Foreign investment in Aotearoa/New Zealand
Overseas Investment Office – July 2009 Decisions
The Japanese Like Steinlager
A busy month at the OIO. Firstly Kirin Holdings Company, Limited Japan (79.1%), United States of America (11.1%), United Kingdom (4.7%), Various (1.5%), Australia (0.9%), Luxembourg (0.7%), Ireland (0.5%), France (0.5%), Belgium (0.4%), Switzerland (0.3%), Netherlands (0.2%), Germany (0.1%) has been given approval to acquire 53.9% of the shares of Lion Nathan Limited including sensitive land, namely: a leasehold interest in 20 hectares of land at Omaka Aerodrome, Marlborough; and a freehold interest in 443.75 hectares of land at Ben Morven Road, New Renwick Road, St Leonards Road, and Rarangi, Marlborough; and a freehold interest in 16.7 hectares of land at 55 Ormiston Road, East Tamaki; and a leasehold interest in 5.25 hectares of land at 11 Springs Road, East Tamaki.
The vendors were existing shareholders in Lion Nathan Limited other than Kirin Holdings Company, Limited Australia (43%), Various (22.3%), United States of America (18%), United Kingdom (7.8%), Singapore (4%), Hong Kong (2.6%), Japan (2.3%). Consideration was stated as $4.5 billion. The OIO states: “The Applicant will acquire (either directly or indirectly or through a wholly owned Australian subsidiary) the remaining 53.87% of the shares in Lion Nathan which it does not currently own. The proposed acquisition of the remaining shares in Lion Nathan represents an excellent opportunity for the Applicant to consolidate its already significant presence and investment in Australia and New Zealand, will enable integration of other breweries owned by the Applicant, fits with the Applicant’s strategy to be a market leader in the food and beverage markets in Oceania and is consistent with the Applicant’s overall strategy to rapidly grow its businesses within the Australasia region”.
Lion Nathan is New Zealand’s largest brewer with iconic brands including Speights, Steinlager, Lion Red and Macs. It is Australia’s second biggest brewer with brands including XXXX, Tooheys, Boag’s and Beck’s. Kirin also owns Australian food, juice and dairy products group National Foods. See our detailed April 1998 commentary on Kirin’s original acquisition of a 45% stake in Lion Nathan. In particular “the takeover was myered in controversy. Chairman Douglas Myers took full advantage of the country’s Wild West takeover rules – those which were advocated by the Business Roundtable which he headed for many years. The Kirin offer was a limited one. It bought Myer’s 15.6% holding at 540 cents and offered the same price for only a further 29.4% of the company’s shares. Australian investors – whose rules would have forced an offer to all shareholders – were angry. The Australian Financial Review’s columnist, Chanticleer, headlined the offer as a “real shocker”, saying Myers and his fellow directors had pocketed most of the takeover premium and left many of the institutional shareholders high and dry. Its Business Editor, Giles Parkinson, writing in the New Zealand Herald, quoted an unnamed Australian fund manager as saying: “Morally, what they did was a disgrace” (quoted in the Press, 5/5/98, “NZ takeover rules upset Australians”, p37). Or, as the New Zealand Herald put it (16/5/98, pE2): “We will have the lager, you can have the bitter”. Competing offers were reportedly rejected at the time. Although the former Overseas Investment Commission (OIC) gave approval for 51% of shares to be sold, in fact 45% was sold, with an assurance from Kirin that it would not increase its holding without Lion’s approval”.
Kirin is the largest brewer in Japan and the fourth largest brewer in the world. As we said in 1998, while it does not have much to offer in improving standards of brewing, it does have experience to offer in establishing new lows in business ethics. According to the Japan Times Online (24/10/97) it was one of “at least” three Mitsubishi companies tied to “sokaiya” payoffs in 1997. Sokaiya are racketeers, often gangster-linked, who extort money from corporations by threatening to expose dubious business practices and disrupt shareholders’ meetings. Japanese law prevents corporations paying out to ensure corporate solidarity. Japan Times reported that the companies were “suspected of sending funds to a bank account linked to two ‘sokaiya’ corporate extortionists arrested earlier this week over illegal payoffs from Mitsubishi Motors Corp., police sources said”. The extortionists were named as Terubo Tei, also known as Teiji Nakamoto, and Kaoru Hamada. The other two firms named were Mitsubishi Electric Corporation, and Mitsubishi Estate Co. Each was suspected of sending up to several million yen into the account, and investigators were trying to determine whether the payments by Mitsubishi Electric and Mitsubishi Estate amount to illegal payoffs, which are banned under the Commercial Code.
“Kirin Brewery stopped such cash transfers in 1993, when executives of the firm were arrested in connection with payoffs to other racketeers, according to the sources. The three year statute of limitations under the Commercial Code has expired on those payments by Kirin”. Even more worrying is that Kirin is heavily involved in genetic engineering. For example: “Researchers at Kirin Brewery (Japan) report in the May 1997 issue of Nature Biotechnology that they have successfully coaxed genetically engineered yeast cells to produce the sweet protein monellin at levels exceeding the yields of monellin from serendipity berries, the West African plant (Dioscoreophyllum cumminisii) from which the protein is naturally extracted”.
Kirin increased its stake in Lion Nathan in November 1999 via Lion’s buyback of shares in itself. See our September 2000 and February 2001 commentary concerning Kirin’s (via Lion Nathan) foray into and battle for our largest winemaker Montana. It eventually lost that battle to Allied Domecq PLC of the UK. Kirin (via Lion Nathan) has also been active in buying other vineyards across the country. See our commentaries in August and September 2002, June and November 2003 and May 2005 for details on these.
Decision # 200910103
Aussies Forget To Get OIO Approval Re NZ Rental Group
Retrospective approval has been granted to Next Capital (Services A) Pty Limited as Trustee for the Next Capital Fund 1A and Next Capital (Services B) Pty Limited as Trustee for the Next Capital Fund 1B Australia (100%) for the acquisition of rights or interests in 1.8% of the shares of New Zealand Rental Group Ltd, the value of the assets of New Zealand Rental Group Ltd and its 25% or more subsidiaries being greater than $100m. The vendors were existing shareholders in New Zealand Rental Group Ltd other than Next Capital Australia (52.5%), New Zealand (47.5%). The asset value was stated as $217 million. The OIO states:
“The Applicants are Australian unit trusts, managed by Next Capital Pty Limited. This is a retrospective application. An issue of securities to the Applicants and other investors in New Zealand Rental Group (NZRG) Limited in June 2008 caused the relative aggregate ownership interest of the Applicants in the securities of NZRG to increase from 54.83% to 56.58%. At the time, it was not appreciated that consent was required for this transaction. On 26 February 2009, the Applicants also obtained consent to giving effect to a transaction or series of transactions which will result in the Applicants’ acquisition of rights or interests of up to 100% of the securities of NZRG”. See July 2006 and February 2009 decisions for Next Capital’s original entry into New Zealand’s hire and rental car industries. Next Capital is already a major player in the New Zealand health food market, having acquired health food and supplements manufacturers Healtheries in October 2006 and Nutra-Life in December 2006, and consolidated this in March 2009.
Decision # 200910081
International Commodity Trader Buys ABB Grain
Viterra Inc. Canada (50.3%), United States of America (43.5%), Various (6.2%) has received approval for the acquisition of rights or interests in 100% of the shares of ABB Grain Limited, the value of the assets of ABB Grain Limited and its 25% or more subsidiaries being greater than $100m. The vendors were existing shareholders of ABB Grain Limited Australia (74.5%), United States of America (14.1%), Various (6.3%), United Kingdom (5.2%). Asset value stated was $128 million. The OIO states:
“The combination of Viterra and ABB Grain will create a leading global position in the origination of wheat, barely, canola and pulses. The combined company will be the leading marketer of these products to key markets in Asia, Europe and the Middle East. The increased scale and strong balance sheet is expected to provide additional stability to earnings and lower the group’s risk profile, while positioning the combined group to capitalise on potential future growth opportunities”.
Viterra is an international soft-commodity trading transnational based in Calgary, Canada, and was formed from the merger of the Saskatchewan Wheat Pool and Agricore United. However it appears the due diligence conducted on ABB was a little tardy. As reported by the Australian Financial Review (8/1/10), Viterra discovered that ABB was in breach of some of its loan covenants with its lenders. Viterra managed to obtain a waiver for the breach but some “management changes” were made after the takeover was completed. ABB here in New Zealand owns well known rural serving companies, PCL Feeds and NZ Grain & Seed Ltd (TAG).
Decision # 200910111
Aussies Sell Out Of NZ Travel Agencies
Funds advised by CVC Asia Pacific Limited United States of America (56%), United Kingdom (9%), Singapore (8%), United Arab Emirates (6%), Netherlands (5%), Switzerland (5%), Japan (2%), Canada (2%), Malaysia (2%), Germany (2%), Australia (1%), South Africa (1%), Kuwait (1%) has received approval to acquire rights or interests in 100% of the shares of Europe Voyager Holdings S.a.r.l.* and each of the companies referred to in Schedule Two of the application letter which own or control: a freehold interest in 0.55 hectares of land at Unit 11, 239 Frankton Road, Queenstown; and a freehold interest in 3.37 hectares of land at Blue Water Resort Property, Tekapo-Twizel Road, Lake Tekapo, Canterbury. * S.a.r.l (also SARL) is a French acronym for a type of limited liability private company. Ed.
Approval was also received as the consideration was $100m. The vendors were existing shareholders of Global Voyager Holdings Pty Limited other than Funds Advised by CVC Asia Pacific Limited (Stella Group) Australia (100%). The OIO states: “Stella Group is a hospitality and travel group with operations in Australia, New Zealand, South Africa and the United Kingdom. The Stella Group’s hospitality businesses in Australasia are operated under the Breakfree, Mantra, Peppers and Saville brands and the Protea Hotels and African Pride brands in Africa. Stella Travel Services operates under the Harvey World Travel, Travelscene American Express, Holiday Shoppe, United Travel, Travel Bag and Global brand names.
“Currently, CVC Asia Pacific Limited indirectly owns 63% of the Stella Group through its subsidiaries. CVC Asia Pacific Limited proposes to increase its percentage interest in the Stella Group through a restructure and capital injection. Though the final ownership structure and percentages are yet to be determined, CVC Asia Pacific Limited seeks consent to hold up to 100% of the restructured Stella Group. CVC Asia Pacific Limited carries out the business of advising on investments in companies that demonstrate potential to grow and deliver increased value to the CVC’s Funds investors over the medium term. CVC Asia Pacific Limited believes that the investment in the Stella Group represents an opportunity to acquire profitable, market leading businesses with significant prospects for growth and value creation”.
CVC Asia Pacific is part of the giant private equity corporation CVC Capital Partners Group. CVC is a former arm of Citicorp, and is among the biggest private equity funds in the UK. See our commentaries in November 2001, February 2003 and June 2003 regarding previous acquisitions by CVC here in New Zealand. One of those was the takeover of Pacific Brands. For an excellent commentary on that as well as the private equity business generally, visit the National Distribution Union’s website.
See our February 2008 commentary regarding CVC’s original purchase into Stella. The Stella Group was an amalgamation of travel operations amassed by the ill-fated MFS group including Gulliver’s Travel Group, New Zealand’s largest travel agent (see our July 2006 commentary). At the time of the February 2008 approval, MFS was in dire financial trouble, and was selling Stella in a desperate attempt to survive. Clearly Stella and in particular Gulliver’s has not been a great investment for CVC. As reported by David Hargreaves in the Dominion Post (21/5/09):
“Gulliver’s Travel Group could face goodwill writedowns of about $59 million for the year to June because of the deteriorating global economic conditions in the past 12 months. The company is already reliant on financial support from its ultimate parent company in order to fulfil the ‘going concern’ criteria… Retail brands under the Gulliver’s/Stella umbrella include United Travel, Atlantic and Pacific Business Travel and Harvey World Travel. Auditors PricewaterhouseCoopers say both Gulliver’s and its immediate parent Stella Travel Services (NZ) are dependent on financial support from the CVC-controlled Global Voyager Holdings. Voyager has provided a letter stating that it would provide whatever support may be necessary over the next 12 months from the signing of the annual accounts. For the June 2008 year Stella Travel Services (NZ) made a $40.1 million loss, following on from an $80.9 million loss the year before.
“Despite having $73.4 million tipped into the coffers by Stella in Australia during the year, the New Zealand company at balance date had negative shareholders’ funds of $47.6 million and negative working capital of $6.9 million. The Stella Group in Australia announced early last month that it had reached an agreement to restructure its debt facility with banker UBS. Stella recently sold its 76% holding in South African accommodation chain Protea Hotels, while it has also reportedly sold the Harvey World brand in the UK”.
Decision # 200910116
But That’s Not Quite The End Of This Story
As signalled in that last paragraph from the Dominion Post, six days later, the OIO approved the purchase by UBS Australia Holdings Limited Switzerland (90%), Various (10%) of sensitive land, being the Applicant’s acquisition of rights or interests in up to 60% of the shares of Global Voyager Holdings Pty Limited, Aus SHG Holdco and Aus STS Holdco (being holding companies of the Stella Group of companies) and each of the companies referred to in Schedule Two of the application letter which own or control the properties mentioned in the previous decision, from the same vendors. The OIO adds:
“As part of the restructuring UBS Australia Holdings Limited will become a shareholder in each of the three Australian holding companies (Global Voyager Holdings, Aus SHG Holdco Pty Limited and Aus STS Holdco) (Australian Holdcos). The final ownership structure and percentages are yet to be determined, UBS Australia Holdings Limited will initially hold a minority stake in each of the three Australian Holdcos but has sought consent to hold up to 60% in each of those companies”. I can understand why the final ownership structure is yet to be determined: nobody wants to own it! Is this another hospital pass or perhaps a rather expensive corporate version of “pass the parcel?” I am sure this is not the last we’ll hear of this saga.
Decision # 200910131
ANZ Acquires More “Bleeding Mortgages”
ANZ National Bank Limited Australia (97.2%), Various (1.4%), New Zealand (1.4%) has received approval to buy rights or interests in a portfolio of loans secured by first ranking mortgages from Medical Mortgages Limited New Zealand (100%), consideration being $140 million. The OIO states: “The vendor is a special purpose vehicle established for the purposes of a wholesale Residential Mortgage Backed Securities securitisation programme set up by Medical Assurance Society New Zealand Limited under which the vendor issues commercial paper to the wholesale market in New Zealand and makes loans to borrowers on the security of first registered mortgages. Medical Assurance Society New Zealand Limited wishes to cease writing loans and issuing commercial paper and is undertaking a competitive sale process to sell the portfolio. The proposed acquisition of assets, being loans and mainly being advanced for the purposes of purchasing a residential property, falls within ANZ National’s core home lending business. The acquisition is of a high quality book of loans to a premium customer segment which ANZ National has identified as a segment in which it wishes to increase its presence”.
The quality of Medical Mortgages’ loan book was probably considered even better before the Commerce Commission took them to task over the incorrect calculation of mortgage break fees in May 2009. Medical Mortgages directors John Isles and Graham Jackson admitted breaching the Fair Trading Act by stating it could charge break fees calculated using a different formula to the one in the customer’s mortgage contracts. One hundred customers were to be refunded $80,000 as part of the Commerce Commission settlement. Never mind, I’m sure the ANZ will find other ways to “bleed” their new customers, financially speaking of course.
Decision # 200910124
US Taxpayer Bailout Rolls On, This Time Citigroup
United States Department of the Treasury United States of America (100%) has received OIO approval to acquire rights or interests in 34.7% of the shares of Citigroup Inc., the value of the assets of Citigroup Inc. and its 25% or more subsidiaries being greater than $100m. $3.830 billion to be precise! The vendors were existing shareholders of Citigroup, Inc. United States of America (100%). The OIO states:
“The Applicant is the United States Department of Treasury. In February and May 2009, Citigroup, Inc, (Citi) made announcements relating to its plan to engage in a series of transactions to issue new common stock in exchange for existing preferred securities, which will substantially increase Citi’s tangible common equity (i.e. ordinary share capital) without any additional United States Government investment. The transaction is intended to build Citi’s tangible common equity to a level that removes uncertainty and restores investor confidence in the company. The Investment is intended to build Citi’s ordinary share capital to a level that removes uncertainty and restores investor confidence in the company”.
Citi investors certainly have nothing to fear knowing that Uncle Sam will bail them out at the first sign of trouble. A more interesting question might be: “Who is going to bail out Uncle Sam? Citigroup has written down or lost around $US100 billion since the credit crunch began in 2007, and has received directly around $45 billion in bailout money from the US taxpayer. For an inside, behind the scenes commentary on the Citigroup bailout in November 2008, see “Colossal Financial Collapse: The truth behind the Citigroup Bank ‘Nationalisation'” by F William Engdahl at GlobalResearch.
Decision # 200910126
A “New” Owner For Holden?
Approval was received from the OIO for NGMCO, Inc. United States of America (88.3%), Canada (11.7%) acquisition of rights or interests in 100% of the shares of Holden New Zealand Limited, the value of the assets of Holden New Zealand Limited and its 25% or more subsidiaries being greater than $100m. Value was stated as $187,942,586. The vendor was General Motors Corporation United States of America (100%). The OIO states: “On 1 June 2009 , General Motors Corporation (GM) filed a voluntary petition for bankruptcy, and concurrently filed a motion to sell substantially all of its assets to a newly formed corporation, New GM (renamed General Motors Company). Under the arrangement, GM will sell substantially all of its global assets to the New GM. Holden NZ is part of the GM group of companies and is included as part of the proposed New GM. General Motors Company, or a direct or indirect wholly-owned subsidiary of General Motors Company will acquire the shares of Holden New Zealand Limited as part of the reinvention of the General Motors business. A fundamental purpose of the proposal is to instil the necessary confidence on the part of US consumers, employees, suppliers and other stakeholders to enable the New GM to be a viable and competitive player in the automotive industry “.
This is in fact another bailout by the US taxpayer of another pillar of US capitalism. 61% of the New General Motors Company (NGMCO) is now owned by the US government (at a cost of $60 billion. Another 11.7% is owned by the Canadian and Ontario governments. The alternative was liquidation which would have disastrous consequences for the US economy. As Judge Robert Gerber, who presided over the metamorphosis of GM into the New GM said, this “prevents the death of the patient on the operating table”, by breaking off GM’s assets into separate good and bad entities. How long GM will remain on the operating table is anyone’s guess, although Toyota’s recent problems in the US may give it a fighting chance. Hopefully it will have a negligible impact on Holden’s operations here.
Decision # 200910137
Contact Energy’s Geothermal Station Forces Marae To Be Relocated
Contact Energy Limited Various (52.7%), Australia (23.6%), New Zealand (14.2%), United States of America (6.3%), United Kingdom (3.2%) has received OIO approval for the acquisition of a freehold interest in 10.46 hectares of land at Piripiri Road, Ohaaki. Consideration was $882,563; the vendors were Gregory Eugene Schumacher, Margaret Clare Schumacher and LW Nominees Limited as trustees of the Schumacher Family Trust New Zealand (100.0%). The OIO states:
“Contact is required by its resource consents for the Ohaaki geothermal power station to affect remedial works, or undertake mitigation works, if subsidence occurs as a result of the operation of the Ohaaki geothermal power station. Geothermal subsidence caused by the Ohaaki geothermal power station appears to be causing the Ohaaki Marae, which is located along the Waikato River, to subside. It has been agreed that the Ohaaki Marae be relocated. Contact has entered into a conditional sale and purchase agreement with the vendor for approximately ten hectares of land to be used as part of a land swap agreement”.
But who has actually agreed to this? As reported by James Ihaka in the NZ Herald on 2/9/09: “A Bay of Plenty kaumatua says there is resentment over another likely shift of a marae slowly sinking into the ground because of activity at a nearby geothermal power station. Ngati Tahu kaumatua Rawiri Te Whare said there was ill-feeling among the tribe who will decide next week whether to relocate the Ohaaki marae, about 40km north of Taupo, which is sinking about 17cm a year. The subsidence has accelerated by geothermal draw-off after the Contact Energy-owned 65 megawatt Ohaaki geothermal power station was built nearby in the 1980s on land leased from Ngati Tahu.
“Mr Te Whare said relatives were forced to leave the original pa of the Ngati Tahu people at Orakei Korako, about 20km west of Ohaaki marae, in the early 1960s when Lake Ohakuri was developed for a hydropower dam. ‘We had to move in the 1960s and now again we are being forced to move a second time so, yes, the people are concerned about that and many are disappointed that has to happen’, said Mr Te Whare. ‘People are wondering whether they are the victims of these two organisations, Mighty River Power and Contact Energy’. Mr Te Whare said evidence of physical changes and subsidence in the marae’s surrounding landscape was difficult for the untrained eye to see.
“‘Everything still appears to be in place … but the evidence from the experts shows the marae has gone down by at least two metres. ‘What is clear is that the water level of the Waikato River is lapping the marae now. At high water the road that runs nearby the marae is closed off and that situation is gradually becoming a permanent situation’. Mr Te Whare said whanau members had not yet reached a general consensus on moving the marae. But the eleventh hour was fast approaching and a hui to decide the marae’s fate would be held next weekend. Mr Te Whare said the proposed relocation site was on elevated land about a kilometre from the marae’s present site.
“The new marae would retain the name Ohaaki but it was likely carvings would be removed from the meeting house, Tahumatua, and it would be burned to the ground. A new house would be built at the new site. Mr Te Whare did not know how much the relocation and building the new meeting house – both of which Contact Energy have agreed to finance – would cost but it was expected to be into the millions. Contact is also paying neighbouring farmer Greg Schumacher between $600,000 and $800,000 in a land swap”. And Environment Waikato on its Website states that the “natural features at Ohaaki Geothermal System have been irreparably damaged by development for power generation”.
Contact is listed on the New Zealand Stock Exchange and is the largest wholesaler and retailer of natural gas and one of the largest generators and retailers of electricity in New Zealand. Contact generates approximately 30% of New Zealand’s electricity through its ten power stations located in New Zealand. For more on Contact Energy, see “Electricity Reforms And Contact Energy Ltd”, by Sue Newberry and Bill Rosenberg, in Watchdog 108, April 2005.
Contact has purchased several properties with the OIO’s blessing in the past (see July 2006, September 2007, and January, July, October and November 2008, and February 2009). And, of course, Contact Energy has unfortunately been a frequent finalist in the Roger Award (for details of why Contact was, most recently, a Roger Award finalist in 2008, see the Judges’ Statement here).
Decision # 200910122
Westpac Buys CEO’s Multi-Million Dollar “Bunker”
Multi-million dollar house sales are not that unusual in Auckland. However this purchase by Westpac from its Chief Executive Officer seems rather nepotistic, and as you will see below, this is no ordinary house. Approval was received by Westpac Banking Corporation Australia (92.9%), New Zealand (7.1%) for the overseas investment in sensitive land, being the Applicant’s acquisition of a freehold interest in 0.2314 hectares of land at 22 Winscombe Street, Belmont, North Shore City. Consideration was stated as confidential, the vendor was Bradley John Cooper and Joanne Maree Walker Australia (100%). The OIO states:
“Mr Cooper is an employee of Westpac Banking Corporation (WBC). Mr Cooper was originally employed by Westpac New Zealand Limited as its Chief Executive, during which time Mr Cooper was resident in New Zealand and the land was his principal place of residence. Relocation arrangements agreed in connection with Mr Cooper taking up a new position with WBC in Sydney included WBC’s purchase of the property at a price determined by reference to independent valuations if a third party buyer was not found within an agreed period “.
The questions have to be asked. Firstly, what were the chances of finding a buyer for a house like this in a recession? And secondly, how objective would a valuation be, given the uniqueness of the property? The NZ Herald reported details of this property saga on 2/2/09: “In 2007, Brad Cooper and his partner, Joanne Walker, bought Robin and Erica Congreve’s designer Belmont house known locally as the ‘bunker’, for its tough appearance, sturdy square style and dark grey exterior walls. The two-level house is one of the country’s most praised and has won many awards for architect Pip Cheshire, formerly of Jasmax. In 2001, it topped the National Business Review (NBR) list of the 100 best New Zealand homes.
“Agents marketing the house this year boasted that this 1,000sq m home on a 2,314sq m site had garaging for eight cars, a movie theatre, heated pool, art work by Ralph Hotere and clifftop vistas to Rangitoto. Two thousand tonnes of concrete, wood and stainless steel were used in its construction and the house faces Rangitoto Island. Cooper was here for little more than a year and the house has been on the market for months. Now, Westpac says it needed State clearance to buy the house – partly because Cooper is an Australian and partly because Westpac is 92.9% Australian-owned.
“‘Relocation arrangements agreed in connection with Mr Cooper taking up a new position with Westpac in Sydney included Westpac’s purchase of the property at a price determined by reference to independent valuations if a third-party buyer was not found within an arranged period’, the application for the property’s purchase said. The price Westpac is paying has been suppressed. QV lists the property as being worth $6.8 million, of which $4.1 million is its clifftop section, which is next to a reserve”. Given the flak global bankers have been receiving of the past couple of years, it seems quite appropriate Cooper choose to reside in a bunker. I wonder if Westpac will be keeping it for their next CEO?
Decision # 200910089
Chemical Giant Gains Foothold in New Zealand
BASF SE (formerly named BASF Aktengisellschaft) Germany (45.1%), United Kingdom (17.3%), United States of America (13.5%), Various (7.7%), Switzerland (5.7%), Belgium (5.5%), Luxembourg (5.2%) received approval for an overseas investment in sensitive land, being the acquisition of a freehold interest in 0.61 hectares of land at 45 William Pickering Drive, North Harbour, Auckland. Consideration was $460,000; the vendor was Degussa Construction Chemicals Germany (100%). The OIO states:
“The Applicant is the largest chemical company in the world. On 1 July 2006 the Applicant acquired the shares of Degussa Construction Chemicals (the Target) and therefore acquired Degussa Construction Chemicals New Zealand Limited (Degussa NZ), a wholly owned subsidiary of the Target. As a result of the transaction the Applicant acquired an interest in sensitive land, being the Land subject to this application. The global acquisition allowed the Applicant access to intellectual property of Degussa Construction Chemicals (Target). The Applicant supplies chemicals for use in the construction and home building industry. Through the share acquisition, the Applicant has acquired access to technology, patented processes and expertise within the Target. The acquisition allowed the Applicant access to the intellectual property of the Target from around the world”.
According to Wikipedia: “The BASF Group comprises more than 160 subsidiaries and joint ventures and operates more than 150 production sites in Europe, Asia, Australia, Americas and Africa. Its headquarters are located in Ludwigshafen am Rhein (Rhineland-Palatinate, Germany). BASF has customers in over 200 countries and supplies products to a wide variety of industries. Despite its size and global presence BASF receives little public attention as it abandoned consumer product lines in the 90s. At the end of 2008, the company employed more than 96,000 people, with over 47,000 in Germany alone. In 2008, BASF posted sales of €62 billion and income from operations before special items of over €6.8 billion. The company is currently expanding its international activities with a particular focus on Asia. Between 1990 and 2005, the company invested €5.6 billion in Asia, for example in sites near Nanjing and Shanghai, China and Katipalla in India”.
Decision # 200810082
Other July Decisions
Koreans plan golf resort on the outskirts of Christchurch. Christchurch Golf Resort Limited South Korea (100%) (Young Hwan Na and his wife Pil Ja Choi) have received approval to purchase a freehold interest in 92.99 hectares of land at 122, 144, 143 and 165 Turners Road and Lower Styx Road, Christchurch. Consideration was $11,250,000; the vendors were Richards Bros Limited and Richards Farm Limited New Zealand (100%). The OIO states: “Young Hwan Na had previously been granted consent by the Overseas Investment Commission to acquire 92.99 hectares of land situated at Lower Styx Road (the Richards land) on 13 October 2003 and to acquire the neighbouring 63.79 hectares of land situated at Spencerville Road, Christchurch (the Spencerville land) on 27 February 2004. The acquisition of the Spencerville land was settled on 13 October 2004. The Richards land has not yet been acquired. Christchurch Golf Resort Limited has entered into an option agreement and seeks consent to acquire the relevant land. Christchurch Golf Resort Limited was formed to acquire and then build, own and operate the proposed Christchurch Golf Resort which includes a golf academy, and related golf resort facilities”.
Decision # 200810072
Willow Bay Company Limited United States of America (100%) received approval to acquire a freehold interest in 45.38 hectares of land at 290A Hereputu Road, Matata. Consideration was $838,125; the vendor was Casofilia Trust New Zealand (100%). According to the OIO, Willow Bay proposes to improve the farm by fertilising it and creating a herd of Simmental cattle ultimately numbering 100 head. See our commentaries for March 1999, October 2000, and May 2001 for further land purchases by Willow Bay (David Dean Smith).
Decision # 200910087
New Zealand Agriseeds Limited Netherlands (100%) received approval to acquire a freehold interest in 64.75 hectares of land at Addingtons Road, Courtenay, Canterbury. Consideration was $1,743,750; the vendor was John Austin Robert Colee New Zealand (100%). According to the OIO, NZ Agriseeds specialises in the breeding, production, and marketing of high performance pasture varieties, predominantly ryegrass and clover species, for the temperate pasture market of the Southern Hemisphere. It proposes to acquire the land to expand its development programme and to secure a long-term tenure to replace some of the land currently leased on a short-term basis. See our May 1999 commentary for more information on the Dutch owners (Barenbrug) of NZ Agriseeds.
Decision # 200910107
Waiaua Bay Farm Limited United States of America (100%) (a company incorporated in New Zealand, and wholly owned by Julian Hart Robertson Jr. Mr Robertson resides in New York and is a citizen of the United States of America) received approval to acquire a freehold interest in 3.60 hectares of land at Farrycroft Row, Queenstown. Consideration was stated as confidential, the vendor was Matakauri Trust and Matakauri Lodge Trust New Zealand (100%). Robertson is one of the more high profile overseas purchasers of NZ real estate, having recently decided to donate some major art works to the Auckland Art Gallery (only after he and his wife dies). See our commentaries for September 2000, February/March/April and November 2002, February 2003 and May 2006 regarding some of his other land purchases.
Decision # 200910118
And finally a boutique vineyard changes hands. Craggy Range Vineyards Limited Australia (95%), New Zealand (5%) (95% in Australia by Terrence Elmore Peabody, and 5% in Aotearoa by Stephen Mark Smith and Laura Bridget Cunningham Smith) received approval to acquire a leasehold interest in 36.03 hectares of land at Locharburn, Cromwell – Luggate Highway, Otago. Consideration was $570,000; the vendor was Otago Crown Wines Limited United States of America (100%). See our commentaries for December 1998, October 2000, July 2004, October 2005, and August and September 2006 regarding other Craggy Range purchases here.
Decision # 200910132
Summary Statistics July 2009
Asset value
| July 2009 | Jan-July 2009 | Jan-July 2008 | |
|---|---|---|---|
| Number of approvals | 16 | 84 | 77 |
| Net Investment $ | 28,623,043 | 139,141,912 | 977,265,005 |
| Gross value of consideration | 4,737,806,938 | 6,621,389,920 | 4,547,581,256 |
| Asset Value | 4,502,942,586 | 15,957,942,444 | N/A |
Freehold land approved for sale
| July 2009 | Jan-July 2009 | Jan-July 2008 | |
|---|---|---|---|
| Number of approvals | 10 | 71 | 56 |
| Net land area (ha) | 216 | 13,665 | 6,504 |
| Gross land area (ha) | 686 | 199,131 | 14,107 |
Other interests in land approved for sale (for example leases and crown pastoral leases)
| July 2009 | Jan-July 2009 | Jan-July 2008 | |
|---|---|---|---|
| Number of approvals | 2 | 13 | 16 |
| Net land area (ha) | (2) | 916 | 14,251 |
| Gross land area (ha) | 61 | 90,693 | 24,579 |
Applications denied
| July 2009 | Jan-July 2009 | Jan-July 2008 | |
|---|---|---|---|
| Number of declines | 0 | 0 | 2 |
| Total proposed purchase price ($) | 0 | 0 | 2 |
| Total proposed area to be acquired (ha) | 0 | 0 | 3,096 |
Fishing Quota
As usual there was no fishing quota approved for sale this month.
Campaign Against Foreign Control of Aotearoa,
P.O. Box 2258
Christchurch.