September 2004 decisionsUnwelcome Ernslaw One buys forest from bankrupt Huaguang amid chaos Ernslaw One also buys Gisborne sawmill Vero buys insurance, warrantee business from Autosure and Crown Insurance Shania Twain gets her high country stations – 24,700 ha Motatapu and Mt Soho Malaysian investors take 50.25% of Multiplex New Zealand Property Fund … … and Multiplex acquires some of Progressive’s supermarket property Deutsche Asset Management acquires Shortland St, Auckland property German investor buys Albany warehouse development Two more properties for Clearwater development Another purchase near Young Nick’s Head Tipapa homestead in Greta Valley bought by U.K. investor for lodge One application refusedJames Price Olson of the U.S.A. has been refused approval to acquire 7.5 hectares at Dry River Road, Martinborough, Wairarapa for $209,025 from Glen Garth Farm Limited of Aotearoa.
According to the OIC:
The Applicant proposed to acquire the subject property for a viticultural development. The subject property comprises part of a larger block owned by the vendor. It was proposed that 2.5 hectares will be planted in Pinot Noir and 2 hectares in Sauvignon Blanc. The Applicant also proposed to construct a rental cottage.
The Commission is not satisfied that the proposal is in the national interest as the acquisition of the subject property is unlikely to result in substantial and identifiable benefits to New Zealand or to a region, district, locality, or other part of New Zealand. [Decision number 200420027.] Unwelcome Ernslaw One buys forest from bankrupt Huaguang amid chaosErnslaw One Limited, owned by the Tiong Family of Malaysia, has approval to acquire 3,496 hectares of leasehold from Huaguang Forests Co. Limited (In Receivership), owned by Feng Mingchang and Lu Biru of China. The price paid was originally suppressed but released on appeal in December 2004: $51,591,000. The land comprises
· 3,491 hectares of leasehold at Waipaoa Station, Gisborne; and · 4.8 hectares at Kaiti Beach Road, Gisborne Port, Gisborne
In fact some 33,000 hectares are involved – the balance in forest cutting rights.
The OIC states:
The Applicant proposes to acquire certain forestry assets from Huaguang Forests Co. Limited (In Receivership). The assets include three Crown Forestry Licences, five forestry rights, a lease of the Waipaoa forest and other assets.
Huaguang bought the Waipaoa Forest in April 2002 for $147,674,419 from Rayonier New Zealand Ltd, a subsidiary of Rayonier Inc of the U.S.A. The purchase included “three Crown Forestry Licences, four forestry rights, a lease of the Waipaoa forest and other assets”. One forestry right appears to fallen down the side of a sofa somewhere.
According to the OIC at that time, Huaguang “currently does not operate in New Zealand but has been a regular purchaser of logs since December 2000. The main objective behind the proposed purchase is to secure a log supply to meet the market for medium density fibreboard (MDF) in China which is in strong demand and has growth potential. The Applicant operates the Huaguang Decorative Board plant in China, which currently has 3 MDF lines requiring 250,000 cubic metres of logs per line annually. The proposed acquisition provides the Applicant with a secure supply of logs for this plant and other operations, and also provide New Zealand with an assured market for logs.”
We also noted that:
Although the OIC approval was for 3,491 hectares, the Gisborne Herald reports that Huaguang was purchasing 33,000 hectares of East Coast timberland operations from Rayonier – presumably the remaining hectares are in Crown Forestry licences, the sale of which do not require OIC approval. The price Rayonier announced for the full deal was $US63.5 million. “Huaguang is now the single largest owner of forestry in this region, holding 33,000 of the 139,000 hectares of forestry plantations.” Rayonier had already been exporting logs to Korea and China from its East Coast forests, but Huaguang said they would take all the production available. The forests “support about 400 jobs in the East Coast region, both directly and indirectly, with staff including harvest contractors, trucking firms, port operations, silviculture and roading”.
We commented at the time that the proposal was assuring us that we would remain log exporters, with added value processing being carried out elsewhere in the world – and competing with us if we try to export value-added products. In fact it was far worse.
Within two weeks of purchasing the forests in May 2002, Huaguang defaulted on all its payments to its contractors. The New Zealand General Manager then resigned. After six months the entire second tier of management resigned. It appears Huaguang had insufficient capital to maintain the operation, and it appears that dividends were being paid to shareholders ahead of needed operational costs. This was despite the OIC declaring (as it does routinely) that it was
satisfied that the applicant [Huaguang] has significant business experience and acumen relevant to and is demonstrating financial commitment towards the investment.
Huaguang was apparently heavily in debt internationally, and unable to repay some US$482 million to state-owned Chinese banks. The company’s questionable background is outlined at http://www.caijing.com.cn/english/2003/1205/1205huaguang.htm.
Contractors and forestry workers were no happier with the Ernslaw One acquisition. They mounted blockades of the major Mangatu and Ruatoria forests after the new owners announced they would be cutting production and laying off workers. Only seven of the ten crews contracted by Huaguang would be required (Gisborne Herald, “Security guards greet forest protest action”, by Lisa Mills, 8/10/04).
At a peaceful protest prior to the blockades, the Gisborne Herald reports,
Te Runanga o Ngati Porou chairman Api Mahuika said this was another foreign investment in the region that had let people down. The Government and politicians should take more responsibility on the grounds it had been widely publicised since they came to power that unemployment had been substantially reduced, he said.
“It seems to me rather ironic that unemployment, as a consequence of this, would actually escalate rather than decrease.”…
Mr Mahuika said it was sad people were subjected to the principles and policies of foreign investors in their own country.
“Before this we had another foreign investor and the result was a reduction in employment opportunities. This foreign investment is no different to that.” It was important to ensure future investors were New Zealanders so they knew the needs of the people. (Gisborne Herald, “Angry protest pledges a blockade of forests”, by Lisa Mills, 5/10/04.)
Several forestry truck owner operators were put into receivership or had their rigs repossessed.
Again, the OIC in approving Huaguang’s April 2002 acquisition of the forests had said:
The proposal is likely to result in the following benefits: (a) the creation of new employment opportunities; (b) added market competition/productivity;…
While the OIC has suppressed the price paid by Ernslaw One, the Gisborne Herald reports that:
The receivers of Huaguang Forest Ltd have confirmed they sold the region’s East Coast Forestry assets for $47 million which they say does not allow any payments to unsecured creditors who are owed more than $49 million. The assets had a book value of $134 million. Industry sources put their market value at around $60-$70 million at present depressed log prices…
A creditor, who did not wish to be named, said all the Auckland interests had been paid. “The bank has been paid, the receivers have taken their fees but the people of this district have once again been ganked.”
There was a similar response from Tokomaru Bay’s Tairawhiti Forestry Collective, which has about 15 members, six of them owner-drivers. “The latest news will mean a few more trucks will be lost and a few more people will go into bankruptcy,” said spokeswoman Georgina Johnson. “If they don’t pay our owner-drivers, they won’t be able to pay their creditors.” There would be a serious impact for them, their families and ultimately for the entire East Coast.
“We will be losing experienced people from the forestry sector,” she said. After this knock to their business confidence, she doubted they would come back. (Gisborne Herald, “‘Gutted’ creditors hear worst from Huaguang”, by Marianne Spence, 19/11/04).
Ernslaw One, while financially more sound than Huaguang, is hardly more desirable with its Tiong family parentage as we have previously outlined, for example in our commentary on the November 2002 OIC decisions. See also Watchdog 107, December 2004, pp.13-16. [Decision number 200420037.] Ernslaw One also buys Gisborne sawmillErnslaw One Limited, owned by the Tiong Family of Malaysia, also has approval to acquire Prime Sawmills Limited (including 22 hectares at Dunstan Road, Gisborne) for $9,700,000 from Prime Resources Company Limited.
Prime Sawmills Limited owns a sawmill and according to the OIC,
The applicant intends to add significant value to its existing forestry assets by increasing production capacity of the mill, which is located in the same region as some of its forests. The applicant perceives there is an opportunity to use its expertise in lumber processing to expand current mill capacity, thereby adding value to the mill and the additional forests.
The vendor, Prime Resources Company Ltd, gained approval to acquire the sawmill in October 2003, along with two other pieces of land. See our commentary for that month for further details. It had bought a further block of land near Gisborne for forestry in August 2003. In October 2003, it was owned as follows:
· 27.9972% by Dae Beom Chung · 27.2056% by Bong Chae Chung · 16.8% by Dae Young Chung · 16.8% by Hee Seon Chung, and · 11.1972% by An Soon Seo, all of Korea,
However the OIC says it is now owned thus:
· 3.6663% by Dae Beom Chung, · 2.2% by Dae Young Chung, · 2.2% by Hee Seon Chung, · 1.4663% by An Soon Seo, all of South Korea; and · 90.4674% by Bong Chae Chung of Aotearoa. [Decision number 200420040.] Vero buys insurance, warrantee business from Autosure and Crown InsuranceVero Insurance New Zealand Limited of Australia has approval to acquire “certain assets” for $68,000,000 from Autosure Group Holdings Limited and Crown Insurance Corporation Limited of Aotearoa.
The “certain assets” are the motor vehicle and consumer goods warranty and credit insurance business of Autosure, according to Vero’s web site (http://www.vero.co.nz). However, Autosure’s own web site says that “Autosure New Zealand is wholly-owned by Vero Insurance New Zealand Limited” (http://www.autosure.co.nz/about.html). So does Crown Insurance: “Crown Insurance is wholly-owned by Vero Insurance New Zealand Limited” (http://www.crowninsurance.co.nz/about.htm). The OIC does not clarify the matter, stating:
The Applicant proposes to acquire certain assets of Autosure Group Holdings Limited (AGHL) and Crown Insurance Corporation Limited (CICL). These assets comprise business arrangements between the AGHL and CICL and its distributor network, together with its employees and various office equipment, and a runoff arrangement under which the Applicant will manage the vendor’s existing policies. AGHL and CICL offer extended automotive warranty, extended consumer product warranty, payment protection insurance, credit contract insurance, and loan equity insurance products under the Autosure and Crown brands as well as third party branded products which are underwritten by CICL. These products are marketed and sold through an extensive distributor network of motor vehicle dealers, motor vehicle distributors, finance companies and retailers.
The proposal will enable the Applicant to expand its business and achieve a larger market share in some insurance product lines where it is currently under (or not) represented. The Applicant proposes to issue new warranty and insurance products under the Autosure and Crown brands through AGHL’s and CICL’s existing network.
Vero is the former Royal and SunAlliance which had acquired a large part of the insurance sector in Aotearoa. In 2003 it was the second largest general insurer in New Zealand based on a gross revenue. In its own words:
Over the years, the business has grown and diversified through the acquisition of many respected New Zealand insurance names such as: Guardian Royal Exchange; Commercial Union; AMP General; AA Insurance (a joint venture with the New Zealand Automobile Association) and many others.
It is comprised of Vero Insurance New Zealand Limited, Vero Marine Insurance Limited, Vero Liability Insurance Limited, Vero Accident Insurance Limited, AA Insurance, SIS, AXIOM, Mariner Underwriters Ltd and Comprehensive Travel Insurance. It is part of the Australian Promina Group. [Decision number 200420031.] Shania Twain gets her high country stations – 24,700 ha Motatapu and Mt SohoAfter one of the most drawn out and widely publicised cases the OIC has dealt with, Eileen Regina Lange of Switzerland (aka Shania Twain of Canada) and her husband have been given approval to buy two high country stations near Wanaka. Details of the cases can be found in Watchdog 107, December 2004, in an article, “Shania Twain buys up big in Otago”, by Murray Horton (see also the Listener, “Come on over: The Shania Twain deal puts a new face on foreign ownership of our most precious landscapes”, by Bruce Ansley, 9/10/04). Suffice it to say here that the original applications to buy the stations were made in June 2003, 15 months before this decision. After being turned down, they were revived only by making them subject to conditions (noted below) that establish precedents for future applications, and for the revision of the overseas investment legislation in the Overseas Investment Bill, introduced into Parliament in November 2004. Anything but stop the sales. Minister of Finance Michael Cullen was involved in the decision making.
The formal OIC decision goes as follows.
Robert John Lange and Eileen Regina Lange of Switzerland have approval to acquire: · 16,830 hectares of Crown Pastoral Lease situated at Motatapu Station, Wanaka being Pastoral Lease OT386/61 (Otago Registry), Otago for $17,437,500 from DR McKay, SE McKay and RN Macassey of Aotearoa [Decision number 200420034]; and · 7,902 hectares of Crown Pastoral Lease situated at Mt Soho Station, Wanaka being Pastoral Lease OT15B/734 (Otago Registry), Otago for $4,009,500 from RF Monk of Aotearoa [Decision number 200420035].
The OIC states:
The Applicants are proposing to acquire Motatapu Station and the adjoining Mt Soho Station. It is proposed to amalgamate the two properties and farm them as one unit creating synergies by using existing and new stock facilities on Motatapu Station. Both properties are currently operated as fine-wool sheep and beef breeding units. The Applicants have advised that the combined properties currently have an effective farming area of 9,964 hectares (Motatapu Station 6,504 hectares and Mt Soho Station 2,960 hectares).
The Applicants propose to remove cattle and solely farm merino sheep, targeting higher wool weights and higher fine wool quality. It is proposed to implement a farm development programme using sustainable farm management practices and utilising pasture improvements, fencing, and construction of new stock handling facilities to increase, over a period of three years post settlement, the stock carrying capacity and productivity of the properties. The additional stock handling facilities are likely to improve stock management, in particular hogget management, and to provide for additional land for growing winter feed.
The proposal includes the creation of a tramping track that is expected to form part of a nationwide hiking trail network known as Te Araroa plus the provision of huts and associated facilities at a cost of not less than $221,000 to the Applicants. They also propose fencing off and covenanting approximately half of the land (being the land above the snow line) and allowing public access to some of that land.
The Applicants are investigating the development of the properties with regard to ecological, landscape character, historical and vegetation issues. They propose to commission a consultant to prepare a conservation plan for the properties.
The Commission is satisfied that the proposal is in the national interest as the acquisition of the subject property is likely to result in substantial and identifiable benefits to New Zealand or to a region, district, locality, or other part of New Zealand. This proposal is likely to result in the following benefits: (a) The creation of new job opportunities; (b) The introduction of additional investment for development purposes; (c) The creation of a public walking track and ancillary facilities which is likely to form part of the proposed Te Araroa (a series of walking tracks linking Cape Reinga to Bluff); (d) The enhancement of conservation values on the properties and (e) Enhanced public access over the properties. Malaysian investors take 50.25% of Multiplex New Zealand Property Fund …Hyde Park Management Limited and SPB Developments Pty Limited, owned 64% by the Wen Family of Malaysia, and 36% by other shareholders in Malaysia, has approval to acquire up to 50.25% of Multiplex New Zealand Property Fund, for $22,500,000 from existing unit holders in Multiplex New Zealand Property Fund of Australia.
Multiplex has approval to buy the South City Shopping Centre on 3.8 hectares at Colombo, Bath and Durham Streets, Christchurch (see the July 2004 decisions). However the names of the Multiplex subsidiaries are different from the July 2004 decision, which stated that Multiplex South City Landowner Pty Limited as trustee of the Multiplex South City Landowning Trust would own South City.
Instead, the OIC states:
Multiplex Albert Street Landowning Trust (Multiplex Albert Street), which is yet to be established, is to be controlled by the Multiplex New Zealand Property Fund (MNZPF), to be established as an Australian registered managed investment scheme, and part of the Multiplex Group. The Applicant will acquire 50.25% of the units of the MNZPF. Multiplex Albert Street proposes to acquire the property known as the South City Shopping Centre, Christchurch. [Decision number 200420025.] … and Multiplex acquires some of Progressive’s supermarket propertyMultiplex New Zealand Property Fund, now owned 49.75% in Australia, 32.16% by the Wen Family of Malaysia, and 18.09% by other shareholders in Malaysia (see previous decision), has approval to acquire properties on 17.2 hectares comprising: · 13.4 hectares at 80-120 Favona Road, Mangere, Auckland; · 1.5 hectares at 50 The Avenue, Lynfield, Auckland; · 1.2 hectares at Bryce Street and Tristram Street, Hamilton; and · 1.1 hectares at 271 Richmond Road, Grey Lynn, Auckland. for $140,220,000 from General Distributors Limited, a subsidiary of Foodland Associated Limited of Australia.
These are apparently supermarkets and related properties belonging to Progressive Enterprises, Foodland’s local subsidiary, for lease back to it.
The OIC states:
Multiplex New Zealand Property Fund (MNZPF), is to be established as an Australian registered managed investment scheme, and will form part of the Multiplex Group. MNZPF proposes to acquire a property portfolio comprising supermarket properties, distribution centres and offices from the vendor (part of the Progressive Enterprises Limited Group which holds approximately 45% of the New Zealand grocery market and operates the Foodtown, Woolworths and Countdown supermarkets). Upon acquisition, it is proposed that MNZPF will grant a lease (of between 12 to 20 years with rights of renewal) to the vendor who will continue to trade from the premises. This arrangement will release capital for the Progressive Enterprises Limited Group to apply towards its core supermarket business. The proposed acquisition will expand the asset base of the Multiplex Group, reduce portfolio risk and provide diversification benefits to investors. [Decision number 200420026.] Deutsche Asset Management acquires Shortland St, Auckland propertyDeutsche Asset Management (Australia) Limited as manager of Deutsche Office Trust of Australia has approval to acquire “the ‘Office Tower’ located at 76 Shortland Street, Auckland for $110,400,000 from Manson Securities Limited owned by Edward Colin Manson of Aotearoa.
According to the OIC,
The Applicant has entered into an agreement to purchase the yet to be completed “Office Tower” located at 76 Shortland Street, Auckland. Manson Securities Limited (the vendor) has started construction of the “Office Tower” and it is expected that it will be completed in mid 2005 at which stage settlement of the acquisition will occur.
The “Office Tower” will be a premium quality commercial office building with a significant and secure rental income stream. The acquisition of the “Office Tower” will complement the existing property investments of the Deutsche Office Trust. The investment will improve security for unit holders of the Trust in that it will provide geographic diversity of investment.
According to its web site http://www.am.australia.db.com,
Deutsche Asset Management is one of the world’s largest fund managers, managing over A$960 billion (as at 30 September 2004) for clients in over 60 countries. In Australia, Deutsche Asset Management manages $29.6 billion for local clients across all major domestic and international asset classes.
While Deutsche Asset Management Australia is a subsidiary of the huge Germany-based Deutsche Bank, Deutsche Office Trust is part of a listed real estate entity managed by it and other associated companies. [Decision number 200420032.] German investor buys Albany warehouse developmentKershaw Investments Limited, owned by Wilhelm Schuler of Germany, has approval to acquire 0.64 hectares at 6 Canaveral Drive, Albany, Auckland for $5,032,840 from Penbush Holdings Limited, owned by Christopher Ian Stafford-Bush and Julie Elizabeth Stafford-Bush of Aotearoa.
According to the OIC:
The Applicant owns a number of commercial properties in New Zealand and views the acquisition of the property at Canaveral Drive as an opportunity to further diversify its portfolio.
Penbush Holdings Limited (the vendor) is presently constructing a commercial warehouse/office complex on the land. The complex is due to be completed by the end of 2004. The Applicant will acquire the property following completion of the complex. At the time of the acquisition the complex will be the subject of a lease to Camm 4 Limited, an associated company of the vendor. The sale of the property will enable the vendor to realise its investment in the property and provide Camm 4 Limited with access to development capital, being the profit on the sale. This is likely, combined with the enlarged premises available at the complex, to enable Camm 4 Limited to expand its high technology joinery business. Expansion is currently constrained by the current size of Camm 4 Limited’s premises and a lack of access to development capital.
A Wilhelm Schuler is also one of the partners in the Young Nick’s Head forestry development (see below), but we have no record of other properties owned either by him or Kershaw Investments Ltd. [Decision number 200420041.] Two more properties for Clearwater developmentClearwater Property Holdings Limited has approval to acquire two more properties (see our commentary for June 2004, when it was given approval to acquire five other properties): · 126 hectares at Main North Road, Rangiora, Canterbury for $3,037,500 from Hugh Ivor Robinson, Margaret Elizabeth Robinson and Carol Elizabeth Fletcher of Aotearoa [Decision number 200420028]; and · 35 hectares at Coutts Island Road, Belfast, Christchurch, Canterbury for $4,217,625 from Timperley Enterprises Limited, owned by George Ferguson Timperley of Aotearoa [Decision number 200420029].
The purchases follow the acquisition by Trans Tasman Properties Limited of a 55% interest in Clearwater Property Holdings Limited. See our commentary for June 2004 month for further details of this transaction, and Clearwater Property Holdings’ part in the Clearwater development. According to the OIC,
This application represents one of eight subsequent acquisitions that CPHL (or its subsidiaries) propose to acquire near the Clearwater development and Rangiora over which CPHL (or its subsidiaries) have entered into agreements to purchase. It is proposed that these development properties will be used to continue the original Clearwater concept to provide a high class integrated development encompassing residential/accommodation, recreation, open space areas and commercial facilities as part of the Christchurch urban area.
Clearwater Property Holdings’ ownership, following Trans Tasman’s purchase of its 55% shareholding, is recorded by the OIC as follows:
· 33.7205% by SEA Holdings Limited of Hong Kong, · 2.2663% by “Unknown Overseas Persons”, · 22.5% by John Gerald Darby of Aotearoa, · 22.5% by Michael Owen Coburn of Aotearoa, · 19.0132% by other shareholders in Aotearoa.
In fact, this represents · 55% by Trans Tasman Properties Ltd (controlled by SEA Holdings Ltd of Hong Kong), · 22.5% by John Gerald Darby of Aotearoa, · 22.5% by Michael Owen Coburn of Aotearoa. Another purchase near Young Nick’s HeadYoung Nicks Forest Partnership has retrospective approval to acquire 413 hectares at Williams Road, Muriwai, Gisborne for $1,063,125 from John Terence Williams, Helen Frances Williams, Timothy Nolan Williams and Jenny Williams of Aotearoa. It is a forestry development promoted by Roger Dickie (NZ) Ltd of Aotearoa.
The Partnership is owned 36.06% in Germany and 63.94% in Aotearoa. The German owners are as follows: · Wilhelm Schuler 8% · Werner Frick 4.7% · Franz Goerlich 4.3% · C Veithen 4% · Maximilian Steinhauser 4% · P & G Lattermann 4% · Tobias Meuberter 3% · Walter Uebelhoer 2% · Stefan Unger 1.06% · Hans Loeffelmann 1%
The OIC states:
The overseas participants in the Young Nicks Forest Partnership are investing with New Zealand investors in an intensively managed plantation forestry operation.
While New Zealand has the fastest growing plantation forests in the world, there is a limited amount of investment capital available in New Zealand to expand those plantation forests. Roger Dickie (NZ) Limited, the promoter of the Young Nicks Forest Partnership, promoted the partnership widely to New Zealanders by way of the offer of Participatory Securities in the Partnership under a registered prospectus and investment statement dated 17 October 1997. However, in order for the Participatory Securities to be fully subscribed, the participation of overseas investors was necessary.
The forestry operation is managed by Forest Management New Zealand Limited, a New Zealand company which is owned by Roger Dickie, with over 25,000 hectares of forest under its management. [Decision number 200420038.] Tipapa homestead in Greta Valley bought by U.K. investor for lodgeJohn Carr of the U.K. has approval to acquire 201 hectares in three blocks at 40 Motunau Beach Road, Greta Valley, North Canterbury for $3,037,501 from Alistair David Carr Sarah Jane Carr of Aotearoa.
According to the OIC:
The Applicant is the holder of a New Zealand Work Permit valid until 17 February 2006. The Applicant and his wife currently reside in Wanaka where they have established a tourist lodge business named “Arahura”. The Applicant proposes to utilise the subject property which contains a substantial homestead known as “Tipapa” for luxury accommodation and a function centre. This proposed development includes converting the homestead into a tourist lodge, with renovations required to convert the existing facilities into five ensuite bedrooms. In addition the Applicant’s business plan includes the development of two holiday cottages on the property which will also provide conference and function accommodation, the establishment of a small five to six hectare viticultural unit and winery, pheasant shooting, and the improvement of the property’s farming operation. [Decision number 200420036.] Other rural land sales· Ronald Peter Leach and Anne Leach and Cooney Vosper Trustees Limited as trustees for the Holywell Trust of the U.K., have approval to acquire 12.5 hectares at 124 Paparamu Road, Tirau, South Waikato for $716,250 from Pauline Clare Laboyrie and Susan Kathleen Parker as trustees of the Dennen Hof Trust of Aotearoa. The OIC states: “Mr and Mrs Leach, the settlors and trustees of the Applicant, hold New Zealand Long Term Business Visas and have resided in New Zealand since May 2004. They propose to take up New Zealand permanent residency once they are eligible to do so under the Long Term Business Visa scheme. They propose to acquire the subject property which contains a homestead and land which is currently utilised for grazing cattle as a rural lifestyle block. The property will continue to be used for grazing cattle.Mr and Mrs Leach are demonstrating a commitment to New Zealand through intending to take up New Zealand permanent residency.” [Decision number 200420030.] · Sevilo Grove Limited, owned 20% each by Kington Loo, Janet Loo, Wyming Loo, Lyming Loo, Ewa Loo, all of Malaysia, has been given retrospective approval to acquire 44 hectares at Springhill Road, Onga Onga, Hawkes Bay for $168,750 from Springhill Olives Limited owned by K T Ching, W Loo, L Loo, E Loo, E T K Kam, and D T L Kam, all of Malaysia. The OIC states: “The Commission granted consent to Alfa Developments Limited to acquire 88.67 hectares of land located at Onga Onga on 24 November 1999. A subsidiary company, Springhill Olives Limited, completed the purchase. The land has been subdivided into two parcels and 44.317 hectares was transferred to the Applicant in January 2000. Since this date the Applicant has planted the 35 hectares of the property that are plantable as an olive grove.” In our November 1999 commentary we reported: “Alfa Developments Ltd, owned by K.T. Ching, W. Loo, L. Loo, E. Loo, E.T.K. Kam, and D.T.L. Kam all of Malaysia, has approval to acquire 89 hectares of land at Springhill Road, Onga Onga, Hawkes Bay, for $337,500. They propose to establish an olive grove on the property, managed by a ‘consultancy firm’ from Aotearoa. They also propose to construct a factory to press and bottle the olive oil from the orchard.” [Decision number 200420033.] · Eltopia Agriculture Limited, owned 50% by Thomas Edward Philleo of the U.S.A., and 50% by Murray McCallum of Aotearoa, has approval to acquire 22 hectares at 103 Argyll East Road, Waipawa, Central Hawkes Bay for $420,750 from Lolkisale Trust of Aotearoa. The OIC states: “The Applicant proposes to acquire the subject property for the purpose of developing an asparagus crop. The Applicant proposes that the asparagus will be planted intensively using subsurface drip irrigation. The asparagus crop will provide a further supply for Delica Hawke’s Bay Limited, an export asparagus processing company based in Hastings.” Just why it is necessary to have an overseas company to grow asparagus is not made clear. [Decision number 200420039.] · Jia Jianxin of China has approval to acquire 7.8 hectares at corner Tancreds and Raineys Roads, Ladbrooks, Christchurch, Canterbury for $466,875 from Lancewood Farm Holdings Limited of Aotearoa. The OIC states: “The Applicant proposes to establish an agricultural research facility on the property. It is proposed the facility will utilise cultivation techniques developed in China and elsewhere to advance vegetable growing technology and controlled environmental technology in New Zealand. The primary targeted vegetables will be cucumbers, tomatoes and red, green and yellow peppers.” [Decision number 200420020.] · Bryan William Conklin and Cathryn Aileen Thompson-Conklin of the U.S.A. have approval to acquire 20.8 hectares at 86 Manse Road, Evansdale, Dunedin, Otago for $480,000 from Peter John Corkill and Robina Alethea Silva of Aotearoa. According to the OIC: “The Applicants, who are currently residing in New Zealand, have submitted an Expression of Interest to the New Zealand Immigration Service for New Zealand permanent residence under the Skilled Migrant category. They propose to acquire the subject property for use as a permanent residence. It is proposed that part of the property will be grazed and an area will be established in a forestry block. The Applicants are demonstrating a commitment to New Zealand through proposing to apply for and to take up New Zealand permanent residency.” [Decision number 200420021.] Summary statisticsAll investments The value of investment approved in the year to September 2004 is similar to that for the previous September year, both in gross value and net value (i.e. disregarding sales from one overseas investor to another, and discounting part New Zealand ownership of the assets). By far the greatest part of the value of the approvals is for sale from one overseas investor to another.
*In addition there were two retrospective approvals granted during the month. This involved a gross consideration of $1,231,875 and a net investment of $383,363; a gross land area of 457.1 hectares and a net land area of 148.8 hectares.
Investment involving land As noted over the last few months, gross sales of land approved by the OIC during the years to September have increased hugely in area, though net sales have fallen to the point where more is being recorded as being transferred to New Zealand part-owners hands than passed on to new overseas owners. A large proportion of the hectares being bought and sold are between one overseas investor and another. Refusals (above) have risen in number, but are still a small proportion of the total.
* In addition there were two retrospective approvals granted during the month – see note above.
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Compiled by: Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
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