July 2008 decisionsCheung Kong of Hong Kong buys Vector’s Wellington electricity network Rubicon allowed to acquire remainder of Tenon (former Fletcher Forests) Eureka Funds of Australia buys Crowne Plaza Hotel, Christchurch… … and Christchurch Hotels may buy Intercontinental’s share of Premier Hotels Kelly Tarlton’s Underwater World sold to Village Roadshow US company buys Christchurch land for well for water export business ING (NZ) to lease 5 floors of St Laurence House, Quay St, Auckland Kerikeri decision largely suppressed English Vietnam-based banker buys 14,600 ha. Ryton Station at Lake Coleridge Contact Energy buys 35 ha. of Taupo land from Landcorp for cooling water Grandy Lake Forest of Germany buys Hawkes Bay land for forestry Nobilo partnership acquires partner’s 84 ha. to expand Marlborough vineyards US investors approved to swap debt for 49% of Mondillo Vineyards, Otago Australians buy lifestyle property at Lake Hawea
Cheung Kong of Hong Kong buys Vector’s Wellington electricity networkCheung Kong Infrastructure Holdings Limited (CKI) and Hong Kong Electric Holdings Limited (HKE), owned 94.435% in Hong Kong and 5.565% by “Various overseas persons”, has approval to acquire Vector Wellington Electricity Network Limited, Wellington (VWENL) for $785,000,000 from Vector holding company, Vector Metering Data Services Limited, owned 75.1% by the Auckland Energy Consumer Trust, and 24.9% listed on the sharemarket, of which 23.9% is owned in Aotearoa by minority shareholders, and 1% by “Various overseas persons”. Vector Ltd is one of Auckland’s main power and gas retailers.
The OIO states:
VWENL owns the assets that relate to Wellington’s electricity network. The network serves customers in Lower Hutt, Upper Hutt, Porirua and Wellington City.
The assets relating to other services provided by Vector are not included in the transaction for which consent is sought by the Applicants. CKI was named the successful bidder for VWENL in a sales process undertaken by Vector.
The sale was controversial, coming not long after the government had refused approval for the overseas takeover of Auckland International Airport Ltd. There was speculation that the OIO (or the responsible Ministers) might refuse this application on the grounds that it was also a strategic asset. That was ill-informed speculation. The Overseas Investment regulation under which the Auckland International Airport proposal was refused has a critical element: the asset must involve “sensitive land”. That worked for the Airport because, among other aspects, it is on the seabed or foreshore (see our commentary for April 2008 for further details). There is no such sensitive land involved in this case. The odd requirement for a connection to sensitive land is there because it is the only way to get around past governments’ commitments under the General Agreement on Trade in Services under the WTO, and similar provisions in regional and bilateral free trade agreements. The government cannot protect all the assets it may want to: no matter how important the asset, unless there is sensitive land involved, it may not in general prevent the sale to overseas interests.
In addition, while the price obtained was said to be above expectations of around $600 million, and almost twice the Optimal Deprival Value used by the Commerce Commission to judge the fairness of electricity prices, the sale was generally seen as weakening the company (see for example Sunday Star-Times, “Market confused on Vector”, by Jenny Ruth, 4/5/2008, p.D7). On the other hand the high price implies that Cheung Kong may be considering pushing up prices, which may meet resistance from the Commerce Commission.
Cheung Kong is part of the empire of Hong Kong based billionaire Li Ka-shing, who in 2006 attempted to buy a controlling interest in Lyttelton Port Company.
[Decision number 200820007.] Hewlett-Packard buys EDSHewlett-Packard Company, owned in the U.S.A., has approval to acquire Electronic Data Systems Corporation, also of the U.S.A., for $225,597,000.
The OIO states:
On 13 May 2008, Hewlett-Packard Company and Electronic Data Systems Corporation (EDS) announced that they had signed a merger agreement pursuant to which Hewlett-Packard will acquire all of the issued share capital in EDS.
Hewlett-Packard is among the world’s largest technology companies with business groups in core technology areas including Personal Systems, Imaging and Printing and Technology Solutions. EDS is a leading global technology services company delivering business solutions to its clients.
As a result of the acquisition of EDS, Hewlett-Packard will acquire an interest in the New Zealand business and assets of EDS conducted by EDS (New Zealand) Limited (EDS NZ) and its subsidiaries.
The proposed investment is a strategic investment to develop Hewlett-Packard’s capabilities as a services provider particularly in outsourcing services.
EDS is a major force in outsourcing in Aotearoa. On its web site, www.eds.com, it modestly describes itself as “the IT outsourcing market leader in New Zealand” and “New Zealand’s largest IT employer, with more than 2,200 staff throughout the country”. It lists the following operations (see http://www.eds.com/about/locations/newzealand/, accessed 31 December 2008).
Government · Ministry of Social Development: beneficiary payments and debt services · Inland Revenue Department: managing mainframes and part of KiwiSaver delivery · Department of Labour: Managing IT infrastructure, including immigration systems · Land Information New Zealand: managing corporate systems and the IT infrastructure for LandOnline
Private sector · “In 1999, EDS was awarded New Zealand’s largest ever information technology outsourcing contract with Telecom New Zealand to supply most of its IT infrastructure and information system services. This contract has since been extended to 2012.” · Fonterra has an IT infrastructure outsourcing contract with EDS covering 324 offices and 34 countries. · “EDS hosts, supports and enhances many critical banking systems, and processes the vast majority of New Zealand’s cheques and remittances. Banks also use EDS’ document processing service to create and distribute customer financial statements and other communications. Through Interchange and Settlement, EDS manages the clearing and settlement function for the sector ensuring that each day every payment reaches its destination.”
[Decision number 200820001.] Rubicon allowed to acquire remainder of Tenon (former Fletcher Forests)Rubicon Limited, owned 82% in the U.S.A., and 18% in Aotearoa, has approval to acquire the remaining 42.35% of Tenon Limited for a sum “to be advised” from the other shareholders. The remaining shares are owned 29.93% in the U.S.A., 5.23% in the U.K., 2.67% by “other overseas shareholders”, and 62.17% in Aotearoa.
However there appears to have been no action by Rubicon to acquire this shareholding.
The OIO states:
Tenon was formerly called Fletcher Challenge Forests Limited and is a New Zealand company listed on the New Zealand Stock Exchange. It is in the business of processing, marketing and distributing wood products and has assets valued at more than $100 million. In 2004, the Applicant sought and gained consent to acquire shares in Tenon, pursuant to which it has since acquired its current holding of 57.65% in the company.
The Applicant now wishes to be able to acquire the other 42.35% of Tenon that it doesn’t already own, thereby increasing its total holding in Tenon to up to 100% of the company.
See our commentary of May 2004 for further details of Rubicon’s 50%-plus shareholding in Tenon.
This would be like stitching a body together again after an accident. Fletcher Challenge Corporation was broken up in 2000 after many years of building one of New Zealand’s largest diversified companies. It sold off its Energy operations mainly to Shell and US exploration company Apache and its Paper manufacturing division to Norske Skogindustrier of Norway, spun off its Building division as Fletcher Building (the only one to retain the Fletcher name) and its Forestry division as Tenon. It lumped the other bits and pieces together for another share market float, calling it Rubicon, with a supposed technology focus but in fact because of the nature of its birth without any focus. See our commentary for May, October and December 2000 for further details.
It came under the control of Guinness Peat Group and has sold off all its assets except its shareholdings in Tenon and shares in a forestry biotechnology company, ArborGen, also inherited from the former Fletcher empire (ArborGen is now owned one third each by Rubicon, International Paper and MeadWestvaco). In a December 2008 company update, Rubicon stated: “When these two assets are dealt with, RBC will be wound-up” (http://www.rubicon-nz.com/pdf/Rubicon_update_dec_08.pdf, accessed 31 December 2008). Presumably this OIO application is preparation for that.
[Decision number 200820002.] Porsche takes over VolkswagenPorsche Automobil Holding SE, owned 50% in Austria, 22.5% in Germany, 10% in the U.K., 8% in the U.S.A., and 9.5% by “Unknown Overseas Persons”, has approval to acquire Volkswagen AG for $155,400,000 from its other shareholders (Porsche already owned 30.56%), of whom 67% are in Germany and 33% elsewhere around the world.
Presumably the $155.4 million is for the New Zealand assets only. The OIO states that
Volkswagen AG is the holder of 50% of the shares in Global Mobility Holding B.V., which indirectly owns all of the shares in a New Zealand subsidiary LeasePlan New Zealand Limited, a company specialising in car leasing and fleet management.
According to the OIO:
Porsche Automobil Holdings SE (Porsche Automobil) is an international automobile group operating with more than 70 subsidiaries in Europe, North America, Australia and Southeast Asia. Porsche Automobil’s business activities include the development, production and sale of premium sports vehicles, engineering services and financial services.
Porsche Automobil proposes to acquire further securities in Volkswagen AG. Volkswagen AG business activities include automobile manufacturing in Europe, America, Asia and Africa and financing. Porsche Automobil already holds 30.56% of the shares in Volkswagen AG…
Porsche Automobil has traditionally had a close relationship with Volkswagen AG and wishes to further deepen and broaden the existing relationship to create a strong and innovative alliance.
Founder Ferdinand Porsche, who had a good relationship with Hitler, was also founder of Volkswagen AG and the designer of the original Volkswagen beetle (as well as of German tanks used in the Second World War) (see for example http://en.wikipedia.org/wiki/Ferry_Porsche, accessed 31 December 2008).
[Decision number 200820003.] Eureka Funds of Australia buys Crowne Plaza Hotel, Christchurch…Core 3B Holdings (New Zealand) Limited owned in Australia has approval to acquire Victoria Hotels (Christchurch) Limited, including 0.6 hectares of leasehold at 70 Kilmore Street, Christchurch for $61,500,000 from Premier Hotels Christchurch Limited.
It appears that Core 3B Holdings is a front company for “Eureka”: the OIO mystifyingly reports that: “Eureka wishes to purchase the Crowne Plaza Hotel in Christchurch to add to the portfolio of hotels that it controls on behalf of its investors.” It seems probable that this is Eureka Funds Management Ltd, which in 2005 bought nine hotels in Australia and New Zealand from the Intercontinental Hotels Group, while leaving management of the hotels in InterContinental’s hands. The hotels included the InterContinental Wellington (Hotfrog, “Intercontinental Hotels Group Sale of Ten Hotels”, 8/9/2005, www.hotfrog.com.au/Companies/InterContinental-Hotels-Group/FullPressRelease.aspx?id=663). The OIO states that Eureka has “previous investment in the Intercontinental Hotel and Grand Plimmer Complex, both in Wellington”.
The property being purchased is the Crowne Plaza Hotel, which sits astride the blocked off Victoria Street in Christchurch, adjacent to the Christchurch Town Hall and across the Victoria Street, Durham Street and Kilmore Street intersection from the Christchurch Casino, with whose ownership it has been closely associated. The land is apparently leased: according to the OIO, “The Applicant is purchasing all the shares in the New Zealand company that holds a 99-year lease over the land on which the Crowne Plaza is built”.
According to the OIO, Premier Hotels Christchurch Ltd is owned as follows: · 31.25% in the U.K. by InterContinental Hotels Group PLC; · 9.1455% in the U.K. by the Aspinall family; · 9.1023% in the U.K. by the John Aspinall Foundation; · 7.2632% in the U.K. by minority shareholders; · 4.6219% in the U.K. by The Osborne Family Trust; · 6.1637% in Australia by Kerry Packer; · 0.6781% in Australia by James Packer; · 29.94% in Aotearoa by Skyline Enterprises Limited; and · 1.8332% in Aotearoa by Southern Equities Limited.
This is decidedly odd. For a start, Kerry Packer died in 2005. It seems most unlikely that at this point, he has (as is required by the OIO) “business experience and acumen relevant to and is demonstrating financial commitment towards the investment”.
According to official New Zealand Companies Office records (accessed 31/12/2008), Premier Hotels Christchurch Ltd is owned 31.25% by InterContinental Hotels Group (New Zealand) Ltd, which is in turn owned by Hale International Ltd, of the tax haven, the British Virgin Islands. We will take the OIO’s word that Hale is in turn owned by InterContinental Hotels Group PLC. The Companies Office records the other 68.75% as being owned by Christchurch Hotels Ltd. Christchurch Hotels is owned (though see next decision below) exactly one-third each by Auckland Casino owner, Sky City (through Skycity Investments Christchurch Ltd), Christchurch Casinos Ltd, and Skyline Enterprises Ltd along with one of its subsidiaries (Queenstown Tourist Co Ltd). Christchurch Casinos Ltd is owned (in a dog biting its own tail contortionist act) 30.67% by Premier Hotels, 30.67% by Sky City, 30.67% by the same Skyline interests, and 8.0% by Southern Equities Ltd (owned in Invercargill by Crimp family interests). None of which is easy to square with the OIO’s data.
Further, in 2004, the OIO’s predecessor, the Overseas Investment Commission, recorded Sky City Entertainment Group Limited as gaining approval to acquire Aspinall (NZ) Limited for $93,750,000, thus buying out Aspinall’s interest in the Christchurch Casino, whose ownership has been closely associated with the Crowne Plaza Hotel.
[Decision number 200820004.] … and Christchurch Hotels may buy Intercontinental’s share of Premier HotelsChristchurch Hotels Limited has approval to acquire up to 100% of Premier Hotels Christchurch Limited, Canterbury for $28,172,000 from Intercontinental Hotels Group (New Zealand) Limited, owned in the U.K. by InterContinental Hotels Group PLC.
In fact, according to the OIO,
Christchurch Hotels already owns 68.75% of the shares in Premier. Premier holds a 30.67% interest in Christchurch Casinos Limited, which operates the Christchurch Casino whose assets are worth more than $100 million.
Christchurch Hotels now wishes to acquire the other 31.25% of Premier that it does not already own, thereby increasing its total holding in Premier to 100% of the company.
The OIO gives the ownership of Christchurch Hotels as
See the previous item for further information on these shareholdings. If the Companies Office information is up to date, this transaction has not proceeded.
[Decision number 200820016.] Kelly Tarlton’s Underwater World sold to Village RoadshowAuckland Aquarium Limited, owned 81.13% in Australia, 6.77% by “Various overseas persons”, 5.58% in the U.S.A., 3.94% in U.K., and 2.58% in Asia, has approval to acquire 1.2 hectares of leasehold at Tamaki Drive and 244 Orakei Road, Remuera, Auckland for $13,000,000 from Tourism Holdings Limited, owned 22.2% in the U.S.A., 14.7% in Australia, 3.4% in Hong Kong, 1.8% by “Various overseas persons”, and 57.9% in Aotearoa.
In fact the transaction is to purchase Kelly Tarlton’s Antarctic Encounter and Underwater World.
According to the OIO,
The Applicant entered a sale and purchase agreement with Tourism Holdings Limited (Vendor) to acquire the business of Kelly Tarlton’s Antarctic Encounter and Underwater World” (Business). The Vendor’s business assets include various leases over sensitive land for terms greater than 5 years.
The Applicant’s parent entity, Village Roadshow Limited (VRL), views the Business as highly complementary to its existing portfolio of investments and intends to cross-market the Business with its other tourist operations.
Village Roadshow is a major Australian cinema operator. It was part of the New Zealand cinema operator Village Force, a joint venture with Force Corporation Ltd, until the operation was sold to Sky City in March 2001 (see our commentary for that month for further details).
[Decision number 200820013.] US company buys Christchurch land for well for water export businessFiji Water Company LLC, owned by Stewart Resnick and Lynda Resnick of the U.S.A., has approval to acquire 59 hectares at 364 Barnes Road, Taitapu, Christchurch and 264 Ridge Road, Greenpark-Motukaraka, Christchurch for $3,100,000 from Kelsey Emma Williams (34%), Mark Anthony Williams (33%), and 33% Justin Charles de la Roche (33%), all of Aotearoa.
The OIO states:
Since 1996 SpringFresh Limited (SpringFresh) has operated an artesian water bottling business on the Land providing bottled water to the hospitality industry, tourism industry, and the general public. SpringFresh’s water is sold almost exclusively within New Zealand. Very little of its product is exported.
The Applicant has entered sale and purchase agreements for the Land with the Fern Grove Trust (Vendor). Both are conditional on obtaining the Overseas Investment Office’s consent and each agreement is conditional on the other settling.
The Applicant seeks to establish an export business using water bottled from the well on the Land.
[Decision number 200820014.] ING (NZ) to lease 5 floors of St Laurence House, Quay St, AucklandING (NZ) Limited, owned 51% in Netherlands by Ing Groep N.V., 46.8783% in Australia, and 2.1217% in Aotearoa, has approval to acquire an interest in 0.6 hectares of leasehold at 139 Quay Street, Auckland for $2,443,155 from SL Properties (Auckland) Limited, owned in Aotearoa. The land “is or includes the foreshore or seabed”.
The “interest” is “an agreement with SL Properties (Auckland) Limited to lease levels 5-9 of the Building”.
According to the OIO,
The Applicant intends to move into new premises at into St Laurence House at 139 Quay Street, Auckland.
The Applicant wants to move its head office to the Building as it anticipates engaging additional employees in the medium term. The floor area to be leased is significantly larger than that at the Applicant’s current premises.
ING NZ is in fact owned 49% by the ANZ Bank. Both companies have recently been under investigation by the Banking Ombudsman after ING froze two of its managed funds due to the financial crisis, in the process revealing that they were not the low to moderate risk investments that ANZ had been marketing them as to its customers. Some ANZ customers say they were told the managed funds were like term deposits or as safe as banks (Nelson Mail, “ANZ may face liability for advice on ING funds”, 28/3/2008, http://www.nml.co.nz/4455520a6420.html, accessed 31 December 2008).
[Decision number 200820005.] Kerikeri decision largely suppressedAn entity whose name has been suppressed, owned 99% in Australia, 0.23% by “Various overseas persons”, and 0.77% in Aotearoa, has approval to acquire 0.4 hectares at 8 and 12 Butler Road, Kerikeri, Northland for a suppressed amount from William Oswald Haigh (33%), Denise Winnifred Haigh (33%) and Webb Ross Johnson Trustees Limited (34%), all of Aotearoa. The land “adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area by the [OIO]”.
According to the OIO,
The Applicant is seeking to expand its operations across New Zealand.
The land is being acquired to enable the Applicant to implement its business investment plans.
The Applicant seeks to increase its presence in the area.
The “business activity” is “Wholesale and Retail Trade”. Other than that, there are few clues as to what the approval is about. William Haigh is presumably Bill Haigh of Haigh Development Consultants of Kerikeri, and Webb Ross Johnson is a firm of Barristers and Solicitors in Whangarei (e.g. www.kaikohe.co.nz/d_Business.cfm?Scope=Region&WPID=733&dirCatID=PS).
[Decision number 200820010.] English Vietnam-based banker buys 14,600 ha. Ryton Station at Lake ColeridgeRyton Station Limited, owned by John Shrimpton of the U.K., has approval to acquire 449 hectares of freehold and 14,146 hectares of leasehold at Harper Road, Lake Coleridge, Canterbury for $23,500,000 from Ryton Holdings Limited, owned by Phillip Roger Burmester of Aotearoa.
The land · is or includes land held for conservation purposes under the Conservation Act 1987; · adjoins land held for conservation purposes under the Conservation Act 1987; and
The OIO states:
Ryton Station’s current farming operation is relatively small, with the Station carrying only 6,000 merino sheep. Large parts of the property are either unable or incapable of being farmed, due to restrictions under a Land Improvement Agreement registered against titles to the property, or the extreme nature of the terrain. In its current state, the farm is barely an economic unit and farming revenues are poorly diversified and mostly reliant on the sale of wool. The farm supplements its revenues with a small tourist operation.
The Applicant wishes to make a long term investment in an operating farm property in New Zealand. The Applicant’s shareholder wishes ultimately to spend more time in New Zealand, with a view to possibly living permanently in New Zealand.
The Applicant proposes to enhance the Ryton Station’s farm operation through the investment of additional capital and by changing current farming practices. The Applicant also proposes to implement the recommendations contained in an ecological report prepared in relation to the property, including the protection of wetlands and areas of indigenous forest located on the land, through the registration of conservation covenants under the Reserves Act 1977. The Applicant also proposes to discontinue the proposed Ryton Bay subdivision.
Public access will also be provided to the Ryton River, adjoining Department of Conservation lands, Lakes Coleridge, Ida and Catherine.
The OIO states that the approval includes “the protection of existing areas of significant vegetation and significant habitats of indigenous fauna through the registration of conservation covenants; and the creation of mechanisms to secure public walking access over the land.”
According to the Christchurch Press, John Shrimpton is an English merchant banker based in Ho Chi Minh City. He is “co-director of merchant bank Dragon Capital which manages about $3 billion of mainly overseas investment in Vietnam… Shrimpton, 45, is a law graduate and has spent 21 years working in Asian investment and securities, mainly in Vietnam and Hong Kong. He co-founded the Dragon Capital group in 1994 and moved to Ho Chi Minh City in 1996. The group is now the largest asset manager in Vietnam.” It describes the Ryton Bay subdivision mentioned by the OIO (to be discontinued) as “a plan to subdivide 50ha of land next to Lake Coleridge into 232 sections and to develop a 100-site camping ground”.
The Press says that “Ryton Station overlooks Lake Coleridge and is a key tract of land in the Canterbury high country. It partly controls access to the popular Lake Ida and Ryton River.” It reported that Shrimpton also had an application with the OIO to approve his purchase of the neighbouring Glenthorne Station (Press, “Banker buys Ryton Station”, by Martin van Beynen, 26/7/2008, A2).
In a later interview with the Press, Shrimpton refused to discuss his purchase of the stations, describing them as a matter of “personal and private” interest (Press, “Vietnam’s demographics investment opportunity”, by Amanda Morrall, 19/8/2008, p.C4).
[Decision number 200820012.] Contact Energy buys 35 ha. of Taupo land from Landcorp for cooling waterContact Energy Limited, owned 42.9243% in Australia, 6.404% in the U.S.A., 5.4244% by “Various overseas persons”, 3.8772% in the U.K., and 41.37% in Aotearoa, has approval to acquire 35 hectares at “Known as Ohaaki Inundation Land” (sic) near Taupo, Waikato for $308,250 from Landcorp Farming Limited of Aotearoa.
The land is to be used as part of the operation of the Ohaaki geothermal power station. It will be “inundated” with cooling water from the station.
The OIO states:
Ohaaki geothermal power station (Ohaaki) was commissioned in 1989. The Applicant operates Ohaaki pursuant to variety of land rights and extraction rights producing up to 105 mega watts of electricity. The geothermal power generation at Ohaaki produces water as part of the convection mechanism that cools geothermal steam as it is released from the turbine. This water is released onto land adjoining Ohaaki including the Land.
The Applicant has entered a sale and purchase agreement with LandCorp Farming Limited (Vendor) to acquire the Land conditional on obtaining the Overseas Investment Office’s consent. The precise area of the Land will not be known until the planned subdivision occurs. The Applicant intends to lease back to the Vendor parts of the Land at market rental for farming use until such time as the level of inundation on the Land makes farming no longer viable.
The Applicant currently holds several easement rights in respect of the Land such as the right to convey electricity, however these rights do not extend to the right to store water on, or inundate, the Land. The Applicant and the Vendor have agreed to sell the Land to the Applicant subject to the lease-back arrangement noted above, and to the Applicant compensating the Vendor for pockets of land already inundated.
[Decision number 200820011.] Grandy Lake Forest of Germany buys Hawkes Bay land for forestryGrandy Lake Forest (NZ) Limited, owned in Germany by Eberhard Gemmingen (33.34%), Albrecht Gemmingen (33.33%) and Wolf-Eckart Gemmingen (33.33%), has approval to acquire 617 hectares at 766 Cricklewood Road, Wairoa, Hawkes Bay for $2,231,252 from Gillian Gaye Taylor and Guy Michael Wedd (50% each) of Aotearoa. The land adjoins land held for conservation purposes under the Conservation Act 1987.
According to the OIO, “The Applicant has agreed to purchase the land, which is currently a sheep and beef farm. The Applicant is purchasing the freehold interest in the land. Purchasing the land will allow the Applicant to convert almost the entire farm to commercial forest (principally pinus radiata).”
Grandy Lake Forest previously gained approval to buy land in July 2000, September 2001, July 2004 and August 2005. See our commentaries for those months for further details.
[Decision number 200820006.] Nobilo partnership acquires partner’s 84 ha. to expand Marlborough vineyardsSpringfields Partnership, owned 24.9% in the U.S.A. and 75.1% in Aotearoa, has approval to acquire 84 hectares at Rapaura and Wratts Road, Blenheim, Marlborough for $16,314,183 from David Rudd Limited of Aotearoa.
The OIO states:
Springfields Partnership (Springfields) is a partnership between David Rudd Limited (75.1% share) and Nobilo Vintners Limited (Nobilo) (24.9% share). Springfields has completed a vineyard development in Marlborough comprising 44 plantable hectares. The partnership brings together the land held by David Rudd Limited and the vineyard development and viticultural capabilities of Nobilo Vintners Limited.
Nobilo currently has a variety of interests in New Zealand, including land utilised for the growing of grapes, and as wineries and production sites. In total it either owns or leases approximately 790 hectares of vineyards in New Zealand, predominantly in the Hawkes Bay, Marlborough and Auckland regions. Nobilo also sources grapes from contract growers from around 1,400 hectares in area.
Springfields proposes to acquire the land, which is adjacent to other properties currently owned by Springfields and Nobilo, to develop the land as a vineyard. The land contains approximately 77 plantable hectares, which will be planted in Sauvignon Blanc. The proposed development will provide Nobilo with an increased grape supply, which will allow it to continue to develop its export wine markets and enhance the reputation of New Zealand wine overseas. This is likely to result in significant increases in employment, processing of grapes and export levels.
Nobilo, a wholly-owned subsidiary of Constellation New Zealand Limited, carries out a fully integrated viticulture business, which includes the growing and development of grapes, and the manufacture, importation, distribution and sale of red and white wine within New Zealand and, increasingly, for export markets. Nobilo advises that export growth has been constrained by grape supply. Nobilo proposes to secure additional grape supply and increased processing capacity.
[Decision number 200820009.] US investors approved to swap debt for 49% of Mondillo Vineyards, OtagoDavid Hinrichs (40.82%), Denis Burger and Marion McCall (40.82%), and Stephen Cary (18.36%), all of the U.S.A., have approval to acquire up to 49% of Mondillo Vineyards Limited, including 22 hectares at Bendigo Loop Road, to the east of the northern end of Lake Dunstan, 20km north of Cromwell, Central Otago, for $1,064,687 from Mondillo Vineyards Limited, which is owned 33% by Alison Margaret Mondillo, 33% by Domenic Mondillo, and 34% by minority shareholders, all of Aotearoa.
According to the OIO,
Stephen Cary, David Hinrichs, Denis Burger and Marion McCall are all citizens of the United States who wish to convert US$585,950 worth of loans that they have collectively made to Mondillo Vineyards Limited (‘Mondillo’) into shares in the company.
Mondillo is the registered proprietor of the land.
The Applicants are purchasing 49% of the shares in Mondillo (Stephen Cary: 9%; David Hinrichs: 20%; Denis Burger & Marion McCall: 20%).
Purchasing the land will allow the Applicants to consolidate and secure their investment in Mondillo.
[Decision number 200820015.] Australians buy lifestyle property at Lake HaweaRichard & Michele Hemingway of Australia have approval to acquire 7 hectares at 1044 State Highway 6, Lake Hawea, Central Otago for $1,280,000 from John & Colleen Leith of Aotearoa.
The OIO states: “The Applicants are an Australian couple who wish to move to New Zealand with their three sons for lifestyle reasons. Richard Hemingway is an accountant and Michele Hemingway is a naturopath. The Applicant is purchasing the freehold interest in the land and all existing improvements. The land is a lifestyle property. Purchasing it will allow the Applicants to live in New Zealand indefinitely.”
[Decision number 200820008.] Summary statisticsAll investments The value of investment approved in the year to July 2008 was suppressed by the OIO but can be calculated from the statistics of the surrounding months. Both the gross and net (i.e. disregarding sales from one overseas investor to another, and discounting part New Zealand ownership of the assets) value of investment approved in the year to July 2008 is considerably lower than for the previous July year. By far the greatest part of the value of the approvals is for sale from one overseas investor to another.
Investment involving land Gross sales of freehold land approved by the OIO during the years to July have decreased in gross area, but net sales have risen. However sales of leases and other interests in land have risen substantially in both gross and net area. Refusals (above) have fallen in number, but have increased in area and value (due to the Auckland International Airport refusal), though are still a small proportion of the total.
Fishing Quota As usual, there was no fishing quota approved for sale this month.
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Compiled by: Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
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