September 2006 decisionsMaruha of Japan gets approval to acquire 5,000 tonnes of fishing quota Rank Group buys out other shareholders in Burns Philp Macquarie acquires lease in Manukau for commercial development BNZ buys 80 Queen St including historic building for Multiplex to develop AMP buys 50% interest in Bayfair Shopping Centre, Mt Maunganui Neil Construction buys land for more subdivision … … and CDL Land buys Christchurch land for subdivision Retrospective approval for takeover of remaining 49% of Thames Timber Ltd… … reorganisation of ownership of Thames Timber Investments Limited
Maruha of Japan gets approval to acquire 5,000 tonnes of fishing quotaIn a rare occurrence, an overseas company has received approval to acquire fishing quota. The last approval for sale of fishing quota was in January 2001 and extremely controversial. See our commentary for that month for further details.
Maruha (NZ) Corporation Limited, owned 100% in Japan by Maruha Group Inc, has approval to acquire Individual Transferable Quota (ITQ) generating an annual catch entitlement (ACE) of up to 5,000 tonnes in various species for a price “to be advised”.
Maruha has apparently yet to purchase the ITQ: it is getting permission in advance in order to buy quota over the next three years to make up for Hoki quota lost because “the Total Allowable Commercial Catch (TACC) for Hoki has progressively been reduced”. The OIO appears to be assuming that it will buy the ITQ from another overseas investor.
The OIO states:
The Applicant (Maruha NZ) carries on commercial fishing in New Zealand’s Exclusive Economic Zone from a chartered fishing vessel, the “Aleksey Slobodchikov”. Part of the annual quota requirements for this vessel is being met from Hoki quota held by its wholly owned subsidiary, Ceebay Holdings Limited (Ceebay), with the remainder from target and by-catch quota leased from third parties, pursuant to permissions granted under section 57 of the Fisheries Act 1996.
The Total Allowable Commercial Catch (TACC) for Hoki has progressively been reduced. Maruha NZ’s fishing operations have therefore become increasingly dependent on leasing in quota in other target species, particularly Jack Mackerel. Maruha NZ wishes to acquire a core quota holding of other target species to provide the operational certainty necessary to continue to fish on its own account.
Maruha NZ has been granted permission to acquire up to 5,000 tonnes of ITQ of other species. This is approximately equivalent to the level of the core Hoki tonnage that was available from Ceebay in 2000. The permission permits Maruha NZ to acquire ITQ over a 3 year period from 28 September 2006 generating an ACE of up to 3,000 tonnes of Jack Mackerel, 2,000 tonnes of Southern Blue Whiting, 2,000 tonnes of Squid (SQU1T and SQU6T), and 2,000 tonnes of other target and by-catch species (excluding Hoki) provided that the total held at any time does not generate an ACE of more than 5,000 tonnes.
Maruha is a controversial company, and the way it and Ceebay acquired quota in 2000 was also highly controversial. For details see our commentary on the September 2000 decision.
[Decision number 200620052.] Rank Group buys out other shareholders in Burns PhilpRank Group Australia Pty Limited, owned 100% in Aotearoa by Graeme Richard Hart, has approval to acquire up to 100% of Burns, Philp and Company Limited for $1,538,267,022 from shareholders in Burns Philp other than Rank Group. These remaining shares are 89.13% owned in Australia, 0.56% by “various overseas persons” and 10.31% in Aotearoa.
According to the OIO,
Rank Group Australia Pty Limited, a wholly-owned subsidiary of Rank Group Limited, proposes to acquire all of the shares in Burns, Philp & Company Limited (Burns Philp) which are not already held by Rank Group Limited and its subsidiaries. Burns Philp’s New Zealand investments include its wholly-owned subsidiary Bluebird Foods Limited and a 20% shareholding in Goodman Fielder Limited. Rank Group Limited’s rationale for the investment is that Burns Philp having recently divested a number of its investments it is timely to consolidate the interests of Rank Group Limited and Burns Philp into one privately owned group structure.”
It is not clear why this required OIO approval. Rank Group is 100% owned by wealthy New Zealander Graeme Hart but presumably required approval because the subsidiary making the takeover is Australian registered.
[Decision number 200620047.] Macquarie acquires lease in Manukau for commercial developmentMacquarie Goodman Nominee (NZ) Limited and Macquarie Goodman Nominee (NZ) No 2 Limited as nominee of the Macquarie Goodman Property Trust and Macquarie Goodman Group, owned 54.555% in Australia by minority shareholders, 5.5% in Australia by Macquarie Bank Limited, 34.87% in Aotearoa by minority shareholders, and 5.075% in Aotearoa by Goodman Holdings, has approval to acquire 1.4 hectares of leasehold at 60 Westney Road, Manukau, Auckland for a suppressed amount from Workstore Developments Limited, owned 50% by Richard Balcombe-Langridge, Glenda Eveleen Balcombe-Langridge and Andrew Balcombe-Langridge as trustees of the Chiswick Trust, 25% by Christopher Verissimo as trustee of the Christopher Verissimo Trust, and 25% by Terrence John Scott as trustee of the Terrence John Scott Trust, all of Aotearoa. The land includes or adjoins “a reserve, a public park, for recreation purposes, or a private open space”.
The OIO states:
The Applicant has received consent to enter into options to lease all of or part of a 34 hectare property located at 60 Westney Road, Manukau, Auckland. The Applicant proposes to enter into a ground lease of the subject property (which forms part of the 34 hectare property) from Workstore Developments Limited (Workstore) for an initial term of 20 years. The ground lease will be perpetually renewable.
Consents were given in November 2004 and May 2006 when earlier developments of the property, for Linfox Logistics and for DTC Holdings Limited and Daniel Silva Limited, were approved. See our commentaries for those months for further details.
The OIO continues:
The Applicant proposes to undertake a commercial property development on the subject land which will be sub-leased to Supply Chain Solutions (NZ) Limited to be utilised for warehouse and distribution facilities. The entry into a sub-lease will facilitate the proposed development to be undertaken by the Applicant.
[Decision number 200620050.] BNZ buys 80 Queen St including historic building for Multiplex to developThe Bank of New Zealand, owned in Australia by National Australia Bank Limited, has approval to acquire 1.4 hectares of leasehold at 80 Queen Street, 9 Fort Street and 16 Shortland Street, Auckland for $93,558,468 from Multiplex 80 Queen Street Limited, of Australia. The land is or includes “a historic place, historic area, wahi tapu, or wahi tapu area”. It is to be sold to Multiplex which will build a new building on it and lease part of it back to BNZ.
The OIO states:
The Bank of New Zealand (BNZ) and Multiplex Developments (NZ) Limited (Multiplex) have entered into an agreement whereby BNZ Properties (Auckland) Limited, a wholly owned subsidiary of BNZ which currently owns the subject land, will sell the land to Multiplex 80 Queen Street Limited (MPX80), a wholly owned subsidiary of Multiplex.
The agreement includes arrangements where MPX80 is to demolish one of the existing buildings, and part of the other (which is subject to a Memorandum of Understanding with the Historic Places Trust), design and build a new building on the land, and lease the lower office levels and key ground floor retail area, car parks and ancillary facilities back to the BNZ. The proposal will provide the BNZ with new head office premises.
The proposal is likely to facilitate the development proposed by Multiplex (refer A200420119/D200510003).
The earlier OIC approval referred to here (the numbers are the Application and final Decision numbers given by the OIC) was suppressed almost in full, giving no clue as to the parties involved.
The New Zealand Herald describes the development as follows: “A controversial plan to redevelop the site will see only part of the historic adjoining Jean Batten State Building retained but bring new national headquarters for the bank.” It includes “demolishing the existing building fronting Queen St and part of the art deco Jean Batten building.” (New Zealand Herald, “NZers buy back Queen St”, by Anne Gibson, 23/10/06, http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10407117; “BNZ gets permission to sell Auckland site”, by Anne Gibson, 8/11/06, http://www.nzherald.co.nz/category/story.cfm?c_id=28&objectid=10409619.) Though the Herald described the OIO’s decision as giving permission to BNZ to sell to Multiplex, in fact it is for BNZ to acquire the lease. There is no approval for Multiplex to buy it. The situation is unclear.
According to a media release by BNZ and Multiplex,
Bank of New Zealand has committed to occupy over 60% of a new premium commercial office tower owned, developed and being built by Multiplex Group at 80 Queen Street, Auckland. The $180 million facility will comprise 23,000 square metres of premium grade accommodation over 19 levels, including a Bank of New Zealand branch and other retail at street level and basement car parking. Construction of the project is due for completion in September 2009. Bank of New Zealand has committed to an initial term of 15 years with rights of renewals allowing an extension of a further 19 years. The building, for which it has naming rights, will be the Bank’s new head office. (“Bank of New Zealand commits to premium office tower at 80 Queen St, Auckland”, 7/9/06, https://www.bnz.co.nz/binaries/mr070906.pdf.)
[Decision number 200620051.] AMP buys 50% interest in Bayfair Shopping Centre, Mt MaunganuiAMP Capital Investors Limited “as responsible entity for the” AMP Shopping Centre Fund, owned in Australia, has approval to acquire a 50% interest in the Bayfair Shopping Centre, Mt Maunganui, Tauranga, Bay of Plenty for $121,500,000 from Tower Property Nominees Limited as trustee for the Tower Property Fund, owned in Aotearoa. The OIO states: “The AMP Shopping Centre Fund (ASCF) has entered into a competitive tender process in relation to acquiring a 50% interest in the Bayfair Shopping Centre and adjoining development/expansion properties situated at Mount Maunganui, Tauranga from Tower Property Nominees Limited. The proposed acquisition will be ASCF’s first New Zealand acquisition providing ASCF an opportunity to geographically diversify its property portfolio.” [Decision number 200620039.] Neil Construction buys land for more subdivision …Neil Construction Limited, owned 100% in Malaysia by Tiong Family, and which “carries on business principally in Auckland, Tauranga and Christchurch acquiring land for subdivision, development and resale” has approval to acquire:
· 4.1 hectares at 10 Robinia Place, Snells Beach, Auckland for $5,650,000 from The Salvation Army New Zealand Trust of Aotearoa. The land is or includes “land subject to a heritage order, or a requirement for a heritage order” and includes or adjoins “a reserve, a public park, or other sensitive area”. According to the OIO, “the land is zoned Future Urban under the Rodney District Council’s Proposed District Plan and adjoins 5.443 hectares of land previously acquired by the Applicant for a 65 lot residential subdivision. The Applicant proposes to undertake a residential subdivision development which will provide approximately 48 residential lots to assist in meeting the demand for residential lots in the Rodney district. The development will be undertaken in one stage commencing in October 2007.” In July 2002, Neil Construction received OIC approval to buy 5.4 hectares at 159 Mahurangi East Road, Snells Beach, Auckland for $3,948,750. See our commentary for that month for further details. [Decision number 200620040.] · 2.3 hectares at 108 Simpson Road, Henderson, Auckland for $2,137,500 from John Murray and Margaret Becroft of Aotearoa. The OIO states: “The Applicant proposes to acquire the subject land to add it to the company’s portfolio of land for residential subdivision. The land is a lifestyle property that was previously used for horticultural purposes which ceased as they were uneconomic. The land adjoins 1.506 hectares of land that the Applicant has previously received consent to acquire for the purposes of a 15 lot residential subdivision. The Applicant proposes that the acquisition of the subject land will provide a further 28 residential lots. The development of the subject land is likely to be undertaken in one stage commencing in October 2007.” The company last received approval to acquire land in November 2005, which is the previous consent referred to in Henderson. See our commentary for that month for further details. [Decision number 200620048.] · 24 hectares at 423 Omokoroa Road, Omokoroa, Tauranga, Bay of Plenty for $12,375,000 from David Hugh Vincent Goldstone and Nancy Doreen Goldstone of Aotearoa. The land is or includes the foreshore or seabed and adjoins the foreshore. The OIO states: “The Applicant proposes to acquire the subject land to add it to the company’s portfolio of land for residential subdivision. The land is zoned Rural H under the Western Bay of Plenty’s District Council’s District Plan and has been identified in the Regional Policy Statement in the proposed Omokoroa Stage 2 Structure Plan Area as a growth area for the region. The land is currently used for grazing beef stock and is not considered an economic unit. The Applicant proposes to undertake a residential subdivision development which will provide approximately 160 residential lots to assist in meeting the demand for residential lots in the Tauranga district. The development will be undertaken in three stages commencing in October 2009.” Neil Construction last received approval to purchase land in Tauranga in December 2004. See our commentary for that month for further details. [Decision number 200620049]. … and CDL Land buys Christchurch land for subdivisionCDL Land New Zealand Limited, owned 22.0833% in Singapore by the Hong Leong Group, 20.133% by minority shareholders in Singapore, and 57.7837% by minority shareholders in Aotearoa, has approval to acquire to blocks of land in Prestons Road, Christchurch, Canterbury:
· 14 hectares at 432 Prestons Road for $5,231,250 from Laurence Raymond Trott and Christine Dulcie Trott of Aotearoa [Decision number 200620044]; and · 11 hectares at 414 Prestons Road for $4,000,000 from Mark Edward Lanyon and Emma Catherine Lanyon and Charles James Murdoch as trustees of the Lanyon Family Trust of Aotearoa [Decision number 200620045].
Both blocks of land include or adjoin “a reserve, a public park, or other sensitive area”.
According to the OIO,
The Applicant’s core business is the acquisition of land for residential subdivision and development. The proposed acquisition will further strengthen and grow the Applicant’s land bank and development portfolio.
Regarding the first approval, it states:
The subject property which is currently used by the vendors for grazing cattle and cropping is situated near land undergoing residential development. It is proposed that the land will be subdivided into 145 residential sections to be made available for sale to the open market. The subdivision development is likely to commence in 2010/2011.
And as to the second:
The subject property is currently used by the vendors for market gardening in conjunction with a larger land holding owned by the vendors. In recent years the level of market gardening undertaken on the subject land has been reduced and the vendors are relocating the market gardening business to the larger land holding. The vendors estimate that production from the subject land has reduced by 40% over the past five years and that market gardening on the subject land has become economically marginal due to the small size of the land, and the proximity of residential land. The Applicant proposes to subdivide the land into 119 residential sections to be made available for sale to the open market. The subdivision development is likely to commence in 2010/2011. Retrospective approval for takeover of remaining 49% of Thames Timber Ltd…In a retrospective approval, probably sparked by the application reported next, Thames Timber Investments Limited, owned in the U.S.A. by the Hagen Family, has approval to acquire up to 100% of Thames Timber Limited, including 62 hectares of freehold situated at Kopu and Totara, State Highway 25, Thames, and 1.6 hectares of leasehold at Kopu, State Highway 25, Thames, Coromandel for $3,000,000 from Thames Group Limited of Aotearoa.
According to the OIO,
Thames Timber Investments Limited has agreed to purchase the remaining 49% of the shares in Thames Timber Limited. Thames Timber Limited owns and operates a sawmill and timber processing plant situated at Thames. The proposed acquisition by the Applicant is likely to assist Thames Timber Limited to enhance its ability to increase production and export sales.
The transactions are likely to result in maintaining the status quo of the number of companies in the timber processing industry. The increased investment by the Hagen family will ensure the economic viability of its wholly owned subsidiary Thames Timber Limited.
[Decision number 200620042.] … reorganisation of ownership of Thames Timber Investments LimitedSouthern Cross Forest Products Limited, owned 94% in the U.S.A. by the Hagen Family, and 3% each by C G T Whitefield, and M J McKenzie, both of Aotearoa, has approval to acquire up to 100% of Thames Timber Investments Limited, including 62 hectares of freehold at Kopu and Totara, State Highway 25, Thames, Coromandel, and 1.6 hectares of leasehold at Kopu, State Highway 25, Thames, Coromandel for $4,803,150 from Shearwater Corporation Inc., owned in the U.S.A. by the Hagen Family.
The OIO states:
SCFP proposes to acquire 100% of the shares in TTIL from Shearwater, a closely associated company which is ultimately 100% owned by the Hagan family. The only asset of TTIL is a 100% shareholding in Thames Timber Limited, which operates the sawmill and timber processing plant situated in Thames. The proposed sale of TTIL by Shearwater to SCFP represents part of a reorganisation of the group of companies controlled by the Hagen Family. The transaction is likely to result in maintaining the status quo of the number of companies in the timber processing industry. The increased investment by the Hagen family will ensure the economic viability of its wholly owned subsidiary Thames Timber Limited.
[Decision number 200620041.] Land for forestry· SMLK Limited, owned 50% each by Lukas Krattiger and Sylvia Marcionelli-Bucher, both of Switzerland, has approval to acquire 52 hectares at Waitawhiti Road, Tiraumea, Wairarapa for $339,584 from DSM Land Limited of Aotearoa. According to the OIO, “The Applicant proposes to acquire a forestry block growing pinus radiata which is part of a larger forestry block comprising 1,226 hectares being subdivided by the vendor. The land was planted in pinus radiata in 2005. The vendor will continue to manage the block under a management agreement and the Applicant will provide capital to fund the on-going development of the forestry block. In essence the proposal is a joint venture between the Applicant (who is providing capital for development purposes) and the vendor which is a New Zealand company (which has been engaged by the Applicant to provide the expertise necessary to manage the operation). To date 518 hectares have been planted and this proposed sale will provide capital to the vendor to further develop the forest on the remaining land.” DSM Land last made a similar sale which was approved in January 2006, again to Swiss nationals. See our commentary for that month for further details and previous sales by DSM Land. [Decision number 200620037.] Land for wine· Stephen Mark Smith and Napier Independent Trustees Limited as trustees of the Sarah Lauren Trust, both of Australia, have approval to acquire 29 hectares at 103 Waimarama Road, Havelock North, Hawkes Bay for $2,981,250 from Helen Mary de Leeuw of Aotearoa. According to the OIO, “The Applicant proposes to acquire the subject land for the purposes of producing wine and augmenting and extending the wine producing activities of Craggy Range Vineyards Limited (Craggy Range) of which the settlor of the Applicant is a beneficial owner and director. The Applicant owns 12.0262 hectares of land adjoining the subject land which has been developed as a vineyard. The subject land is situated a short distance from Craggy Range’s Waimarama Road vineyard. The acquisition of the subject land will increase the planted area of the vineyard by 2.9 hectares and provide improved practical access to the Applicant’s existing property upon which the settlor of the Applicant has developed a vineyard and is proposing to construct a residence.” [Decision number 200620038.] Other rural land sales· Catharina Maria Elisabeth Koomen and Guy Aladar Holmes of the Netherlands have approval to acquire 80 hectares at 150 Makara Road, Makara, Wellington for $721,125 from Wayne Douglas McEwen and Annette Joy McEwen of Aotearoa. According to the OIO, “The Applicants propose to acquire the subject land to construct a home for their permanent residence. Ms Koomen holds a Work to Residence Talent Permit granted by the New Zealand Immigration Service under the Employer Accreditation programme. The land contains approximately 40 hectares established in pinus radiata forestry with the remainder of the land covered in scrub/gorse. The Applicants propose to clear part of the scrub/gorse to provide grazing land. The Applicants are demonstrating a commitment to New Zealand through applying for and taking up New Zealand permanent residency.” The land includes or adjoins “a reserve, a public park, or other sensitive area”. [Decision number 200620046.] · Nigel Martin Hart and Helen June Hart of the U.K. have approval to acquire 8 hectares at 191 Bells Road, Blenheim, Marlborough for $1,181,250 from Terence John Wooster and Christine Elizabeth Wooster of Aotearoa. According to the OIO, “The Applicants have resided in New Zealand since June 2006 with the intention to reside indefinitely in New Zealand. The Applicants, who have been granted New Zealand Long Term Business Visas, propose to acquire the subject property as a residence and a base for their business. The Applicants are demonstrating a commitment to New Zealand through applying for and taking up New Zealand permanent residency.” [Decision number 200620043.] Summary statisticsAll investments The value of investment approved in the year to September 2006 is slightly lower than for the previous September year, but the net value (i.e. disregarding sales from one overseas investor to another, and discounting part New Zealand ownership of the assets) is about a quarter higher. By far the greatest part of the value of the approvals is for sale from one overseas investor to another.
The total sales approved in September (both gross and net) have been suppressed because of the suppressed consideration in one approval, but the difference between the August and this month’s year-to-date totals indicates that approximately $1,785,790,467 of investment was approved in September, and negative $1,233,306,122 net. There may have been adjustments to the total for the earlier approvals in 2006 which make these values an approximation. The negative net value is largely because of the Rank Group’s takeover of the remaining shares in Burns Philp. Rank Group is owned by wealthy New Zealander Graeme Hart but presumably required approval because the subsidiary making the takeover is Australian registered. The deal was valued at $1,538,267,022 and reduced overseas ownership in Burns Philp’s shares other than the 57.59% owned by Rank from 89.69% to zero, contributing negative $1,379,671,692 to the net figure. The other transactions this month offset that, with a net increase in overseas ownership.
*In addition there was one retrospective approval granted during the month. This involved a gross consideration of $3,000,000 (and 2 hectares of land) and a net investment of $3,000,000 (and 1 hectare of land).
Investment involving land Both gross and net sales of land approved by the OIO during the years to September have fallen in area. Refusals (above) have risen in number, area and value, but are still a tiny proportion of the total. There were none this month.
*In addition there was one retrospective approval granted during the month. This involved a gross land area of 2 hectares (and $3,000,000) and a net land area of 1 hectare (and $3,000,000).
Fishing Quota For the first time in several years, fishing quota was approved for sale to an overseas interest. Quota for 5,000 tonnes was approved for sale from one overseas investor to another.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Compiled by: Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
