June 2002 decisionsFonterra consolidates its Australasian “home market” business Nikken Foods buys more land for Oamaru international college of health science Mapua Leisure Park to U.S. ownership Martha Mine owners buy 13 Waihi properties because of mine shaft collapses Juken Nissho buys land to expand its Kaitaia mill Universal Homes of Singapore buys Whangaparaoa land for subdivision Beringer Blass buys Ponder Wine Estates Federated Farmers President sells land to U.S. buyers for deer farming Fonterra consolidates its Australasian “home market” businessAustralasian Food Holdings (Australia) Pty Limited (AFHAPL, formerly New Zealand Milk (Ausapac) Pty Limited), owned 11% by Bonlac Foods Limited of Australia, 7% by Graham St John Spencer-Laitt of Australia, 75% by Fonterra Co-Operative Group Limited (owned by approximately 13,000 dairy farmers in Aotearoa), and 7% by Aorangi Laboratories Limited of Aotearoa, has approval to acquire Australasian Food Holdings Limited (AFHL) for a suppressed amount.
Fonterra was formed by the amalgamation of the two main dairy cooperatives, New Zealand Co-operative Dairy Co Limited and Kiwi Co-Operative Dairies Limited, and the New Zealand Dairy Board in October 2001.
Bonlac Foods is 25% owned by Fonterra, and is a major milk supplier – a former dairy cooperative – in Australia. Fonterra and Bonlac have a 50/50 joint venture called Bonland Dairies, which will be absorbed into AFHAPL. AFHAPL was previously New Zealand Milk’s marketing arm in Australia, selling Fonterra’s branded consumer goods.
Graham St John Spencer-Laitt owns his interest through a company, Calpa Pty Ltd. Both he and Aorangi were 9% shareholders in AFHL and have a “put option” with Fonterra whereby they can require Fonterra to acquire part or all of their shareholdings in AFHAPL (Fonterra Financial Statement 2002, p.67). The other 82% of AFHL was held by Fonterra.
Though apparently just a rearrangement of Fonterra’s holdings, it is actually more than that. Fonterra announced the development in a media statement headlined “Fonterra and Bonlac Create Major Australasian Dairy Products Group” (1/7/02 – see http://fonterra.com/news/news_ms104.htm). It stated:
Fonterra Co-operative Group Limited and Melbourne-based Bonlac Foods Limited have agreed to merge their consumer food products operations in Australia and New Zealand.
The merger creates a strong and broadly-based Australasian manufacturer and marketer with successful brands in dairy and associated food categories and annual sales of more than NZ$2.3 billion (A$2.0 billion). It brings together the Mainland and Tip Top businesses in New Zealand with the Bonland Dairies and Peters and Brownes businesses in Australia, under the name of Australasian Food Holdings (Australia) Pty Ltd, employing approximately 4,000 people.
The merged group will market leading brands such as Mainland, Tip Top Ice Cream, Meadowfresh, Tararua, Galaxy, Ferndale, Huttons, Kiwi, Bega, Bodalla, Perfect Italiano, Western Star, Cadbury Ice Cream and Brownes, in Australia, New Zealand and Oceania. Its brand portfolio will cover milk, ice cream, cheese, butter, yoghurt, processed meats and convenience foods.
Fonterra Chief Executive Officer of Fonterra, Craig Norgate, said the merger was “a strong platform for future growth in Australasia” which he described as “our home market”. AFHAPL’s management would “initially remain in their current locations on both sides of the Tasman”.
Norgate told NZPA (Press, 2/7/02, “Fonterra expands Aust food business”, p.C1) that he expected the new company would save $10-20 million a year by restructuring its operations. He described it as “consolidating our assets in Australia” and was non-committal on floating the company on the stock exchange. Fonterra also has an 18% stake in the major Australian dairy company, National Foods.
In Aotearoa, its main domestic dairy product competitor – spun off as a condition of its privileged position in the New Zealand market – is New Zealand Dairy Foods, now owned by New Zealand’s richest man, Graeme Hart. It has an initial 10 year agreement on the supply and price of milk from Fonterra. Fonterra cannot charge it any more than it charges other buyers, including its own subsidiaries. New Zealand Dairy Foods has 45% of the national milk market, including about 60% of the yoghurt, dairy foods and butter markets, 34% of block cheese, and 49% of specialty cheeses. It owns the Anchor, Fresh’n Fruity, Swiss Maid, Country Goodness, Fernleaf, Cloverlea, and Chesdale brands. The group initially had no processing capacity of its own, but opened a new plant in Christchurch in early 2002 (Press, 11/9/02, “Dairy Foods offering capital notes”, p.B9).
All of which will make New Zealand dairy farmers wonder how long they – or even New Zealanders – will keep control of the downstream, added-value, sectors of their industry.
The acquisition includes: 613 hectares of freehold land: · 12.6 hectares at Avalon Drive, Te Rapa, Auckland; · 143 hectares at Marshall Road, Pokeno and Ngatea, Waikato; · 31 hectares at Frost Road, Tuakau, Waikato; · 5.1 hectares at 78 Prestige Road, Mt Maunganui, Bay of Plenty; · 5.6 hectares at Reserve Road, Longburn, Manawatu; and · 416 hectares at Mitchells Road, Burnham, Canterbury and Sharlands Road, Ellesmere County, Canterbury; plus 34 hectares of leasehold land at Reserve Road, Longburn, Manawatu.
Presumably because of the amount of land involved, the OIC applied a “national interest” test to the application. Such a test is not required for most applications – those that do not involve land or fishing quota. Even when some land is involved, the OIC has not applied a national interest test previously, so it is not clear why it has done so in this case. The OIC concluded that:
The acquisition by NZMA of the shares in AFHL is in the national interest. This is because the consolidation of Fonterra’s Australasian consumer businesses will allow for greater efficiency and productivity for the group as a whole. It will assist in reducing duplication and other such inefficiencies. As Fonterra is owned by in excess of 13,000 New Zealand dairy farmer shareholders, any improvements in the efficiency and productivity of Fonterra’s businesses are likely to provide returns for those shareholders and improve one of New Zealand’s primary export industries.”
It may seem strange that an OIC approval was required when the overseas ownership of the company remains at less than the statutory threshold of 25%. The reason is that AFHAPL is incorporated overseas, and thus under the Overseas Investment Regulations automatically is regarded as an “overseas company”. Nikken Foods buys more land for Oamaru international college of health scienceNikken Foods Co Ltd, owned 74% by Hirotomo Ochi of Japan and 26% in minority holdings in Japan, has approval to acquire two further blocks of land in Teschemakers Road, Teschemakers, Oamaru, Otago for its “international college of health science” and a “hybrid town”:
· 23 hectares for $135,000 from the NZ Dominican Sisters Trust Board of Aotearoa; and · 13 hectares for $168,750 from KT Fodie of Aotearoa.
The two properties are adjacent to a 30 hectare property bought by Nikken in May 2000 to establish an “international college of health science”.
The OIC states:
Part of the college’s function is the running of practical courses on organic farming, aimed at educating youth, who will be trained in protecting the environment and developing healthy lifestyles. The Applicant also plans to develop a hybrid town on the property, which will be similar to a town that he developed at Fukuroia City, Japan. The town at Teschmakers will be developed around the school over the next few years. It is envisaged that the town will provide support facilities, including accommodation, etc., for those employed and attending the college.
The Applicant is also undertaking developments on the farm as part of the college, utilising the crop, stock, dairy and vegetables to establish an organic farm network. The Applicant seeks to acquire adjoining farm land as an adjunct to the college to further progress their work in organic farming for research and development of health products.
For further details, see our commentary on the May 2000 decision (since when, Dr Ochi’s interest in Nikken Foods has increased from 67.63% to 74%). Mapua Leisure Park to U.S. ownershipGT Martin and EL Ress of the U.S.A. have approval to acquire 12.3 hectares at 33 Toru Street, Mapua, Nelson for $4,000,000 from Mapua Leisure Park Limited of Aotearoa. In fact, they are buying the Mapua Leisure Park business:
The Applicants propose to acquire the business known as the Mapua Leisure Park located approximately 30 kilometres from Nelson. The business includes a camping and tourist accommodation business offering camping sites, cabins, chalets, and tourist motels. It also provides associated services and recreational activities for guests such as a restaurant, lounge, television room, swimming pool, spa pool, sauna, tennis court and kayak hire.
The operation is in a good location but currently has limited facilities and is in need of considerable maintenance. The Applicants proposed development includes modernising existing facilities, undertaking remedial maintenance and increasing and changing the marketing focus to attract a wider customer base therefore expanding the operation of the facilities so that the shoulder and winter seasons may be fully utilised. The vendor currently has resource consent to further expand the number of accommodation units located on the property and the Applicants intend to undertake an expansion of the current facilities.
Locals are concerned that the park’s new owners may cut off their access to the foreshore and that prices to use the park will rise steeply. Martha Mine owners buy 13 Waihi properties because of mine shaft collapsesWaihi Gold Company Nominees Ltd, owned 96.4228% by the Newmont Mining Corporation of the U.S.A., and 1.7886% each by minority shareholders in Australia and Aotearoa, has approval to acquire 13 properties in Waihi, Coromandel.
The rationale for the purchases is given as follows:
In December 2001, a substantial ground subsidence occurred at Barry Road in Waihi which resulted in the destruction of two properties and placed another eleven properties at risk. The subsidence is associated with historic mine workings undertaken by companies no longer existing. An agreement has been reached between the Applicant, the Hauraki District Council and the Earthquake Commission to enable compensation and/or relocation for the affected property owners. As part of this agreement the affected properties will be transferred to the Applicant after the Crown (through the Earthquake Commission) did not wish to obtain ownership.
The proposed acquisition of the properties will be beneficial in adding a buffer between the Applicant’s mine and other surrounding residential areas, after removal or demolition of houses and securing the area.
In fact, many more properties were affected by subsidences. Sixty-four properties including 21 houses and a number of businesses will have to be vacated, the Hauraki District Council has said. A further 19 may have to be vacated if further investigations show they are unsafe. Another 91 are in a low risk zone. See our commentary on the May 2002 decisions for details, and for an explanation of the changing ownership of the company.
The company is paying $388,637 for the 13 properties (the individual cost of each property is not given). This seems very cheap compared to the most recent purchases by the company to form a buffer around the mine: in October 2000 it bought 0.0889 hectares at 16 Newman Street for $160,000, and 1.26 hectares at 12A Slevin Street for $618,750; and in March 2001, 0.0831 hectares at 23 Grey Street, Waihi, for $122,500. Presumably in effect the Earthquake Commission has subsidised the acquisitions.
(Tourism Coromandel map with our annotation)
The properties are as follows:
Juken Nissho buys land to expand its Kaitaia millJuken Nissho Limited, owned 85% by Juken Sangyo Company Limited and 15% by Nissho Iwai Corporation, both of Japan, has approval to acquire two blocks of land at State Highway 1, Kaitaia, Northland: · 0.088 hectares for $69,000 from MBA Feisst of Aotearoa; and · 0.2251 hectares for $67,000 from PS Fraser of Aotearoa.
The land adjoins Juken Nissho’s veneer mill and saw mill, and the people selling the properties have “signified their desire to relocate from the property for this reason”. By purchasing the property, Juken Nissho will “avoid having a third party being affected” by its operations. In both cases, “the property will be used to house expatriate and other staff employed at the mill”.
In March 2000, Juken Nissho received OIC approval to acquire 148 hectares of land for $1,856,250 at North Road, Kaitaia. This adjoined its manufacturing operation and was to be used to build a veneer mill and solid wood mill. “The greater part of the land will be leased back to the vendor to continue operating a dairy herd.” In June 2000, Juken Nissho gained approval to acquire a further three hectare block of land to add to add to the 148 hectares, at Hillcrest Road, for $380,000. It was forced to buy this block: “Due to various resource management consent issues relating to the proposed development of the processing facilities, it has become necessary to acquire the property the subject of this application.”
In the current decision, the OIC reports that: “The Applicant has since constructed a veneer mill and a saw mill on the site which is now operating at full capacity which is earlier than expected. As a result of the facility operating at full capacity, the Applicant is proceeding with further expansion of the processing facilities to increase the capacity of the operation.” It does not appear to be popular with the neighbours. Universal Homes of Singapore buys Whangaparaoa land for subdivisionUniversal Homes Limited, owned 76.1% in Singapore and 23.9% by China Merchant Holdings International Limited of China, has approval to acquire 15.9 hectares at 219-305 Whangaparaoa Road, Whangaparaoa, Auckland for $1,950,000 from PA Sclater, J Schultz and HM Tilghman of Aotearoa.
Universal Homes
is a predominant player in the Auckland housing market selling house and land packages primarily to the mid-income market. Its principal activity is the development of blocks of land in the Auckland region for the construction and disposal of residential house and section packages aimed at the mid range of the housing market. The Applicant is continually searching for land for residential development to meet the demands of the population. The Whangaparaoa area is a rapidly growing area with a high housing demand, and Universal Homes has a substantial association with the area, having developed extensive areas of land in that region.
The Applicant proposes to develop the subject land which is currently vacant and becoming overgrown as a low density residential development site with the necessary associated infrastructure and then market the units to the public. It is proposed that an area of approximately 6 hectares will be set aside as a reserve. The development will commence in the first half of 2003 and is expected to take approximately 6 months.
Universal’s last purchase was in February 2002, when it received approval to acquire 2.0 hectares at 64 Tapu Road, Huapai, Auckland for $1,181,250. Land for forestry· Orere Holdings Limited/Anna Van Eeden-Casey Joint Venture, owned 50% by A R and B M Rule of the U.S.A. and 50% by Anna Chartlott Van Eeden-Casey of Aotearoa, has approval to acquire 504 hectares at 295 Kawakawa Bay Coast Road, Orere Point, South Auckland, for $4,100,000 from Anna Chartlott Van Eeden-Casey. “Orere Holdings Limited wishes to exercise an existing option to purchase an undivided one-half share in a property at Orere Point from the present proprietor Anna Charlott Van Eeden-Casey. The intention of the Company and its ultimate controlling shareholders is to establish and develop a significant forestry plantation comprising a 50:50 mix of sequoia sempervirens (California Coastal Redwoods) and radiata pine on approximately 200 hectares of the property. Sequoia sempervirens have to date only been planted in very limited pilot plantation quantities for commercial purposes in New Zealand. The proposal is likely to result in a more productive use of the property through the establishment of the forestry operation on the steeper and hilly areas, which are marginal for agricultural purposes. It is proposed that the 186 hectares of native bush on the property will be retained while the balance will be utilised for sheep and cattle farming under a lease arrangement with a local farmer. The Applicant also intends to make improvements to the farming aspects of the property which have been historically run down. These improvements include upgrading existing fencing, repairing and replacing existing irrigation systems and the regeneration of pasture quality through the increased fertilisation of the property.” · Three groups of investors from Taiwan have approval to acquire land at State Highway 22, Te Akau Road, near Ngaruawahia, Waikato from the New Zealand Forestry Group Limited, which is owned 76% by Wesley Garratt of Aotearoa and 24% by J Hong of Taiwan. They 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”. They are: · The Lin Chi Hung Family Trust, 14 hectares for $90,240; · Yi-Chun Liu and Chien-Chung Chang, 16 hectares for $102,400; and · Wen-Hao Yu, 25 hectares, for $160,640. These sales are like many in this and other regions organised by New Zealand Forestry Group, the last such sales being in May 2002, 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. · Buzawa Limited Liability Partnership, which is owned 35% each by CG Buzawa and ES Buzawa, and 15% each by AD Buzawa and LS Buzawa, all of the U.S.A., has approval to acquire 314 hectares at Cricklewood Road, Wairoa, Gisborne for $1,057,500 from Willow Grove No 1 Ltd, Willow Grove No 2 Ltd, and Willow Grove No 3 Ltd, all of Aotearoa. The property “is fully planted in radiata pine trees established in 1996”. It is another project in which the foreign investor provides the capital and a New Zealand company the expertise and management of the investment. The management of the forest will be contracted to a New Zealand forestry management company, Roger Dickie New Zealand Limited. “The property has been offered on the open market for much of 2001. The vendors state that they are unwilling to invest any further capital into the forest. Accordingly, if this proposal does not proceed no pruning or other silvicultural work will be undertaken resulting in the forest being severely downgraded in value.” · JPS II, owned by the Soper and Wheeler Families of the U.S.A., has approval to acquire 416 hectares at Okota Farm, Agnews Road, Hunterville, Manawatu for $775,000 from DA and FE Hammond and FR Thomas of Aotearoa. JPS II “is part of a group that has been part of the California forest management scene since early in the 20th century. It currently manages 40,000 hectares in California. The group’s principal activity is the harvesting and management of trees for sale in the forest products industry… A feature of its investment strategy is the intention to invest in a range of species other than radiata pine, having had a long experience with a diverse range of commercial species in California including Douglas Fir, Californian Redwood, Ponderosa Pine, Incense Cedar and White Fir. The Applicant claims that these species grow well in New Zealand and command values many times higher than equivalent grades of radiata pine. The Applicant intends to develop a commercial forest planted on the 385 plantable hectares of the property with an area of approximately 54 hectares in radiata pine and the balance in redwood.” JPSII and associated companies is a significant land purchaser, the last acquisition being in February 2002 when JPS gained approval for 2,082 hectares at Waihi Gorge, Geraldine, South Canterbury for $1,629,000. In August 2001, it bought 1,278 ha. in Hokonui, Southland, declaring this was the start of an acquisition programme. In December 2001, the OIC approved it buying 1,189 hectares at 2066 Switzers Road, Clutha District, Otago for $3,150,000 and in January 2002, it received approval to purchase 4,146 hectares at Conway Hills, State Highway 1, RD, Parnassus, North Canterbury for $905,000. See our commentary on those months for further details. · GMO Glenburn Limited, owned by GMO Renewable Resources LLC of the U.S.A., has approval to acquire 630 hectares at Craigie Lea Road, Masterton for $1,864,125 from RWM Van Bergen, AHM Bunnen-Van Bergen, EFM Van Bergen and JWM Van Bergen of Netherlands. “The Applicant is an investment group involved in international investment opportunities in forestry and related business. The Applicant is looking for opportunities to expand its forestry related investments in New Zealand particularly in the Hawkes Bay and Wairarapa regions. The Applicant has existing forestry investments in New Zealand, one of which is a joint venture for only a single rotation. Harvesting is now proceeding in this forest and the Applicant proposes to reinvest these funds in its other forestry investments and the subject property. The subject property contains a plantable area of 486.5 hectares and was planted in radiata pine forestry by the vendors in 1999. The vendor wishes to dispose of this property and concentrate their forestry interests on an adjoining forest owned by them. The applicant proposes to undertake an additional pruning lift than the vendor proposed. This is likely to result in an increased volume of clearwood being available for harvesting.”
In May 2001, GMO Glenburn received approval to acquire 196 hectares of land at Glenross Road, Waiwhare district, Hastings, Hawkes Bay for $618,750. It had previously bought land in March 1999, when a joint venture between GMO Renewable Resources LLC and Rayonier Inc, also of the U.S.A., gained approval to acquire 5,537 hectares of forestry right at Te Awahohonu Forest, approximately 70 km north west of Napier, Hawkes Bay. GMO Renewable Resources bought the historic 5,899 hectare Glenburn Station in Wairarapa in May 1998, amid considerable controversy. GMO is a subsidiary of Grantham, Mayo, Van Otterloo and Co., LLC, which was a major shareholder in Trans Tasman Properties Ltd.
The Van Bergen family received approval to purchase the 634 hectare property – the Dunolly Station – in December 1998 for $1,012,000. They said then that they intended to convert the property into a forestry operation. In July 1997, we reported that Mr Johannes Christian Van Bergen of the Netherlands had approval to acquire the neighbouring 1,831 hectare Craigie Lea Station for $1,300,000, for afforestation with the help of New Zealand consultants. Beringer Blass buys Ponder Wine EstatesBeringer Blass Wine Estates Limited, a subsidiary of Fosters Brewing Group Ltd of Australia, has approval to acquire Ponder Estate Wines Limited and Ponder Partnership of Aotearoa for $11,100,000. The purchase includes 41 hectares at New Renwick Road, Blenheim, Marlborough.
According to the OIC,
The Beringer Blass/Matua Valley Group is one of the top six New Zealand wine producers and is involved in all aspects of the winemaking process, from grape growing to wine making and distribution (both domestically and internationally). Its grape growing interests are located in Kumeu, Gisborne, Hawkes Bay and Marlborough and are owned by the Beringer Blass/Matua Valley Group or through contracted growers. The Beringer Blass/Matua Valley Group has invested heavily in its infrastructure and is well positioned with its distribution and export capabilities. The Beringer Blass/Matua Valley Group’s wine making facilities are located at the Waimauku Winery, near Auckland and in Marlborough.
The Beringer Blass/Matua Valley Group proposes to acquire the business of Ponder Estate which is a producer of premium wines and olive oil and has regularly attained gold medal status and international acclaim for its wine and olive oil. Ponder Estate also has a unique cellar door presence in Marlborough with its combination of wine, olive oil, and the proprietor’s artwork on offer. It is the most visited cellar door facility in the Marlborough region for a non-restaurant winery. The property currently has 23.1 hectares planted in Sauvignon Blanc, Chardonnay, Riesling, and Pinot Noir grapes and an area of 11.3 hectares planted in olives.
The proposed acquisition will assist the Beringer Blass/Matua Valley Group to increase their supply of grapes and develop greater sustainable production volumes in particular to meet the demand for premium New Zealand wine. In particular the acquisition will increase the Beringer Blass/Matua Valley Group’s grape supply to meet the projected demand for wine in the United States and the United Kingdom markets, and increase its own self sufficiency in Marlborough grapes.
Matua Valley Wines, which is 51% owned by Beringer Blass, last bought land – again in Marlborough – in March 2002. Beringer Blass bought its controlling stake in Matua Valley in April 2001. See our commentaries for those months for further details. Other land for wine· Evill Lawson Partnership, owned 75% by T J and P Evill of Singapore and 25% by R and B Lawson of Aotearoa, has approval to acquire 7.1 hectares at 304 Alabama Road, Blenheim, Marlborough, for $579,375 from MA and R Honour of Aotearoa. The property is “currently utilised for grazing”. The partnership proposes to “plant the land in Sauvignon Blanc grapevines. The vineyard will be developed concurrently with the Partnership’s existing vineyard properties in Marlborough… Approximately seven hectares of the subject property is to be planted. The grapes from the vineyard, which adjoins the Applicant’s existing Lawson’s Dry Hills winery, will be processed at the winery.” In February 2002, T J and P Evill gained OIC approval to acquire 4.2 hectares at Hoddys Road, Richmond, Nelson for $932,618. For further details of that acquisition and of the Evills’ and the Evill Lawson Partnership’s previous purchases, see our commentary on that decision. · Limestone Creek Vineyards Limited, owned by P Thomas of Aotearoa, has approval to acquire 12.4 hectares at 139 Mackenzies Road, Waipara, Canterbury for $750,000 from Greystone Vineyard Limited of Aotearoa. The property “currently has 6.5 hectares developed as a vineyard, with two hectares planted in Pinot Noir, one hectare of Chardonnay and 0.75 hectares of Riesling grape varietals. The remaining area of the property is undeveloped. The Applicant proposes to expand the existing vineyard area by extending the trellising for a further hectare and planting the undeveloped portion of the property. It is proposed to plant a further four hectares in Pinot Noir, one hectare of Riesling and 0.75 in Pinot Gris. In addition the current Chardonnay vines will be replaced by Pinot Noir.” It is not clear from the OIC’s decision why the sale required approval from the Commission. The New Zealand Companies Office records that Limestone Creek Vineyards Ltd was first registered in May 2002, with Julie Millar of Christchurch holding all the shares, and having two directors, Bruce George Thomas of Christchurch, and Peter Thomas of Hong Kong. However the OIC (on CAFCA’s questioning the situation) reports that the reason the approval was required was that “Limestone Creek Vineyards Limited is 100 percent owned by Sun Genesis Limited, a company registered outside of New Zealand, which, in turn is owned by Mr Peter Thomas”. It appears that the New Zealand Companies Office records are not up to date. Federated Farmers President sells land to U.S. buyers for deer farmingMG and SL Varner of the U.S.A. have approval to acquire 65 hectares at Parr Road, Pleasant Point, South Canterbury for $360,000 from J and TC Lambie of Aotearoa.
The Varners have being accumulating land for deer farming since 1999. In December 1999 the Varners were given approval to acquire the 195 hectare Rockpool farm at Raincliff for $1,293,750 “to establish a deer and elk farming operation”. In April 2002, they received approval to acquire an adjoining 13 hectares at Mount Gay Road, Raincliff, South Canterbury for $52,801. The new property adjoins these properties.
The Applicants intend to continue their existing operation of a red deer farm, producing venison and velvet and the breeding of elk deer to provide trophy quality animals for the international trophy shooting market. A hunting lodge is to be established on their existing property to target the outdoor tourism market and tourists primarily from the USA.
Initially the property will be utilised for beef fattening and progressively the subject property will provide additional land required to raise numerous trophy head stags. As the stags get older they need to be kept apart and have their own small herd of does. The acquisition will result in the ability to breed a greater number of trophy head stags.
One of vendors, TC Lambie, is Tom Lambie, President of Federated Farmers, who farms “Spencerfield”, a 308 hectare certified organic dairy farm in Totara Valley, Pleasant Point, milking 650 dairy cows (see http://www.fedfarm.org.nz/public/press2002/PR84-02.htm). J Lambie is presumably James Lambie who also farms in Totara Valley. Other rural land sales· PN and DE Pomfret of the U.K. have approval to acquire 8.0 hectares at Ironbark Road, Kerikeri, Northland for $695,000 from KC Limited of Aotearoa. The Pomfrets “have applied for a Long Term Business Visa and intend to reside permanently in New Zealand”. They intend to live on the “lifestyle property”, which has “a substantial dwelling. The property is not utilised for any economic purpose. The Applicants who have experience in the tourism industry propose to operate an accommodation lodge”. · HL Ware II of the U.S.A. has approval to acquire 2.1 hectares at 176 Potts Road, Whitford, South Auckland for $1,700,000 from M & SD Heimgartner and PJ Horrocks of Aotearoa. “The Applicant is to apply for New Zealand permanent residency under the Investor category and proposes to acquire a lifestyle property situated at Whitford. The Applicant intends to reside on the property which has a substantial dwelling on it. The property is currently a lifestyle property.” · Bayview Developments Limited, owned by M Crivelli of Japan, has approval to acquire 7.5 hectares at 191 Gow Road, Whakatane, Bay of Plenty for $880,000 from W and J Rechsteiner of Aotearoa. Bayview “currently operates a 22.1064 hectare property near the subject property. This existing property has approximately 3 hectares planted in kiwifruit with the remainder a deer breeding operation and smaller interests such as pine tress and nut trees. The subject property currently has approximately 3.6 hectares planted in kiwifruit. The Applicant intends to increase production from the property by planting a further 1 hectare and upgrade the existing orchard from a T-Bar style to Pergola style. The proposed acquisition will allow for shared machinery and provide economies of scale with both properties being run in conjunction with each other.” · Strader Enterprises Limited, owned by LW Strader of the U.S.A., has approval to acquire 4.9 hectares at Te Rua Bay, Tory Channel, Marlborough Sounds, for $225,000 from NL Wadey and JA Milton of Aotearoa. The property is currently used as a “lifestyle property”. It contains “a two bedroom house and approximately one acre in garden with the balance of the property being steep and regenerating native bush. The property has no road access and is only accessible by boat.” Although the OIC lists the use of the property as “Lifestyle”, it says that Strader “proposes to add the property to its New Zealand investment portfolio of tourism venture resources. The applicant has recently acquired two luxury apartments in Picton, a backpackers lodge, a diving equipment rental business and a yacht for chartering. The overall concept is that the yacht chartering and dive businesses are to be complemented by a range of accommodation facilities including the apartments and a homestay option on the subject property. The Applicant’s shareholder LW Strader is currently applying for a Long Term Business Visa and intends to relocate to New Zealand once this is issued and reside permanently.” · CL Martin of Hong Kong has approval to acquire 15 hectares of freehold situated at Ashworth’s Bush Road, Balcairn, Canterbury for $222,000 from Sherwood Farm Limited of Aotearoa. Martin “is applying for New Zealand permanent residency under the General Skills category and proposes to acquire a lifestyle property situated at Balcairn, Canterbury. The Applicant intends to construct a substantial residence on the property and reside there. The property is part of a subdivision of a larger 40 hectare block of land that the vendor has found to be uneconomic to farm. The property is currently used for casual grazing by an adjoining farmer. The applicant intends to continue to lease part of the property to the farmer for grazing.” · SK Kim and MR New of the U.S.A. have approval to acquire 6.5 hectares at Wanaka-Mt Aspiring Road, Wanaka, Otago for $1,600,000 from MB and PA Johnston of Aotearoa. “The Applicants who are currently applying for New Zealand permanent residency under the General Skills category intend to reside permanently on the property. They propose to operate an online education consulting service and a database consulting service from the property. In addition it is proposed to establish a bed and breakfast operation aimed particularly at the American market.”
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