendor, Alinta Limited, entered into an arrangement with ES & L who is owned by Singapore Power International, Babcock & Brown Space Cat Holdings Pty Ltd and Pinnacle Infrastructure (together the Consortium). The agreement is to acquire 100% of the issued share capital of Alinta. Alinta’s principal [New Zealand] asset is the Glenbrook Power Station, which will be purchased by Babcock & Brown Power, an associate of ES & L.
The operations and maintenance of Alinta is due for a restructure following Alinta’s merger with AGL infrastructure. All members of the Consortium currently have internalised operation and management functions, suggesting potential for enhancement in the operational and management businesses of Alinta.
Combining the portfolio of Alinta’s assets and the existing portfolio of Babcock & Brown’s assets is a strategic move, as the assets are complementary in terms of asset class, geographic location and synergistic potential. The electric and gas infrastructure assets of Alinta also fit well with the regulated infrastructural portfolios of the Singapore Power group. Therefore the Consortium is in a position to make a better offer in terms of price and execution certainty than each of the entities individually.
This is principally an Australian takeover, but Alinta’s ownership of the Glenbrook Power Station (acquired in 2005) brought it into the OIO’s jurisdiction. However Babcock & Brown are promptly buying Glenbrook from Alinta, as the next approval shows. Babcock & Brown manages Prime Infrastructure of Australia which in 2004 bought Powerco in a controversial takeover – see our commentary for October 2004.
[Decision number 200710065.] … and Babcock & Brown then buys Glenbrook for $232 millionBabcock & Brown Power, owned 83% in Australia, 6% in the U.S.A., 6% by Asian Investors, 4.5% in Europe, and 0.5% by “various overseas persons”, has approval to acquire the Glenbrook power station at Mission Bush Road, Glenbrook, Glenbrook Beach, Waikato for $232,000,000 from Alinta Limited, then owned 97.8% in Australia and 2.2% by “various overseas persons”.
The OIO states:
The vendor, Alinta Limited, entered into an arrangement with ES & L who is owned by Singapore Power International, Babcock & Brown Space Cat Holdings Pty Ltd and Pinnacle Infrastructure (together the Consortium). The agreement is to acquire 100% of the issued share capital of Alinta. Alinta’s principal New Zealand asset is the Glenbrook Power Station. This will be purchased by Babcock & Brown Power (BBP), a specialist infrastructure entity of Babcock & Brown.
The Glenbrook power station clearly fits within BBP’s investment criteria and BBP views Glenbrook as a quality power generation asset which has solid revenues and economic returns. BBP already has geographic diversity within Australia and BBP considers that Glenbrook will complement its existing portfolio and further diversify its geographic footprint. Glenbrook represents an opportunity for BBP to acquire a significant New Zealand based power asset which will represent BBP’s first overseas and New Zealand based asset.
[Decision number 200710066.] CVC private equity buys half of PBL for $163m for New Zealand assetsRed Earth Holdings B.V. has approval to acquire 50% of the shares in PBL Media Holdings Pty Limited and 50% of the units issued by PBL Media Holdings Trust for $163,246,498 from Publishing and Broadcasting Limited of Australia. The price is presumably only for the New Zealand assets of the company, given that the whole deal was reported to have been priced at A$4.6 billion (Press, “Packer moves out of media”, by Damon Kitney and Neil Showbridge, 5/6/07, p.C4).
Red Earth has been specially created for the purchase of half of the major Australian media company, Publishing and Broadcasting Ltd (PBL), by giant private equity corporation CVC Capital Partners Group. Ultimately Red Earth is owned · 53.6347% in the U.S.A. · 17.1337% by “various overseas persons” · 12% in the U.K. · 5.7334% in Singapore · 4.1662% in Canada · 4.0668% in the Netherlands; and · 3.2663% in United Arab Emirates.
Nothing is simple in these deals however. According to the OIO,
Red Earth is a special purpose vehicle incorporated for the purposes of a joint venture between Publishing and Broadcasting Limited (PBL) and funds managed and advised by subsidiaries and affiliates of CVC Capital Partners Group sarl (CVC). CVC is ultimately owned by the funds which are managed by CVC comprising: (a) CVC European Equity Partners IV (CVC Europe IV) (b) CVC Capital Partners Asia II (CVC Asia II); and (c) CVC European Equity Partners Tandem Fund (CVC Tandem); and (d) syndicated co-investors of CVC Asia II.
CVC Europe IV and CVC Tandem are advised and managed by CVC, while CVC Asia II is advised and managed by entities controlled by CVC and Citibank N.A. CVC is a leading international private equity group with over 25 years of investment experience. Funds advised by CVC Capital Partners have invested in over 236 companies for a total consideration of over US$85 billion.
The investors in the funds advised by CVC are typical of investors in most global private equity funds being primarily a combination of institutions and pension funds mainly from Europe and the United States of America.
Red Earth Holdings B.V. (Red Earth) is a special purpose vehicle incorporated in the Netherlands for the purposes initially of providing funding to Publishing and Broadcasting Limited (PBL) by acquiring the convertible securities and subsequently the new securities in PBL Media and Media Trust.
PBL is Australia’s leading diversified media company with interests in media, gaming and entertainment. PBL’s businesses include ACP Media Limited New Zealand’s largest magazine publisher. As part of a restructuring and recapitalisation of PBL’s businesses, PBL Media and Media Trust were established and media interests, including ACP Magazines, Nine Network (including its interest in Sky News), its 50% interest in ninemsn and its 41% shareholding in carsales.com.au.
This acquisition of the convertible securities resulted in PBL and Red Earth each holding a 50% economic interest in PBL Media and Media Trust but with PBL having effective control. Following the conversion of the convertible securities, subject to approval from the Australian Government, Red Earth will hold the new securities representing 50% of the share capital in PBL Media and 50% of the units in Media Trust.
In fact, CVC subsequently raised its ownership to 75%, giving it control. For details of PBL and its magazines New Zealand, see the paper “News media ownership in New Zealand”, by Bill Rosenberg, available on the CAFCA web site at http://canterbury.cyberplace.org.nz/community/CAFCA/publications/Miscellaneous/mediaown.pdf.
[Decision number 200710064.] Ironbridge private equity takes control of MediaWorksHT Media Limited has approval to acquire for $533,844,500, CanWest MediaWorks (NZ) Limited owned 69.99% in Canada by CanWest Global Communications Corporation, 29.88% in Aotearoa, and 0.13% by “various overseas persons”.
The purchase is of one of the big four commercial media groups in New Zealand. It owns two TV channels and one of the two radio networks which share approximately 85% of the listening audience. For details, see the paper “News media ownership in New Zealand”, by Bill Rosenberg, available on the CAFCA web site at http://canterbury.cyberplace.org.nz/community/CAFCA/publications/Miscellaneous/mediaown.pdf.
It is significant that the new owner is 26.3% owned by the Singapore Government, no fan of free media. According to the OIO, HT Media is owned · 26.3% by the Singapore Government, · 17.9% in Australia, · 11.5227% in the Netherlands, · 10.0108% in the U.S.A., · 10% in Aotearoa by Existing Management of CanWest MediaWorks (NZ) Limited, · 9.6656% in Singapore by minority shareholders, · 4.8328% in Switzerland, · 2.7616% in Japan, · 2.4164% in the U.K., · 2.4164% by “various overseas persons”; and · 2.1737% by Ing Groep N.V. of the Netherlands.
In fact it is a creation of private equity corporation, Ironbridge Capital Pty Ltd.
The OIO states:
The Application is lodged by Ironbridge Capital Pty Limited (“Ironbridge”) and The Merchant Banking Group of ABN AMRO Bank N.V., through its subsidiary AA Merchant Banking B.V. (together, the “Investors”) on behalf of HT Media Limited (the “Applicant”).
The Investors propose to acquire, through the Applicant, up to 100% of the issued ordinary share capital of CanWest Media (NZ) Limited.
The rationale underpinning Ironbridge’s proposal to acquire the shares is that this acquisition is consistent with its investment principles. Ironbridge’s philosophy is to acquire established, cash generative businesses, with leading market positions and to focus on operational improvements and growth to drive value creation.
Ironbridge initially bought CanWest Global’s shareholding, and then was required to make the same offer to other shareholders. Sufficient minority shareholders (mainly large investment groups) refused the initial offer that Ironbridge didn’t reach its 100% on its first try. It only reached 100% shareholding after increasing its offer to those shareholders. It is not clear if the $533,844,500 price quoted by the OIO is at the rate of the original offer or takes into account the subsequent increase for the hold-out shareholders.
[Decision number 200710068.] Queenstown, Auckland resort/hotel properties to U.K. fund for $319m and resaleGDF-I LLP (English LLP), owned 31.38% in the U.K., 31.2% in the U.S.A., 23.65% by “various overseas persons”, and 13.77% in Australia, has approval to acquire “certain business assets and undertakings” of Peninsula Road Limited and Melview Viaduct Harbour Limited, in Auckland, and Queenstown, Otago for $319,421,300. The two local companies are own by Nigel Anthony McKenna of Aotearoa.
According to the OIO,
GDF-I LLP (the Applicant) is an intermediary investment vehicle established to hold a portfolio of hotel and resort assets on behalf of an investment fund – Global Destinations Fund I LP (Fund). The Applicant has entered into agreements to acquire certain resort/hotel properties in Queenstown and Auckland (the Properties).
The Properties are being acquired as a bulk purchase so the Applicant can purchase at a discounted purchase price, facilitate and eventually on-sell. The acquisition will also facilitate the vendor’s completion of the development.
Although the OIO does not identify the “business assets and undertakings” acquired, the New Zealand Herald reports (“$300m resort sale”, 27/7/07, http://www.nzherald.co.nz/topic/story.cfm?c_id=257&objectid=10454109):
Property developer Nigel McKenna said yesterday he had sold a third of what will be a billion-dollar development at Kawarau Falls Station near Queenstown.
In one of the largest property transactions negotiated in New Zealand, British-based BlueSky Capital will invest more than $300 million in Melview Developments’ resort.
McKenna said the Overseas Investment Office had approved the investment, which includes the five-star boutique Westin Hotel, the 221-room Intercontinental, plus a 197-room serviced apartment hotel. The properties are part of the 13 separate buildings which comprise the resort.
Excavations had begun and at its height the project would employ 800 workers.
The acquisition is the first to be made by BlueSky Capital’s Global Destinations Fund I, which intends to invest in a portfolio of five-star hotel and resort real estate assets in the Pacific Rim.
McKenna’s is also building a Westin Hotel in Auckland’s Lighter Quay area of the Viaduct Basin with 173 beds, costing $90 million (New Zealand Herald, “Pioneer in smoke-free luxury hotels targets Auckland”, by Anne Gibson, 30/8/07, http://www.nzherald.co.nz/topic/story.cfm?c_id=108&objectid=10398688). Other developments may be involved.
[Decision number 200710076.] AMP buys Palms Shopping Centre, Christchurch for $208.5 millionAMP Capital Investors Limited “as responsible entity for” the AMP Shopping Centre Fund, owned in Australia, has approval to acquire the Palms Shopping Centre, Shirley, Christchurch, Canterbury from Sabina Limited, owned by Warren James Bell and Timothy Charles Glasson as trustees of the Glasson (Palms) Trust of Aotearoa.
Although the price paid has been suppressed by the OIO, it can be calculated from their statistics: it is $208,544,373.
According to the OIO,
The AMP Shopping Centre Fund (ASCF) following a competitive tender process has been selected as the purchaser of the Palms Shopping Centre located in Shirley, Christchurch. The acquisition is consistent with ASCF’s strategy to hold and acquire a pool of sector-specific investment grade retail assets.
[Decision number 200710072.] HIH of Germany buys two leasehold Auckland buildings for $156 millionHIH Global Invest GmbH, owned 80% by the Olearius and Warburg families, and 20% by other investors, all of Germany, has approval to acquire two leasehold properties: the GE Building at 8 Tangihua Street, Auckland CBD, and the BNZ Building at 30 Mahuhu Crescent, Auckland CBD, for $156,375,000 from Manson Buildings Limited owned by Edward Colin Manson of Aotearoa.
According to the OIO,
HIH Global Invest GmbH (the Applicant) seeks to acquire business assets that comprise of two leasehold interests in properties in Auckland through a “Special Purpose Vehicle” (HIH New Zealand), incorporated for the purpose of raising a closed ended real estate fund for private investors. The term “closed ended funds” refers to the fact that, once the fund is fully subscribed, the investors and the assets do not change.
The acquisition of the buildings and the fundraising of a closed ended real estate fund in New Zealand is consistent with the Applicant’s key business strategy of selecting premium property investments for funds managed by HIH Global Invest.
[Decision number 200710075.] Strategic Investment Group buys leasehold property at Princes Wharf, AucklandSIGL Properties Limited, owned 57.46% in Australia by minority shareholders, 37.79% in Australia by Allco Finance Group, and 4.75% in Aotearoa, has approval to acquire 0.794 hectares of leasehold at Levels 1 and 2, Shed 22, 147 Quay Street, Princes Wharf, Auckland for an amount originally suppressed but released on appeal as $4,331,250, from Truman Investment Trust Limited, of Aotearoa. The land “is or includes the foreshore or seabed”.
The OIO states:
SIGL Properties Limited, a wholly-owned subsidiary of Strategic Investment Group Limited (SIGL) proposes to acquire a leasehold interest in the land. SIGL currently has a sub-lease of the land for a period of less than three years with no rights of renewal. SIGL is considering its future strategy in relation to the long-term accommodation of its operations and staff. SIGL Properties Limited proposes to either acquire the sub-lessor’s interest in the land (which is for a term exceeding three years) or vary its existing lease by providing two further rights of renewal of three years each. SIGL advises that the proposed acquisition will provide certainty of tenure for SIGL for its office premises.
The proposed transaction will provide continued stability for the Applicant’s business resulting in greater efficiencies for the Applicant to provide enhanced domestic services in the New Zealand financial services sector.
[Decision number 200710067.] US subsidiary of Reading cinemas buys 26 ha. in ManukauLandplan Property Partners Manukau Trust, owned in the U.S.A. by Reading International Inc, has approval to acquire 26 hectares at 100 Prices Road, Wiri, Manukau City, South Auckland for $13,196,250 from Patrick Brian McAlister of Aotearoa.
Reading International is a subsidiary of Reading New Zealand, the major cinema owner, but its intention appears to be to become a real estate investor.
According to the OIO,
The Applicant is a wholly owned subsidiary of Reading New Zealand Limited (RNZ). RNZ is in the business of owning and operating cinemas and related real property interests in New Zealand.
The Applicant has no other business other than the proposed ownership of the property to which this application pertains. The land is to be owned by Landplan Property Partners New Zealand Limited in its capacity as Trustee of the Landplan Property Partners Manukau Trust.
The Applicant intends to seek a rezoning of the relevant land and the adjoining properties to create an environment for future commercial and industrial growth. The zoning change that is being sought is for industrial and commercial use to allow a combination of offices and warehouses.
The Applicant will allow part of the site to be available to owner-occupiers to develop themselves, which will allow them to meet their own requirements. The remaining land will be developed and leased to businesses on long-term commercial leases.
Reading is currently in the real estate business in Australia and the United States, and owns the real estate associated with some of its New Zealand cinema assets. Reading intends to expand its New Zealand real property holdings, principally through investments in real estate holding trusts such as the Trust.
[Decision number 200710070.] Ariadne Australia buys Orams Marine Village in AucklandAriadne Australia Limited, owned 95.78% in Australia, 0.29% by “various overseas persons”, and 3.93% in Aotearoa, has approval to acquire · 1.9 hectares of leasehold at 142 Beaumont Street, Auckland; and · A licence interest in 1 hectare of foreshore and waterspace “being the foreshore and waterspace described in the Foreshore and Waterspace Licence dated 4 June 1998 entered into between Ports of Auckland Limited (Licensor) and Orams Marine (Auckland) Limited (Licensee), Auckland” for $42,900,000 from Orams Marine Village Unit Trust, Orams Management Limited, Orams Marine Boatpark Limited and Orams Marine Holdings Limited of Aotearoa.
The land “is or includes the foreshore or seabed” and “adjoins the foreshore”.
The OIO states:
Ariadne is currently pursuing marina and marine services related acquisition opportunities, which will complement its existing marine portfolio.
Ariadne has a strong capital backed investor network and an experienced management team that plans to further increase the reputation of Orams as a world class boat stacking and marine services facility. The Ariadne Marina will apply its existing knowledge and in house marina and property management skills to the asset.
Orams Marine Village is located in a strategic area close to the Auckland CBD and is of significant importance to the Auckland boating sector. Ariadne understands that New Zealand is a significant player in the world marine services industry. The Applicant wishes to ensure the businesses operating at the site continue to prosper by deploying appropriate resources and management techniques.
A press release from Ariadne (Scoop, “Ariadne Acquires Orams Marine Village In NZ”, 6/6/07, http://www.scoop.co.nz/stories/BU0706/S00072.htm) gives more explanation: Ariadne is acquiring Orams Marine Village, but not the trading business of the Orams group of companies which “will continue to operate on the site under long-term lease arrangements”. Ariadne’s current marina interests are on the east coast of Australia. The press release states:
Ariadne has entered into the transaction with a group of private investors and will retain a 50% shareholding and a long-term management contract for the marine services centre.
Orams Marine Village is located in the Western Viaduct area within one kilometre of the Auckland CBD and comprises:
· A 350 vessel dry stack · An international super-yacht slip way · A vessel repair yard · A full marine service centre where the repair, maintenance and rebuilding of vessels can take place across 30 tenancies · A conference/departure lounge and associated facilities
[Decision number 200710071.] Macquarie Goodman buys Manukau Council land for Savill Link developmentMacquarie Goodman Nominee (NZ) Limited as nominee for the Macquarie Goodman Property Trust, owned 20.4659% in Australia, 8.4293% by “various overseas persons”, 2.5857% in Aotearoa by Goodman Holdings, and 68.5191% in Aotearoa by minority shareholders, has approval to acquire 5.1296 hectares at 179 James Fletcher Drive, Otahuhu, Manukau, South Auckland for $4,612,500 from the Manukau City Council. The land adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area.
According to the OIO,
The Applicant proposes to acquire the land to develop an industrial estate with associated office space. The land is located in the vicinity of the Applicant’s Savill Link development. The acquisition will also assist with access to the main Savill Link development with the Manukau City Council to undertake infrastructure works on the adjacent land in order to complete vehicular access between James Fletcher Drive and the two properties.
For details of the first approval regarding to this development, see our commentary for May 2004.
[Decision number 200710074.] Cedenco of the US buys Mountain Carrots New ZealandCedenco Foods, owned by SK Foods, in turn owned by Frederick Scott Salyer of the U.S.A., has approval to acquire the remaining 43.75% it does not already own of Mountain Carrots New Zealand Limited for $833,886 from the company’s minority shareholders, Ken Sue, Cyril Sue, Nancy Sue and Jin Sue (50%), Sonny Chan, Peter Dennis Brown and Sewell & Wilson Trustee Limited as trustees of the Sonny & Brenda Chan Family Trust (25%), and Henley Chan, Betty Chan and Malcolm Craig Chan and Sewell & Wilson Trustee Limited as trustees of the Henley and Betty Chan Family Trust (50%), all of Aotearoa.
Mountain Carrots owns 1.4 hectares of land at Old Station Road, Ohakune, King Country which “adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area”. The land is to be sold to the above minority shareholders and leased back Cedenco.
According to the OIO,
On 1 October 2005, SK Foods received consent from the Overseas Investment Office to acquire 56.25% of the shares in Mountain Carrots New Zealand Limited (MCNZ), a company that operates an export carrot packing facility at Ohakune. Carrots are purchased from growers by Sunrise Coast New Zealand Limited (Sunrise Coast) (a wholly owned subsidiary of Cedenco) and packed by MCNZ. The packed carrots are then exported by Sunrise Coast.
SK Foods and its wholly-owned subsidiary Cedenco Foods (Cedenco) propose to acquire the remaining 43.75% of the shares in MCNZ from the minority shareholders of MCNZ. It is proposed that contemporaneously with the share acquisition that the land will be sold by MCNZ to the minority shareholders of MCNZ and then leased back to MCNZ under a lease. Cedenco proposes to acquire the shareholding to grow its New Zealand fruit and vegetable processing business.
For details of Cedenco’s 2005 purchase of the 56.25% interest in Mountain Carrots (plus other assets) from Sunrise Coast, owned 7.89% in Japan and 92.11% in Aotearoa, see our commentary on the September 2005 decisions of the OIO.
[Decision number 200710069.] Kupe Joint Venture buys further land for gas production stationKupe Joint Venture, owned 45.05% in Australia, 4% in Japan by Mitsui & Co. Limited, 2.275% in the U.S.A., 1.45% in the U.K., 1.225% by “unknown overseas persons”, 31% in Aotearoa by Genesis Power Limited, and 15% in Aotearoa by minority shareholders, has approval to acquire 170 hectares at Inaha Road, Manaia, Taranaki from Edward Michael Bourke and the Bourke Family Trust of Aotearoa. The land “either alone or together with any associated land” adjoins land held for conservation purposes and includes a historic place, historic area, wahi tapu, or wahi tapu area that is registered or for which there is an application or proposal for registration under the Historic Places Act 1993 and that is an esplanade reserve, esplanade strip, recreation reserve, a road or a Maori reservation, that adjoins the sea or a lake.
Although the price paid has been suppressed by the OIO, it can be calculated from their statistics: it is $16,645,652.
According to the OIO,
The Kupe Joint Venture was formed to carry out exploration for, and development and production of, petroleum within the area specified by Petroleum Mining Licence (PML) 38146 which includes the Kupe gas field, situated 30 kilometres off the South Taranaki coast. Development and production is now the primary focus of the Kupe Joint Venture. The development is known as the Kupe Gas Project.
New Zealand’s demand for gas has been met primarily by the Maui gas field for the past 25 years. The Kupe field was discovered in 1986 but has remained undeveloped largely due to the abundant gas flowing from Maui making the development of Kupe uneconomic. However, with the redetermination of the Maui gas reserves and the rapid increase in domestic gas demand for electricity generation, the development of the gas field is now both economical and vital in meeting New Zealand’s energy needs.
On 30 August 2006, the Kupe Joint Venture was granted consent to acquire 123.7327 hectares of land situated at Inaha Road, RD11, Hawera to conduct and operate a gas production station (Production Station) to convert the petroleum recovered from the Kupe gas field into its usable forms – natural gas, condensate and liquified petroleum gas (LPG). That investment involved the acquisition of 30.6549 hectares from Edward Michael Bourke (Bourke) and the acquisition of 93.0778 hectares from Wayne Ernest and Glenda May Scott (Scott). The Production Station required approximately 20 hectares of land and was to be constructed on the land acquired from Bourke. The Kupe Joint Venture on-sold the Scott land to Mr Bourke to enable Mr Bourke to continue his dairy farming business.
Due to a change in the design of the Production Station, the Kupe Joint Venture now proposes to acquire the subject land from Mr Bourke. The land proposed to be acquired by the Kupe Joint Venture includes land that was always held by Mr Bourke, in addition to the land that was acquired by the Kupe Joint Venture from the Scotts and on-sold to Bourke.
Part of the land proposed to be acquired is required for the construction and operation of the Production Station. In addition, the change in design and the increasing size of the Production Station makes it desirable to increase the buffer zone surrounding the Production Station.
See our commentary for August 2006 for the earlier approval.
[Decision number 200710061.] Rausing family (Ingleby Company) adds 595 hectare Katoa Station in GisborneThe Ingleby Company Limited, owned 100% in the U.K. by The Ingleby Trust, has approval to acquire 595 hectares at Whakaangiangi Road, Te Araroa, Gisborne for $4,195,125 from Murray Heaton Pike and Linda Margaret Pike of Aotearoa. The land “either alone or together with any associated land” adjoins land held for conservation purposes.
According to the OIO,
The Ingleby Company Limited (Ingleby) proposes to acquire Katoa Station (Katoa). Ingleby proposes Katoa will be farmed in conjunction with Ingleby’s existing East Coast farming operation which comprises Pakira Station and Waikura Station. The acquisition of Katoa will provide Ingleby with an opportunity to add more weight to lambs finished on Ingleby’s East Coast farms, finish more lambs for processing, and improve flock performance and the breeding programme undertaken on Pakira Station and Waikura Station.
Ingleby Company is owned by the controversial Rausing family. Their last approval for a land purchase was in March 2004 when they bought 272 hectares at Geraldine, Canterbury. In November 2001 they bought the 5,381 hectare Puketoro Station in Ihungia Road, Te Puia, Gisborne and in December 2002, 1,951 hectares at Waitahaia Station and Ruatahunga Station, Tokomaru Bay, Gisborne. The above-mentioned Pakira Station was acquired in September 2000 and the Waikura Station in August 2001. See our commentaries for those months for further details, and that for February 2002 for detail on the Rausing family.
[Decision number 200710063.] CDL Land buys further land near Christchurch for subdivisionCDL Land New Zealand Limited, owned 23.6261% in Singapore by the Hong Leong Group, 21.5394% in Singapore by minority shareholders and 54.8345% in Aotearoa, has approval to acquire 5.47 hectares at 440 Prestons Road, Christchurch, Canterbury for $2,148,750 from Alpine View Lifestyle Village Limited of Aotearoa. (In fact CDL Land is a subsidiary of CDL Investments New Zealand Ltd, which in turn is a subsidiary of Millennium and Copthorne Hotels New Zealand Limited which is controlled by the Hong Leong Group.)
According to the OIO,
Land development and subdivision is CDL’s core business and it is intended in due course that this land will be subdivided into approximately 60 standard residential sections and made available for sale on the open New Zealand market. CDL anticipate the total time frame for the development and sale of the 60 lots to take 4 years from commencement.
In 2006, the Applicant acquired 13.7163 ha of adjoining land to the subject property at 432 Prestons Road, Christchurch. This transaction would significantly enhance the ongoing viability of the portfolio of properties currently owned/operated by CDL. The intended transaction is vital for the continued growth of the company.
See our commentary for September 2006 for further details of the earlier purchase.
[Decision number 200710062.] Australian buys Wanaka propertyTanya Louise Simmonds of Australia has approval to acquire 5.6 hectares at 299 Mt Aspiring Road, Wanaka, Otago for $4,200,000 from Paul Duncan Leuch and Mary Jane Leuch of Aotearoa. The land adjoins land held for conservation purposes under the Conservation Act 1987.
According to the OIO, “The Applicant wishes to reside permanently in New Zealand with her family, as it provides an ideal lifestyle for her children and her husband to begin his retirement. The property will be purchased from the Applicant’s own resources. The principal source of the funds will be the sale of the property currently owned in England. The Applicant intends to move her family from the UK to occupy the property as their permanent residence.”
[Decision number 200710073.] Summary statisticsAll investments This was a huge month, dominated by the $8.5b purchase of Alinta, though that was from one overseas owner to another and mainly concerned assets in Australia, but there were several multi-hundred-million dollar transactions as well.
As a result, the gross value of investment approved in the year to June 2007 is more than five times that for the previous June year, and the net value (i.e. disregarding sales from one overseas investor to another, and discounting part New Zealand ownership of the assets) has over doubled. By far the greatest part of the value of the approvals is for sale from one overseas investor to another.
Investment involving land Gross and net sales of land approved by the OIO during the year to June have fallen considerably in area compared to the previous year, due to very large sales in June last year (mainly Matariki Forests which owns 92,000 hectares sold by one overseas owner to another). Refusals (above) have risen in number and value (but not area), but are still a tiny proportion of the total.
Fishing Quota There was no fishing quota approved for sale this month or this year.
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Compiled by: Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
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