February 2005 decisionsCHH/Rubicon’s biotechnology/nursery operation buys Gisborne property Whenuapai properties to AMP NZ Property Developments for shopping centre Controversial purchase of camping ground and lifestyle properties in Northland Murchison land exchange between US investor and Department of Conservation Nikken Foods buys more land near Oamaru
Toll buys J D LyonsToll Logistics (CL) Limited, owned in Australia, has approval to acquire J D Lyons & Co Limited from its shareholders Dennis David Lyons and John Raymond Lyons, each with 50% and both of Aotearoa. The price has been suppressed. The purchase includes 4.5 hectares of leasehold at 49C and 49D Nesdale Avenue, Auckland.
Toll Logistics is a subsidiary of Toll Limited, owner of New Zealand’s rail system. According to the OIC, Toll
proposes to acquire 100% of the shares in J D Lyons & Co Limited which carries on the business of transport, distribution, warehousing and storage logistics in New Zealand. It provides specialised warehousing and distribution for products from its bases located in Wellington, Auckland and Christchurch.
The proposed acquisition will enable Toll to develop a more significant presence in New Zealand following previous acquisitions in the New Zealand transportation and logistics industry including the acquisition of a 84.6% interest in Toll NZ Limited (previously named Tranz Rail Holdings Limited). [Decision number 200510023.] CHH/Rubicon’s biotechnology/nursery operation buys Gisborne propertyCarter Holt Harvey Limited and Rubicon Limited own a 50/50 partnership, Horizon2 Partnership, which merges the “extensive forestry biotechnology and propagation operations of each company”. Horizon2 has approval to acquire · 48 hectares at Whatatutu Road, Te Karaka, Gisborne and · 25 hectares of leasehold at Whatatutu Road, Te Karaka, Gisborne for $3,113,768 from Puha Nursery Limited owned by Graeme John Falloon and Patricia Kay Falloon and Lyall Peter Evans of Aotearoa.
According to the OIC, the applicant, Horizon2 Partnership,
is an incorporated 50/50 partnership between wholly owned subsidiaries of New Zealand listed companies Carter Holt Harvey Limited and Rubicon Limited, merging the extensive forestry biotechnology and propagation operations of each company into a new venture. The Applicant’s focus is on accelerating the availability of improved tree stocks and improving the value of customers’ forests through the planting of superior quality tree stocks. The Applicant currently produces approximately 21 million treestocks annually from 5 nurseries in the North and South Islands as well as in Australia.
The Applicant proposes to acquire the subject property which is currently owned by Puha Nursery Limited. Puha Nursery Limited is New Zealand’s largest single forest nursery, growing almost 20% of New Zealand’s requirements each year. The proposed acquisition will provide the Applicant with a physical presence on the North Island East Coast region to service forestry companies operating within that region.
According to Horizon2’s website, at http://www.horizon2.co.nz/aboutus.cfm the company has its headquarters and principal research facilities at Te Teko, 20km from Whakatane in the Bay of Plenty. The Te Teko research facility includes “PC2 laboratories and Level 3 quarantine bio-facilities”. The company also has nursery facilities in Aotearoa at Kaikohe, Rotorua, Tokoroa, Te Teko and Nelson, and in Australia at Colac (Victoria). It has greenhouse facilities in Rotorua and Te Teko and seed orchards in Awatere, Amberley and Te Teko “for the production of elite pedigree Radiata seed stock”.
The company clones the trees:
The merger [brought] together the two principal clonal propagation technologies of organogenesis and somatic embryogenesis.
Organogenesis (tissue culture) is the practice of propagating identical copies (clones) of an individual plantlet by excising tiny pieces of tissue in vitro and, using specific media, encouraging each to form a genetically identical plant.
Somatic embryogenesis involves propagating multiple embryos from the embryogenic tissue proliferated from a single seed. One of the key benefits of the merger [was] to combine these two technologies, which will lead to a much more efficient and effective programme.
It claims to be the “largest commercial scale producer of clonal conifers in the Southern Hemisphere. In its first year Horizon2 projects sales of 19 million treestocks, of which 90% are Radiata. Of this, 2.7 million trees (nearly 16%) will be clonal. Horizon2 will produce nearly 2 million treestocks of other species—mainly Douglas fir and Eucalyptus.” It has a research contract with US based forestry biotechnology company ArborGen, a company 31.67% owned by Rubicon. “Horizon2 is currently providing services to ArborGen to help improve the pulping characteristics of Eucalypts destined for the Brazilian market.”
The OIC states that Horizon2 is ultimately owned as follows, which obscures the fact that it’s a 50/50 joint venture between CHH and Rubicon, and that CHH is 50.5% owned by International Paper Company Limited of the U.S.A. and Rubicon is 60.4% overseas owned and significantly controlled by Ron Brierley’s Guinness Peat Group:
· 25.25% – International Paper Company Limited, U.S.A. · 2.5% – Franklin Resources Inc of the U.S.A. · 17.5149% – other shareholders in the U.S.A. · 10.1594% – United Kingdom · 9.05% – Various persons who may be “overseas persons” · 4.869% – Australia · 0.2299% – Singapore · 0.1% – France, · 30.3269% – Aotearoa [Decision number 200510010.] Whenuapai properties to AMP NZ Property Developments for shopping centreAMP NZ Property Developments Limited, 89% owned in Australia and 11% in Aotearoa, has approval to acquire two properties at Whenuapai, Auckland from the Midgely family of Aotearoa: · 14.6 hectares at 19-21 and 35-39 State Highway 16 for $38,981,250 [Decision number 200510008]; and · 0.35 hectares at 17 State Highway 16 for $1,125,000 [Decision number 200510009].
These prices were initially suppressed but released on appeal in April 2006.
According to the OIC,
The Applicant is the development vehicle of the AMP NZ Property Fund, a diversified property fund investing in commercial office, industrial, retail and hotel development properties in New Zealand and is managed by AMP Henderson Global Investors (New Zealand) Limited. The Applicant is proposing to acquire the subject [properties] to develop a shopping centre along similar lines to the Botany Town Centre, the Northwood Supa Centre and the Manukau Supa Centre, owned by the AMP NZ Property Fund. Construction of the shopping centre is likely to commence within 5 years following completion of the consultation and resource consent process. Controversial purchase of camping ground and lifestyle properties in NorthlandIn three decisions, the OIC has given approval to Joy Ann Stockwell of the U.S.A. to acquire: · 0.82 hectares at 85-87 Scott Road, Tamaterau, Whangarei, Northland for $1,687,500 from Maureen Zena Ross and Peter Earl Bower Smythe of Aotearoa [Decision number 200510012]; · 2.9 hectares at 53 Riverside Drive and 33 Punga Grove, Whangarei, Northland for $582,750 from Cann Farms Limited owned by Joseph Bruce Cann and Gaye Hilda Colleen Cann of Aotearoa [Decision number 200510013]; and · 100 hectares at Whangarei Heads Road, Onerahi, Whangarei, Northland for $826,875 from MC & SL Gentil Family Trust of Aotearoa [Decision number 200510014].
The first purchase, which is a camping ground, has caused national controversy. The OIC blandly states:
The Applicant proposes to acquire the subject property which is currently operated as a Holiday Camp comprising cabins, chalets, camping sites and a shop. The Applicant proposes to upgrade the property by renovating and restoring the premises to attract increased tourists and offer improved amenities to the local community. The Applicant’s plans include the construction of a number of cabins and a seaside café.
The second is home for Stockwell. According to the OIC:
The Applicant proposes to acquire the subject lifestyle property which will be utilised as a home by the Applicant and as a base to oversee her other proposed investments in the Whangarei district.
And the last is for residential development. The OIC states:
The Applicant intends in the short term to continue to lease out the property for grazing. Within the next two to three years the Applicant intends to seek resource consent for a subdivision to create 16 six hectare lifestyle blocks.
The OIC states that “The Applicant is currently applying for a New Zealand Long Term Business Visa and intends to apply for New Zealand permanent residency once she is eligible to do so under the Long Term Business Visa scheme”. In each case, it asserts that “The Applicant is demonstrating a commitment to New Zealand through intending to apply for and taking up New Zealand permanent residency.”
Joy Stockwell is the former wife of Hollywood actor Dean Stockwell. The “Holiday Camp” is the Blue Heron Holiday Park. It is beside the beach at Tamaterau which juts out into Whangarei Harbour, about 14 km from Whangarei (New Zealand Herald, “US buyer wins slice of Northland”, 13/2/05, p.A11). This purchase became a part of a growing concern at camping grounds being sold to property developers. The National Party responded by saying it would require the Department of Conservation to find 25 areas where camping grounds could be run private operators (Press, “Nats to protect camping culture”, 29/3/05, p.A4). They would presumably be on conservation land or they would not resolve the problem.
However, perhaps because of the public concern and resistance from locals, the New Zealand Herald reports that Stockwell pulled out of the Blue Heron deal 48 hours before it was to be settled, leaving the sellers “gutted”. Most of the tenants of the ground had left after being advised that Stockwell would be charging a significantly higher rent. Stockwell declined to give reasons. The sellers, Maureen Ross and Peter Smythe, had stopped Stockwell’s visits to the camping ground on 1 February, after having previously allowed it to discuss issues with tenants, because she “created mayhem and misery with her demands and her treatment of tenants”. Ross said that the community had been “fantastically supportive”. (New Zealand Herald, “American pulls out of park deal”, 8/4/05, p.A9.) Murchison land exchange between US investor and Department of ConservationWayne Francis Pate of the U.S.A., has approval to acquire 11.6 hectares at Six Mile Creek, Matakitaki, Murchison, Nelson, for $7,000 from the Department of Conservation, owned by The Crown.
The land is part of a land swap after Pate planted Conservation land in pine trees. In June 2000, Pate received approval to acquire 59 hectares of land at Matakitaki Road, Murchison, for $67,500. Ten hectares were at the time planted in Pinus Radiata seedlings, and the OIC said that the remaining land, which was “unproductive scrub”, would be planted in the same way. (See our commentary for that month for further details.)
The OIC now states:
The Applicant, who acquired a property located at Six Mile Creek, Matakitaki, Murchison in 2000 for forestry, has entered into a boundary exchange agreement with the Department of Conservation (who manage the adjoining stewardship land under the Conservation Act 1987), whereby the Department will gain 7.5 hectares of native beech forest in exchange for 11.6 hectares of open grassland now planted in pines.
In 2001, the Applicant hired a contractor to plant forestry on his property which was grassland/bracken hill slope. The adjoining conservation area was then in a similar cover with no obvious clues to where the boundary between the properties was located. This resulted in an area of conservation land being planted in pines up to a beech covered ridge. As a result the Applicant has held discussions with the Department of Conservation as to how to rectify the situation. It is considered that the proposed land exchange will result in a practical result for management purposes for both parties. The proposed exchange will rationalise an awkward cross-slope common boundary between the parties.
The proposal is likely to result in a rationalisation of the boundary between the Applicant’s property and the Department of Conservation’s property, whereby the Department will acquire an area with strong conservation values for addition to the Conservation Estate. [Decision number 200510025.] Land for forestry· The Lo and Hsu Family Trust of Taiwan has approval to acquire two blocks of land through the New Zealand Forestry Group: · 28 hectares at Hawera I Forest, Tangahoe Valley Road, Hawera, Taranaki for $249,493 from Mei-Ying Chung of Aotearoa [Decision number 200510015]; and · 21 hectares at Mahuri 2000 Forest, Mangamahu, Wanganui for $138,701 from Viga Family Trust of Taiwan [Decision number 200510016].
According to the OIC regarding the first approval, “The subject property is a unit of the Hawera I Forest which has been acquired and developed by way of sale of lots by the New Zealand Forestry Group (NZFG). The overall Hawera I Forest comprises approximately 630.7 hectares of planted land near Hawera that was planted in 1997. In effect the overall Hawera I development is a joint venture between overseas persons who provide development capital and NZFG who provide management expertise.”
Regarding the second approval the OIC says: “The subject property is a unit of the Mahuri 2000 Forest which has been acquired and developed by way of sale of lots by the New Zealand Forestry Group. The overall Mahuri 2000 Forest comprises approximately 197.4 hectares of planted land near Wanganui that was planted in 2000. In effect the overall Mahuri 2000 development is a joint venture between overseas persons who provide development capital and NZFG who provide management expertise.”
In both cases, “Following the acquisition the forestry lot will continue to be managed by a subsidiary of NZFG.”
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 November 1999. The last such deal at Mahuri was approved in September 2000. That approval involved two purchasers including the present vendors, the Viga Family Trust. It is now apparently selling its land. New Zealand Forestry Group has similar operations at Paparangi, Wanganui, and elsewhere. The last decision outside Hawera was in December 2004. See our commentary for those months for further details. · Juken New Zealand Limited (formerly Juken Nissho), owned 85% by Wood One Company Limited, 13% by Yusho Nakamoto and 2% by Toshio Nakamoto, all of Japan, has approval to acquire 492 hectares at Cricklewood Road, Wairoa, Gisborne for $943,875 from Whakatu Afforestation Trust of Aotearoa. The OIC states: “The Applicant proposes to acquire the subject property which contains approximately 480 plantable hectares. The current forest rotation is 20 to 25 years old and will soon be harvested. The agreement entered into between the Applicant and the vendor is subject to a forestry right enabling the vendor to harvest the forest from the land. This acquisition will provide the Applicant with a further secure supply of wood which will be processed at its Gisborne processing mill.” In November 2004, Pan Pac Forest Products Limited of Japan received approval to acquire 1,007 hectares of leasehold at Te Kowhai Forest, Hawkes Bay, also from Whakatu Afforestation Trust. See our commentary for that month for further details. [Decision number 200510020.] · GCG Forestry Limited, owned 50.9% by Carla Ann Glessing of Canada and 49.1% by Grant Clayton Glessing of Canada, has approval to acquire 29 hectares at State Highways 26 and 28, Wairoa, Gisborne for $180,000 from William Allison McKinnie and Michele Marie McKinnie, Sara Ann Leiman, Barbara Jeanne Groffy and RLC Inc which is owned 47% by the Grimm family, 38% by the McKinnies (as above), 12.5% by Leiman, and 2.5% by Groffy, all from the U.S.A. According to the OIC, “the Applicant proposes to acquire the subject property which has been established in pinus radiata forestry. On average the trees are 8 to 9 years old. The Applicant proposes to employ a forestry manager, PF Olson & Co Limited to manage the forest. The Applicant intends to replant the forest for a further rotation.” RLC Inc gained approval to acquire “approximately” 500 hectares of land in Kotare Road, Marumaru, north of Wairoa, Hawkes Bay for $800,000 in June 1995 – see our commentary for that month for further details. [Decision number 200510027.] · Cherish Holding International Limited, owned by Angela Poon of the U.S.A., has approval to acquire 48 hectares at 130 Finlays Road, Windsor, Oamaru, North Otago for $461,249 from Lindsay Rodger Purvis and Beverley Joy Purvis of Aotearoa. The OIC states: “The Applicant proposes to acquire the subject property which was planted in pinus radiata forestry in 1995. The Applicant advises that the rationale behind the acquisition is to diversify the family investments geographically and into primary products that are likely to be in demand by South East Asian economies.” [Decision number 200510024.] Land for wine· Nobilo Wine Group Limited, owned by Constellation International Holdings Limited of the U.S.A., has approval to acquire 0.25 hectares at 53 Station Road, Huapai, Auckland for $1,100,000 from Valerie Laures Legge of Aotearoa. According to the OIC, “the Applicant (Nobilo) proposes to acquire the subject property which is located immediately adjacent to land owned by Nobilo and utilised as Nobilo’s principal headquarters, a vineyard and a winery. The subject property is currently used for residential purposes. Nobilo intends to convert the house on the property into office space. The proposed acquisition will ensure that the need for additional office space will not impinge on Nobilo’s existing productive land.” [Decision number 200510019.] · Peter Charles Bell and Gwendoline Mary Bell of the U.K. have approval to acquire 9.0 hectares at 5 Whakapirau Road, Hastings, Hawkes Bay for $1,600,000 from David Herbert Harley and Rosalind Gay Harley and Malcolm Ian Taylor as trustees of The Harley Trust of Aotearoa. According to the OIC, “the Applicants propose to acquire the subject property which has been developed as a small vineyard, grazing and lifestyle unit. The vineyard contains approximately 1.5 hectares established as a vineyard planted in Merlot and Syrah. The Applicants are applying for New Zealand permanent residency under the Family (Parent) category. The Applicants are demonstrating a commitment to New Zealand through applying for and taking up New Zealand permanent residency.” [Decision number 200510026.] · Allied Domecq Wines (NZ) Limited, owned by Allied Domecq Plc of the U.K. and owner of the largest winemaker in Aotearoa, Montana, has approval to acquire 28 hectares at Jacksons Road, Blenheim and West Coast Road, Blenheim, Marlborough for $5,600,000 from Giesen Wines Limited, owned 33.34% by Theodore Kurt Giesen, 33.33% by Alexander Ernst Otto Giesen, and 33.33% by Marcel Gustav Giesen, all of Aotearoa. According to the OIC, Allied Domecq, “is the largest participant in the New Zealand domestic wine business and future growth opportunities are limited. 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 Jackson Road property is currently planted by the vendor in Chardonnay and Sauvignon Blanc. The West Coast Road property is currently planted in Pinot Noir and Sauvignon Blanc.” [Decision number 200510017.] Nikken Foods buys more land near OamaruNikken Seil Co Limited (formerly known as Nikken Foods Co Ltd), owned 74% by Hirotomo Ochi of Japan and 26% by other shareholders in Japan, has approval to acquire 158 hectares at 291 Maheno-Kakanui Road, North Otago for $2,362,500 from James Trevor Pringle and John Richard Pringle and HGW Trustees Limited as trustees of the Willowbank Park Trust Pringle of Aotearoa.
The company has been building up its land ownership for some time. Its last such purchase was approved in April 2004. See our commentary for that month for further details.
According to the OIC:
The Applicant was founded in 1964 and has subsequently become a pioneer in the development, manufacture and marketing of natural food flavourings. The Applicant’s aim is to supply food products that are beneficial to health and it manufactures more than 1,000 natural flavourings. Within the Applicant’s group structure there is a high importance on research and development including the Institute for the Control of Ageing, the Research Institute for Future in Foods and the Health and Fitness Institute.
The Applicant’s chairman has discovered that North Otago is the perfect setting for the international expansion of the research and development programme. In 2000, the Applicant acquired a property known as Teschemakers to establish an international college for post-graduate international and New Zealand students of health science. The Applicant envisages that the international college will encourage and promote post-graduate study, research and development in the area of organics and healthy-living. This will provide demand for workable tracts of land with boundaries free of contamination from insecticides, herbicides and genetically engineered plants and crops.
Since 2000, the Applicant has received consent to acquire 297.7761 hectares located near Teschemakers for the purposes of progressing its work in sustainable organic and healthy farming. The Applicant advises that the acquisition of the subject property represents the extent of the land required to meet the Applicant’s current and immediate future requirements. By careful management of the properties acquired to date, the Applicant has received Conversion 1 AgriQuality organic standard with respect to all but the most recently acquired land. Conversion 1 status allows local New Zealand marketing from the lands on an organic certification. Within 12 months the Applicant expects to have obtained full organic certification for international marketing.
The Applicant advises that the most significant reason for the acquisition of the subject property is the nature of the soil structure. Land previously acquired by the Applicant predominantly falls within the “Waiareka” category of soils which will be predominantly used for the development of brassica crops. The subject property consists of soils categorised as “Wakanui” suitable for intensive cropping and/or pastoral farming. The Applicant advises that the land has the necessary characteristics for the development of non-brassica type crops such as onions. The subject property is also likely to be utilised as the Applicant’s base farm for livestock grazing.” [Decision number 200510022.] Other rural land sales· Nicholas James Gaites and Christina Gaites of the U.K. have approval to acquire 10.9 hectares at Puhipuhi Road, RD2, Whangarei, Northland for $215,000 from Kenneth Ivan Dromgool of Aotearoa. According to the OIC, “the Applicants are applying for New Zealand permanent residency under the Skilled Migrant category. Mrs Gaites is employed as a veterinary nurse in Browns Bay, Auckland. The Applicants propose to acquire the subject property for a permanent residence. The Applicants are demonstrating a commitment to New Zealand through applying for and taking up New Zealand permanent residency.” [Decision number 200510018.] · Bilsdale Orchard Limited, owned 75% by David Bowens of the U.K., 12.5% by Jillian Anne Lawson of Aotearoa and 12.5% by Denis Kent of Aotearoa, has approval to acquire 7.4 hectares at 5 Thompsons Track, Katikati, Bay of Plenty for $1,957,500 from Peter Carr and Helen Diane Carr of Aotearoa. According to the OIC, “the Applicant proposes to acquire the subject property which contains 4.25 hectares that has been established as a kiwifruit orchard. A further area of 0.4 hectares is available for further planting. The majority shareholder of the Applicant (David Bowens) intends to apply for New Zealand permanent residency under the Business Investor category and reside permanently in New Zealand. The Applicant’s majority shareholder is demonstrating a commitment to New Zealand through applying for and taking up New Zealand permanent residency.” [Decision number 200510021.] · Christopher Roy Painter and Marian Painter of the U.K. have approval to acquire 2.1 hectares of freehold land and 0.015 hectares of leasehold at 2387 Moutere Highway, Lower Moutere for $390,375 from Andrew Gordon Smith of Aotearoa. According to the OIC, the Painters “are in the process of applying for New Zealand permanent residency under the Skilled Migrant category and propose to acquire the subject lifestyle property. The Applicants intend to relocate to New Zealand in October 2005 and reside on the property. The Applicants are demonstrating their commitment to New Zealand through applying for and taking up New Zealand permanent residency.” [Decision number 200510011.] Summary statisticsAll investments The gross value of investment approved in the year to February 2005 is considerably lower than for the previous February year, but the “net” value (i.e. disregarding sales from one overseas investor to another, and discounting part New Zealand ownership of the assets) is about the same as the last year to February. Unusually, most of the value of the approvals for February is for sales from New Zealanders to an overseas investor: last month and last year to February, most was from one overseas investor to another.
Investment involving land There have been no applications refused so far this year. Both gross and net sales of land approved by the OIC during the year to February are very similar in area. The gross hectares approved are however very much smaller than at the same time in 2004. The net hectares sold at February 2004 were negative – an artefact of the OIC’s method of defining “net”.
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Compiled by: Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
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