November 2001 decisionsTelstraSaturn takes over Clear O’Reilly moves ownership of Wilson and Horton to APN, Australia Financial consortium buys Pacific Brands from Pacific Dunlop Takapuna Golf Course sold to another Korean when owner leaves country U.S. investors to develop fishing lodge and tourism on Ruakituri River, Gisborne
TelstraSaturn takes over ClearIn three decisions, the OIC gives approval for: · Telstra Corporation Ltd of Australia to raise its shareholding in TelstraSaturn Ltd from 50% to 65% for a sum to be advised. The shares were being sold by AUSTAR United Communications Ltd, which is 81% owned by United Global Com Inc of the U.S.A. and 19% by minority shareholders in Australia. The price is “to be advised”. · TelstraSaturn Ltd to acquire Clear Communications Ltd from Newgate (NZ) Holdings Ltd, a subsidiary of British Telecommunications PLC of the U.K. TelstraSaturn, after the previous transaction, would be owned 65% by Telstra Corporation of Australia and 35% by AUSTAR United Communications Ltd, in turn owned as above. The price is “to be advised”. · In a less important transaction preceding the above two, TelstraSaturn Ltd, at that time 50% owned by Telstra Corporation Ltd of Australia and 50% by AUSTAR, to acquire 0.64 hectares at 952 Great South Road, Penrose, Auckland for $1,406,250. TelstraSaturn “has built a substantial, modern state of the art telecommunications facility on the property. The property is strategically placed for the Applicant being in a fully industrial area between the Onehunga landing site of the Applicant’s submarine cable and the Auckland motorway. The facility will provide a local telecommunications backbone within the Auckland area and will also link the Applicant’s national operations to international cable connection points at Whenuapai and Takapuna.”
The second decision is the most important. According to news reports, TelstraSaturn paid British Telecom $143 million for Clear and took on $270 million in loans payable to British Telecom. Adding external debt, the total price was about $435 million. Telstra forecast savings of $100 million over the next five years (Press, 16/11/01, “Review of Chch cable”, p.10). The new company will be called TelstraClear, with 300,000 customers and claims to have about 11% of the market (Press, 13/12/01, “New TelstraClear aims to be strong competitor”, p.15).
The takeover eliminates a major element of competition in the telecommunications industry. But don’t worry. The OIC explains it thus:
“Both the Applicant and Clear operate in areas of the telecommunications market with some, but generally limited, overlap. Both companies have planned to expand in their own and into each others market segments. This would require substantial direct investment by both companies. It is deemed to be inefficient for both to continue to duplicate their assets and business structures in the relatively small New Zealand market given the level of market dominance of Telecom. The proposed transaction is likely to produce a competitor in the market with a critical mass which will result in more effective competition and will allow for the planned expansion in a more efficient manner.”
The takeover was also the subject of a Commerce Commission investigation. In its decision (7/12/01, no.447), the Commerce Commission approved the takeover. It noted that
Clear employs more than 770 people. It offers a range of voice, data, broadband and narrowband Internet and e-commerce services. It owns ClearNet and Zfree ISPs [Internet Service Providers]. Clear has fibre optic networks in the CBDs of Auckland, Wellington, and Christchurch. Clear owns a fibre-optic backbone system that carries voice and data traffic nationally. It also has a digital microwave broadband network.
And that
TelstraSaturn Ltd (TSL) was incorporated in New Zealand on 19 July 1999. Its shareholders are Austar United Communications Limited, Telstra Holdings Pty Limited and Saturn (NZ) Holding Company Pty Limited. TSL currently employs more than 900 staff. It offers voice, broadband and narrowband Internet, data, wireless, and cable TV services to residential and business customers. TSL also runs the internet service provider (ISP) Paradise.net, which has an estimated [ ] customers and owns a web design company, Zivo. TSL has built fibre optic networks in Wellington and Christchurch and prior to the date of the application, had taken steps to obtain resource management consent to build a network in Auckland. It has recently completed a submarine fibre optic cable connecting Auckland, Wellington and Christchurch that carries voice and data traffic.
TelstraSaturn had been more than halfway through the $200 million rollout of its network in Christchurch. The competition was forcing down Telecom’s prices but the viability of the project was increasingly in doubt. In November 2001, TelstraSaturn was slowing its investment in the scheme, and laid off about 150 staff. The slowdown was in part because Austar was in financial trouble in Australia, having lost more than $A625 ($778 million) since 1999 and was looking for joint venture partners in Australia (Press, 9/11/01, “TelstraSaturn roll-out slows”, p.14; 15/11/01, “Austar and Optus may agree on joint venture”, p.14). However, the investment in “local loop” connections to residential consumers was an obvious advantage for a combined operation with Clear, which had increasingly focussed on business services, despite its early bulldog reputation for challenging Telecom’s prices in a range of services including toll calls and internet provision.
However other observers were not as sanguine as the two Commissions about the preservation of competition. A report by Merrill Lynch Australia concluded that the takeover of Clear would reduce competition, leading to the loss of 500 jobs (from the combined company’s workforce of approximately 1,700) and higher prices for consumers. It would create a “duopoly fixed network telecomms structure in New Zealand for all but certain CBD areas where other fibre has been laid”. Telecom would benefit: “TelstraSaturn and Telecom NZ should experience some benefits from a reduction in general competition levels and pricing pressures across long distance voice, internet and mobile services.” But Telecom might also lose customers to a strengthened “local loop” service. On balance it would not pose a serious threat to Telecom’s dominant market position. (The Independent, 31/10/01, “Clear under Telstra: Higher prices, job cuts”, p.4).
Telecommunications Users Association of New Zealand (TUANZ) chief executive Ernie Newman said that “Two separate challengers to Telecom would have been a lot better – but at least this merged one should have real strength. Had the Government’s new regulatory regime been in place a few years ago, then TelstraSaturn and Clear would probably have flourished as separate entities and given Telecom and one another serious competition.” (Press, 16/11/01, “Review of Chch cable”, p.10.)
It seems likely then that it will be a cosy reinforcement of the status quo. That was the feeling when Telecom announced in December 2001 that it was raising a number of its charges including its standard monthly residential line rentals and the cost of off-peak national toll calls. Though it raised its charges less in Wellington and Christchurch where TelstraClear provided competition (and where Telecom had previously lowered it charges), TelstraClear said it had no plans to alter its prices (Press, 28/12/01, “Telecom lifting line rentals, off-peak toll charges”, p.1).
However, one expert, Australian telecommunications consultant Paul Buddle, questioned whether TelstraSaturn’s residential network would be viable given the size of the market until broadband (highspeed) applications became popular. Then electricity utilities could be competitors (U.S.-owned electricity lines company Utilicorp is branching out into fibre-optic cabling for example). It was unlikely the network would progress beyond Wellington, Christchurch and Auckland. Telecom had failed to maintain a competitive service in Aotearoa and had branched out into Australia (buying the company AAPT) rather than develop into broadband and higher value business services. If Telecom did not develop better services in those areas shortly, it may become a takeover target, and risked government intervention to ensure that the broadband infrastructure vital to the country’s progress was installed (Press, 29/11/01, “Danger signs for Telecom”, p.12).
And it leaves our telecommunications sector almost wholly overseas owned, ironic in the light of Telecom’s original development as a state-owned organisation, and Clear’s foundation as part of Television New Zealand. O’Reilly moves ownership of Wilson and Horton to APN, AustraliaAPN News and Media Ltd, which is 60% owned in Australia (through a listing on the Stock Exchange) and 40% owned by Independent News and Media PLC of Ireland, has approval to acquire Wilson and Horton Ltd from Wilson and Horton Holdings Ltd, a subsidiary of Independent News and Media, for a sum “to be advised”.
The move still leaves Independent News and Media controlled and 25% owned by Tony O’Reilly, in control of Wilson and Horton. It apparently had the aim of freeing up capital to stabilise the empire elsewhere. According to Bryan Gaynor (New Zealand Herald, 3/11/01, “Complex deal brings third owner”), “Sir Tony said the decline was the result of adverse currency movements, exceptional start-up costs and the increased financing charges associated with the acquisition of Belfast Telegraph Newspapers and a new Irish printing facility”.
“The deal has been struck to halt the flagging fortunes of Sir Tony’s three listed media companies in Ireland, Australia and New Zealand. Wilson and Horton exchangeable shares will remain listed on the New Zealand Stock Exchange and their performance will continue to be influenced by the share price movements of Independent News and Media on the Dublin Stock Exchange … The market price of Wilson and Horton’s exchangeable shares is determined by Independent News’ share price in Dublin because the exchangeables can be converted into the parent company’s ordinary shares on a two-for-one basis.”
As to price, Gaynor says
“In a complex transaction APN will buy Wilson and Horton from Independent News for $A809 million ($992 million) and will also assume debt of $A429 million from the New Zealand company. APN will issue $A551 million of new shares and $A250 million of convertible notes to finance the deal. Independent News will contribute up to $A473 million to APN’s capital raising, which will increase its shareholding in the Australian company from 40% to approximately 45%. Independent News will generate surplus funds in excess of $A300 million from the deal but it will also assume the remainder of Wilson and Horton’s debt.”
O’Reilly’s group has media operations in Ireland (26% of group revenue), United Kingdom (19%), South Africa (13%), New Zealand (20%) and Australia (22%). Its Australian activities are controlled through APN News and Media.
Wilson and Horton is publisher of New Zealand’s largest circulation daily newspaper, the Auckland-based New Zealand Herald, and has a one-third shareholding in The Radio Network, the largest commercial radio operator in Aotearoa (another 19% of the company is owned by APN). The Radio Network has 53 stations and more than 50% of advertising revenue (see http://www.wilsonandhorton.co.nz/about_wh). Wilson and Horton also has nine daily newspapers, over 30 free community papers, and operations in internet media, specialist publishing (including two weekly magazines) and commercial printing (under W&H Print Ltd).
According to the New Zealand Audit Bureau of Circulations, Wilson and Horton had 41.6% of the audited daily newspaper circulation as at March 2001, 28.1% of which came from the New Zealand Herald. With Murdoch-controlled INL, the two between them owned 81.9% of audited daily press circulation of the provincial newspapers (those with under 25,000 circulation), and 92.8% of the metropolitan readership (those newspapers with more than 25,000 circulation).
Its nine provincial newspapers are the Whangarei Northern Advocate, the Rotorua Daily Post, the Tauranga Bay of Plenty Times, the Te Awamutu Courier, the Hastings Hawke’s Bay Today (merged in April 1999 with the loss of 60 jobs from the Hawkes Bay Herald Tribune and the Napier Daily Telegraph), the Levin Chronicle, the Wanganui Chronicle, the Dannevirke Evening News, and the Oamaru Mail, all of which are dailies except for the Oamaru Mail. It owns the large-circulation weekly magazines New Zealand Listener and the New Zealand Woman’s Weekly and publishes magazines on contract, including Skywatch and AA Directions. Its give-away newspapers include those run by Community Newspapers Ltd and thirty-four community newspapers: the Whangarei Report; in Auckland the Shore Weekender, Manurewa Week, Waitakere Week, Papatoetoe & Otahuhu Week, Our Town Papakura, and Shore News; in Hamilton This Week and The Riversider, and the Te Awamutu Courier; elsewhere in the North Island the Whangamata Coastal News, the Katikati Advertiser, the Tauranga Bay News, the Rotorua The Weekender, the Taupo Weekender, the Turangi Chronicle, the Wanganui Midweek, the Levin The Weekly News, and the Kawerau Eastern Bay News; in Hawkes Bay, The Napier Courier, The Hawke’s Bay Sun, The Hastings Leader and the CHB Mail (Waipukurau); in Wellington the Independent Herald, Porirua News, Wainuiomata News, Western News, and Cook Strait News; and in Christchurch the Christchurch Star, Observer, Pegasus Post, News Advertiser, North Canterbury News, and Canterbury Times. It also publishes two tourist giveaways: N.Z. Thermal Air (Rotorua) and Auckland Tourist Times.
Its subsidiaries include commercial printers Comprint, Webprint, Colorgraphic International, Hutcheson, Bowman and Stewart, Bankprint, Security Print, W & H Graphics, The Print Place, Printcorp, Christchurch Star Print, Rotorua Printers Ltd, and CHB Print. It owns Stanley Newcomb & Co Ltd which markets toys, gift packaging and similar products. Other publishing subsidiaries are Universal Business Directories and Wises Publications (maps), Lands End Publishing, and book publishing arm, Wilson and Horton Publications. Security Plastics manufactures credit cards, and the group also owns Couriers NZ. (For further details and sources, see “News media ownership in New Zealand”, by Bill Rosenberg, available from CAFCA.) AXA takes over Sterling GraceS.H. Holdings Ltd, owned 51% by AXA SA of France, 48.23% in Australia and 0.77% in New Zealand, has approval to acquire Sterling Grace Portfolio Management Group Ltd for $247,627,976. Sterling Grace was owned 72.47% by the Grace Family of the U.S.A., 13.04% by C. Dawson and G. Kerr of Aotearoa, 13.35% by other New Zealand shareholders, and 1.14% in Australia.
In a news release on 17/10/01, AXA Asia Pacific announced that it had
“reached agreement to purchase Sterling Grace Portfolio Management Group Limited for $A201 million. Sterling Grace operates as Spicers in New Zealand and Monitor Money in Australia.
Spicers/Monitor Money is an integrated retail portfolio management group focusing on distribution via financial advisers. It has 62 in house advisers and 26 offices throughout New Zealand, and 26 in house advisers and 9 offices in Australia. It has over $A2.6 billion in funds under administration and has annual inflows of over $A500 million from both internal and external financial advisers…
“In New Zealand, Spicers and AXA will, together, be the pre-eminent retail investment manager and provider of financial planning services with around 13% market share in funds under administration. The acquisition of Monitor Money will accelerate our growth and penetration into the independent financial planning market in Australia”…
Wrap and Master Trust services are offered under the Assure brand in both Australia and New Zealand and are utilised by over 300 advisers. In addition the business includes Arcus, a very successful asset management business, in New Zealand.” Financial consortium buys Pacific Brands from Pacific DunlopPacific Brands Holdings (NZ) Ltd, ultimately owned 40% by Prudential Corporation Plc of the U.K., 30% by Citigroup of the U.S.A., and 30% by CVC Capital Partners Europe Ltd of the U.K., has approval to acquire “the business divisions known as ‘Pacific Brands’ of Pacific Dunlop Holdings (NZ) Ltd and/or its associated companies” for a sum “to be advised”. Pacific Dunlop Holdings (NZ) is owned by Pacific Dunlop Ltd of Australia.
“The divisions involve the sport and leisure group, footwear group, clothing group and household products group. The acquisition is part of a wider transaction, which also involved the Pacific Brands divisions in Australia. The applicant has a strong international presence that will assist in the development of the Pacific Brands business.”
The price paid and actual companies involved were explained in a Pacific Dunlop press release on 30/11/01, “Pacific Dunlop Sells Pacific Brands”, which stated:
Pacific Dunlop Limited today announced the sale of its Pacific Brands business to an investor consortium led by CVC Asia Pacific Limited and co-led by Catalyst Investment Managers Pty Ltd for $730 million, which, net of transaction costs, is in excess of the book value of the assets. The transaction is effective as at 30 November 2001. Depending on the financial performance of the business over the current financial year, Pacific Dunlop may receive additional consideration of up to $10 million. The Pacific Brands business had sales last financial year of $1.4 billion in clothing, footwear, household products and sporting goods in Australia and New Zealand. The present management team under Managing Director Mr. Paul Moore will remain with Pacific Brands after the transfer to the new owners. Proceeds from the sale of Pacific Brands will be applied to retire debt. This will strengthen the company’s balance sheet and substantially improve gearing ratios.”
Pacific Dunlop’s remaining business includes Ansell Healthcare, Beaurepaires, Goodyear and Dunlop Tyres.
CVC is the majority owner of Amatek, the owner of Formica (NZ) Ltd. CVC is a former arm of Citicorp, and is among the biggest private equity funds in the UK. See our commentary on the August 1999 decision approving the sale of Formica for further details. Takapuna Golf Course sold to another Korean when owner leaves countryC.K. Kim of Korea has approval to acquire the 44 hectares leasehold of the Takapuna Golf Course, Northcote Road, Takapuna, Auckland for $2,950,000 (plus GST). It is being sold by Strategic Mortgages Ltd, which is mortgagee of Takapuna Golf Course Ltd, owned by Sok Park Dae of Korea.
The previous owner appears to have defaulted on his payments and left the country. Kim
“proposes to acquire the leasehold interest of the Takapuna Golf Course as a result of a mortgagee sale. The current lessee is in default and has allegedly left the country. The proposal will ensure the continued operation of the golf course thus ensuring continued employment opportunities and availability of the facilities to the public of the region. The key fixtures on the golf course comprise the clubhouse, driving range and the administration building/pro shop. It is intended to invest a significant amount of capital into the property firstly for immediate maintenance and also to further develop the property. This will involve substantial investment in drainage works, an expansion of the driving range and improvements to the clubhouse. The result of the development to the golf course will be an improved course standard and an increased capacity of the course.” Land for forestry· Three families from Taiwan have approval to acquire blocks of land at State Highway 22, Te Akau Road, near Ngaruawahia, Waikato, from the New Zealand Forestry Group Ltd, which is owned 76% by Wesley Garratt of Aotearoa, and 24% by J. Hong of Taiwan. The purchasers are all members of the Brooklands Forest Group, which has “entered into an arrangement with New Zealand Forestry Group to develop approximately 1,200 hectares of land at Ngaruawahia”. The sale is like many in this and other regions organised by New Zealand Forestry Group, the last such sale being in October 2001, also in Ngaruawahia, with investors in the Brooklands Forest group. The investors provide the money, while New Zealand Forestry Group manages the development of the forestry operation. The details in this case are: · the Strobile House Family Trust is acquiring 17.5 hectares for $112,000; · the Golden-Lampstand Family Trust is acquiring 11.7 hectares for $74,880; and · Han-Wei and Han-Mei Huang are acquiring 20 hectares for $128,000. Land for wine· Sacred Hill Wines Ltd, 70% owned by the Mason Family of Aotearoa and 30% by the Jebsen Family of Hong Kong, has approval to acquire up to 50% of the Pinball Clothing Company Ltd, which “owns or hold rights to acquire” two blocks of land totalling 28 hectares at Gimblett Road, State Highway 50, Hawkes Bay for $1,162,500. Sacred Hill Wines already “has an extensive wine production business principally in the Hawkes Bay”. Approximately eight hectares of the land is already planted in grapes, but “Pinball does not have the financial resources or expertise to manage the proposed vineyard development”. The land is in a location “recognised as the premium red wine producing area in Hawkes Bay”. The company gained approval to acquire other land in August 2001. See our commentary for that month for more information on the ownership of the company. · Nobilo Wine Group Ltd, owned by BRL Hardy Ltd of Australia, has approval to acquire 97 hectares at Waihopai Valley Road, Marlborough, from Selak Properties Ltd for $14,062,500. Nobilo “wishes to acquire the property to further expand and develop its wine making and wine marketing activities. Securing sufficient grape supply to meet current and future demand is a key issue facing the Applicant. This proposal will secure additional long-term supplies of Sauvignon Blanc to assist bridging the gap between demand and supply with the projected development of the industry… The subject property is located in the vicinity of the Applicant’s existing vineyards. It is only partially planted in grapes at present, and the remaining 18 hectares of bare land is to be planted and developed over the next two years.” · In two decisions, investors from the U.S.A. have received approval to acquire blocks of land Gibbston Back Road, Gibbston Valley, Central Otago, from Gibbston Back Road Ltd. In both cases, they “propose to develop the property into a vineyard and plant the land in premium variety grapes with a specific focus on high quality French clones of Pinot Noir…” It is stated that “The property is well suited to vineyard development and the Gibbston Valley has been extensively planted in vineyards in recent years and supports three major wineries which process the local and regions grape production.” In both cases, “the vines on the land will be managed by Shamrock Limited and harvested and processed under the Peregrine Wines label whose wines enjoy a national and international reputation in the Premium Wine market.” The two are: · M.L. Holtzman, who has approval to acquire 5.9 hectares for $388,125, and “intends to visit the property frequently to monitor its operation and development and in this regard he intends to erect a dwelling on the property”; and · Richard and Patricia Allen who have approval to acquire 6.0 hectares for $385,312, and “intend to visit the property frequently to monitor its operation and development”. In February 2000, Wentworth Estates Ltd sold 6.0 hectares of land in Gibbston Valley to Vincent and Patricia Allen of the U.S.A. for $335,000 (see our commentary for that month). U.S. investors to develop fishing lodge and tourism on Ruakituri River, GisborneJ. R. Hanley and S.P. Suskiewich of the U.S.A. have approval to acquire 179 hectares at 1946 Ruakituri Road, Ruakituri Valley, Wairoa, Gisborne for $472,501.
The Ruakituri River “is one of the pre-eminent trout fisheries in New Zealand with excellent stocks of trout” according to the OIC. There are already commercial lodges and fishing tours available in the area for the wealthy (see for example http://www.longislandtoursnz.com/trout_fly_fishing.htm).
Much of the river is in Te Urewera National Park, and the draft management plan for the park proposes a Ruakituri Wilderness Area. Presumably this property is not in that area.
There are also two Treaty of Waitangi claims over the valley. Claims 481 and 506 were lodged by Charles Manehi Cotter on 9/6/94 and 12/4/95 respectively (see http://www.publicaccessnewzealand.org/files/treaty_claims_register_250.html and http://www.publicaccessnewzealand.org/files/treaty_claims_register_500.html).
The investors “have visited New Zealand frequently over the past 30 years on both business and holiday”. They
“propose to develop a fishing lodge on the property part of which abuts the Ruakituri river. It is located nearby to other world-class fisheries in the region. The establishment of a fishing lodge is consistent with tourism promotions being undertaken by local authorities. In conjunction with the fishing lodge the Applicants also propose to utilise the property for a small ornamental plant nursery and other tourism ventures – horse riding, bush walks and in the longer term as a small conference facility.
International and New Zealand urban anglers who are seeking a full service holiday retreat will be targeted via web-based marketing and leading US, European and New Zealand fishing journals. Existing relationships with a number of the region’s leading fishing guides will also be used to secure a strong base of guests.
The Applicants propose to convert 32.5 hectares of marginal grazing and erosion prone areas of the property into forestry with an emphasis of high quality wood for furniture manufacturing.
The Applicants propose to lease 139.5 ha to local farmers for grazing purposes. The vendors consider the property to have limited economic viability for agriculture due to its limited size but would have some appeal as a run-off or for additional grazing land as part of a larger operation for local farmers.” Other rural land sales· D.C. Metcalfe of Singapore has approval to acquire 6.5 hectares at Springbank Road, State Highway 10, Kerikeri, Northland for $520,000 for a “lifestyle property”. Metcalfe “has applied for New Zealand permanent residency under the general skills category” and “intends to reside on the property which contains a substantial dwelling, sheds, two tunnel houses and about four hectares of it is planted in citrus, avocado and tamarillo trees. This property only produces a small return and is not an economically viable business on its own so is viewed as a lifestyle property. The Applicant intends to seek employment in New Zealand as a project manager of IT systems or other business projects utilising the property as his business base.” · W.W. Buss of the U.S.A. has approval to acquire land in Northland, the details of which have been suppressed, as has the price. It is being acquired from Accent Management Ltd and Westmed Projects Ltd of Aotearoa, and Buss, who has applied for permanent residency, “intends to construct a residence on the property and reside there. The property is currently utilised for grazing and is not of sufficient size or nature to allow the establishment of an economic farming unit. The Applicant initially wanted to purchase the foreshore portion of the property. However the vendor was not prepared to sell just that piece and consequently the Applicant has been forced to acquire the whole property. The Applicant may develop the land at a later date into a limited number of lifestyle blocks on which he would undertake landscaping and the construction of dwellings. This would enable the Applicant to establish a buffer for his own property as well as creating a sensitive subdivision which would compliment his own residence.” · R.A. and M.D. Engdahl of the U.S.A. have approval to acquire a lifestyle property of 0.12 hectares at Headland Farmpark, Parua Bay, Whangarei plus a 1/82 share (1.38 hectares) in Headland Farmpark, “which surrounds all the lifestyle lots in the development”, for $570,000. The Engdahls intend to reside on the property. They “desire to take up New Zealand residency and live in New Zealand permanently”. Their “immigration consultant, Malcolm Pacific, has provided a positive assessment of the applicant’s chances of being granted permanent residency status”. · The Ingleby Company Ltd, owned by The Ingleby Trust of the U.K., has approval to acquire the 5,381 hectare Puketoro Station, Ihungia Road, Te Puia, Gisborne for $4,806,255 from Plateau Farms Ltd. “Ingleby propose to operate the property as a sheep, cattle and deer farm. It is also proposed to further develop the forestry activities on the unutilised bush and scrub areas of the property. The company’s main objective in purchasing the property is to upgrade and improve the property to enhance productivity and product quality.” Ingleby’s last purchase was in August 2001, when it gained approval to acquire Waikura Station, Waikura Road, Cape Runaway, Gisborne, made up of 2,843 hectares of freehold land and 275 hectares of leasehold. Ingleby already owned the neighbouring 2,180 hectare Pakira Station, at Te Kumi Road, Hicks Bay, Gisborne, which it bought for $5,460,984 (see the September 2000 decisions). Ingleby also owns a 192 hectare dairy farm at Paekaka Road, Piopio, King Country, acquired in January 2001 for $3,172,500, two blocks of land of 414 hectares and 175 hectares, also at Paekaka Road, acquired in March 2000, and the 3,616 hectare Puketiti Station, also near Piopio, acquired in September 1999. · B.J. and D. Forth of Hong Kong have approval to acquire 8.1 hectares at Tricketts Road, West Melton, Christchurch, Canterbury for $618,750. The Forths “have applied for New Zealand permanent residency under the general skills category”. They “intend to reside on the property which contains a substantial dwelling, a large garden and about six hectares of the property is planted in walnut trees. The property is not of sufficient size nor is it an economically viable business so is viewed as a lifestyle property. The Applicants have demonstrated their commitment to New Zealand by applying for and intending to take up permanent residency. They intend to reside on the property.” · Van Zanten New Zealand Ltd, owned by Van Zanten International Holdings BV of the Netherlands, has approval to acquire 8.6 hectares at Barrhill Methven Road, Rakaia, Canterbury for $556,875. “The Applicant is a flower grower/exporter with extensive operations in Holland. There are also operations in New Zealand, United States and Chile. The purpose of expanding to grow bulbs in the southern hemisphere is that it enables bulbs to be exported to the northern hemisphere during the northern winter therefore allowing year round supply. The Applicant currently owns and leases land at Balclutha for the purpose of processing lily bulbs and growing tulips for export. It is proposed that the property being purchased along with some leased land will be utilised for growing lily bulbs and the construction of a processing and cool store facility for its operations. The Balclutha property will be maintained and expanded for the growing of tulips. The expanded operation will allow the Applicant economies of scale and the applicant can foresee significant opportunities for growth in export volumes. The majority of the Applicant’s revenue comes from exports.” · Three investors have approval to acquire blocks from Closeburn Station on the Glenorchy-Queenstown Road, Queenstown, Otago. The station is owned by J. F. Investments Ltd, which is 70% owned by David Salman of Indonesia and 30% by D. Broomfield of Aotearoa. They are subdividing nine hectares of the station as “lifestyle properties” into 27 residential allotments, each of which will have a share of the remaining approximately 999 hectares which will still be farmed (see our commentary on the July 1998 decisions for details). The land adjoins Lake Wakatipu and conservation land. The present sales are for: · Jefferson Osborn Steele of the U.S.A., acquiring 0.34 hectares plus a 1/27th share of the remaining station (37 hectares), for $668,000; · Garry John Mulcahy of Australia, acquiring 0.31 hectares plus 37 hectares for $750,000; and · C. and Y. Guillot of Hong Kong, acquiring 0.26 hectares plus 37 hectares for $843,750. · D.F. Smith of the U.S.A. has approval to acquire 110 hectares at Glenorchy Paradise Road, Glenorchy, Central Otago for $1,125,000 which he proposes to convert into a “deer unit”. It is part of a “larger sheep and beef farming unit”, which is “neglected and under developed”.
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