Foreign investment in Aotearoa/New Zealand

Overseas Investment Office – December 2011 Decisions

US Company Plans Ambitious Geothermal Power Development

Another reasonably busy month at the OIO. Firstly Tikitere Limited Partnership Ormat Technology Inc, United States of America (100%) received approval for the acquisition of interests in up to 902 hectares of land located between Lake Rotoiti & State Highway (SH) 30, Rotorua. Approval was also received for an overseas investment in significant business assets, being the Applicant’s establishment of a business in New Zealand which is expected to require total expenditure exceeding $100m to establish and will be carried on for more than 90 days in any year. The vendor was Tikitere Geothermal Power Limited New Zealand (100%); the cost of commencing business was stated at $200,000,000.

The OIO states: “Tikitere Limited Partnership (“TLP”) is ultimately owned by Ormat Technologies, Inc., a New York Stock Exchange (NYSE) listed company involved in providing solutions for geothermal power, recovered energy generation and remote power. TLP is seeking to investigate a geothermal resource located within the land located between Lake Rotoiti & SH 30, Rotorua with a view to building and operating a geothermal power plant. To this end, they have entered into a ‘build, operate and transfer’ agreement with Tikitere Geothermal Power Limited (“TGPL”, a joint venture vehicle for the various Maori trusts that own and administer the land). Under the agreement TLP may acquire an interest in parts of the land for the purposes of the project. TLP’s interest in the land and ownership of the power plant will revert to TGPL once TLP has had the benefit of operating the facilities for a period of time or the agreement is terminated”.

However as Mike Watson reported in the Christchurch Press (7/2/12) this ambitious plan doesn’t yet have the full support of the Maori land trusts involved. “A United States-based geothermal power generation company has Overseas Investment Office approval to invest $200 million in a proposed 45 megawatt power station on Maori-owned land near Rotorua. Similar construction projects have provided work for up to 400 people over a two- to three-year period. When operational, the power station, capable of generating electricity to 40,000 homes, could provide work for 20 staff.

“The Ormat Technology project could add to a raft of geothermal power projects worth hundreds of millions of dollars in the central North Island recently completed or planned by big players such as Contact Energy and State-owned Mighty River Power (but not to be State-owned for too much longer, as it is slated to be the first State-Owned Enterprise to be partly privatised, in late 2012. Ed.).The investment by Tikitere Ltd Partnership, wholly owned by Ormat Technology, was approved by the OIO in December 2011.

“Under the proposal, the subsidiary would work with three Maori land trusts – Tikitere, Paehinahina Mourea and Manupirua Ahu Whenua, known as Tikitere Geothermal Power Ltd – to build and run the station on 900 hectares between Lake Rotoiti and State Highway 30. Tikitere Ltd Partnership has agreed ownership and operation of the station and any interest in the land would revert to the trusts after 14 years. However, a group of shareholders from the three trusts says the project could be delayed because of inadequate consultation. After Maori Land Court hearings, the group has lodged an application to the Court of Appeal to have the trustees who signed the deal with Ormat removed.

“‘The shareholders are not against the project in principle but … communication and consultation between trustees and shareholders has been totally lacking’, a spokesman for the group said. ‘The shareholders now see a big international company moving in on their land without having talked directly to the people who live there’. There was also concern over whether Ormat would return ownership to the trusts after 14 years, he said. And resource consents had not been granted. ‘It is not a done deal and there is still a long, long way to go before any holes are drilled’.

“A Tikitere Ltd spokesman said several conditions, including resource consent, still had to be met before construction would begin. The investment criterion had been one of the conditions. The $200 million funding by Ormat represented expenditure over the life period of the power station, and not only the construction cost, he said. Rotorua District Council Economic Projects Manager Nick Dallimore said the proposal was a huge opportunity for the community to receive a significant return on the investment. Nationally, geothermal power now accounts for about 13% of electricity generation, about three times the amount coming from wind power'”.

James Cameron Buys Two South Wairarapa Farms

In two separate decisions, Hollywood film magnate and creator of two of the most successful box office films, “Titanic” and “Avatar”, James Cameron has bought two farms in southern Wairarapa. Firstly, Anglin Classics, LLC James F Cameron, Canada (100%) received approval to acquire a freehold interest in 818 hectares of land at Western Lake Road, South Wairarapa. The vendor was Pounui Holdings Limited William Shaw, New Zealand (50%) and Annette Shaw, New Zealand (50%); consideration was stated as confidential. Secondly Europa Research, LLC James F Cameron, Canada (100%) received approval to acquire a freehold interest in 249 hectares of land at Western Lake Road, South Wairarapa. The vendor was Allan Walter Newman, Heather Marion McCreary and Thomas Rob McCreary as trustees of the Rob & Heather McCreary Trust New Zealand (100%); consideration was also confidential. The OIO states with respect to both approvals: “James F Cameron and his family intend to reside indefinitely in New Zealand and are acquiring the property to reside on and operate as a working farm”. While the OIO kept the purchase price confidential, Seamus Boyer reporting in the Dominion Post (2/2/12) had an overall figure in mind.

“Hollywood director James Cameron paid about $20 million for two large rural properties, whose purchase was confirmed yesterday after they were given the green light by the Overseas Investment Office (OIO) in December 2011. Cameron has bought more than 1,000 hectares of land in remote South Wairarapa with a view to moving there ‘indefinitely’ with his family. One of Cameron’s new properties is a low-lying 250-hectare dairy farm, sold by Heather and Rob McCreary, which runs along the southern end of Western Lake Rd. The other is a much larger 817ha hillside property overlooking Lake Pounui, where it is thought likely Cameron will build a house. The property includes large sections of native bush; much of it covered by covenant, and was sold by Bill and Annette Shaw, who started the nearby luxury resort Wharekauhau Country Estate.

“The owners of the two properties are not commenting on the sales, citing strict confidentially agreements. Mr Shaw said he had been ‘sworn to secrecy’, while Mrs McCreary refused to comment. Cameron, a Canadian who is thought to have New Zealand residency, is expected to come to New Zealand later in 2012 to start work on two sequels to “Avatar”, the biggest grossing movie on record. “Avatar” was made with Wellington’s Weta Digital, which provided the visual effects for the film and won an Oscar for its work.

“But OIO documents released yesterday show that Cameron’s New Zealand connection will be more than just a working one. ‘James F Cameron and his family intend to reside indefinitely in New Zealand and are acquiring the property to reside on and operate as a working farm’, it says. One of Cameron’s new neighbours, who did not want to be named, said people had known about the sale for ‘a little while’. ‘Those who are involved haven’t said anything because of all the secrecy, but people around here have been talking’.

“She said she was yet to met the filmmaker, although he is known to have visited the properties at least once. ‘I don’t know the man; I’ve never met him, so I don’t know if he’s good, bad or indifferent. If these people come here to live and be a part of our community, then I would have absolutely no problem with that. But if he’s just here as an overseas absentee landowner, then I have reservations’. Another neighbour, Dougal MacKenzie, said the hillside property featured uninterrupted views over Lake Pounui and out to the sea beyond, and backed on to forest park land. ‘It’s about as private as you can get’.

“The two properties are on the western shore of Lake Onoke, on a rural road 35 kilometres southwest of Featherston. While the properties are a 90 minute drive from central Wellington, they are just a ten minute helicopter ride from Wellington Airport. They are also just minutes down the road from Wharekauhau Country Estate, a favourite of Wairarapa’s other famous filmmakers, Sir Peter Jackson and wife Fran Walsh, who own an estate outside Masterton. Wharekauhau is a private country lodge with cottages, suites and self-contained houses on 2,023ha of rolling coastal farmland. The resort was sold in 2010 and the surrounding land in 2011, with American businessman William P Foley II the major shareholder.

“Destination Wairarapa Director Barbara Hyde said she was not surprised to hear of the move. ”People who come from overseas to work in the film industry come to Wairarapa for the weekend – just like Wellingtonians do – and they love it here. It has the benefit of being close to Wellington for filmmaking but is very different in style and lifestyle. ‘And the lifestyle here clearly fits with Wellington and with the film industry’. She said Wairarapa, as well as Wellington, had long been associated with filmmakers. ‘Whenever I go outside the region and meet people it frequently comes up – ‘Doesn’t Peter Jackson live there?’ – this will only add to that awareness and recognition for the region’.

“South Wairarapa Mayor Adrienne Staples said the arrival was a coup for the district. ‘I’m pleased when anyone from outside the district moves to South Wairarapa, whether they’re from overseas or from here, but the fact we have such a high profile person really lifts the morale of everyone in the district’. She said she had no idea Cameron was coming before it was revealed yesterday. Federated Farmers were also quick to welcome the country’s newest dairy farmer. National President Bruce Wills said it was positive Cameron’s application to the Overseas Investment Office mentioned that he planned to maintain a working farm. ”The hope we have from skilled immigration is that it betters the whole community’.

Vampire Squid Buys Lloyds NZ Loan Portfolio

NZ Property Finance Partners – comprised of the Goldman Sachs Group, Inc affiliates (50%) and Brookfield Asset Management Inc affiliates (50%) United States Public (59.75%), Canadian Public (30.75%), Kuwaiti Public (8%) and various (1.5%) received approval for the acquisition of the New Zealand property loan book owned by BOS International (Australia) Limited, which forms part of Lloyds International Pty Limited’s Australasian loan portfolio, being property used in carrying on business in New Zealand for consideration of a value in excess of $100 million. The vendor was BOS International (Australia) Limited Lloyds Banking Group Plc, United Kingdom (100%); consideration was stated as confidential. The OIO states: “The New Zealand property loan book includes 22 loans secured against significant commercial property titles in New Zealand. The loan book will be combined with the respective property loan investment businesses of the Brookfield and Goldman Sachs investment groups”.

So why is Lloyds selling this portfolio? Karen Scherer in the New Zealand Herald (23/3/12) gave a number of compelling reasons. “The British-owned bank that in 2011 refused to renew its loans for the Whitcoulls and Borders chains has estimated it has more than $A4 billion ($5.5 billion) of impaired loans in Australia and New Zealand. Latest accounts filed by BOS International with the Companies Office show its bad loans have almost doubled over the past year from $A2.2 billion in 2009 to $A4.2 billion in 2010. Bad loans now make up a third of its total loans – up from 16% in 2009. As a result, the bank has recorded a pre-tax loss of around $A1 billion – even larger than its $A827 million loss in 2009.

“The increase has prompted the bank’s London-based Chief Executive, Eric Daniels, to admit he is ‘disappointed’ with its performance in this part of the world. The loss will inevitably lead to further speculation about the bank’s future in Australasia. BOS International used to be owned by HBOS Australia. It was bought by Lloyds at the height of the global financial crisis, but Lloyds itself had to be bailed out by the British government, and is now 41% owned by British taxpayers.

“The bank has not disclosed how many of its bad loans are in New Zealand. However, in 2009 it revealed it had around $2 billion of loans in this country. More than half of its loans for property investment were impaired at the end of last year, as were more than 60% of its loans for property development. At its peak, the bank employed about a dozen people in New Zealand, specialising in the risky end of the corporate market, including leveraged buyouts, acquisitions, and property and project finance.

“Finance companies it is known to have loaned money to include Geneva and Strategic Finance, and buyouts it is believed to have been involved in include REDgroup, Noel Leeming, Qualcare, Tegel, MediaWorks, Metropolitan Glass, Ezibuy, Aperio, and Eldercare. It also helped back two of the biggest property developments ever seen in New Zealand – the $1 billion Kawarau Falls Station development in Queenstown, and Pegasus Town north of Christchurch.

“In the High Court at Auckland this week, a representative from the bank was watching insolvency proceedings involving property developer Nigel McKenna. A court document revealed two McKenna companies owe BOS International more than $36 million, including $20 million for the Kawerau Falls development, and $16.6 million for Melview’s Viaduct Harbour development. In 2011 BOS International refused to renew its loans to Australian private equity company Pacific Equity Partners for its investment in REDgroup, which in this country includes the Whitcoulls and Borders chains. The decision forced PEP to put its own money into the company, but REDgroup continued to struggle and was last month placed in voluntary administration.

“Another of BOS International’s loans, to Australian private equity company Gresham, is believed to be due for renewal soon. The loan relates to Gresham’s investment in the Noel Leeming Group, which includes the Bond & Bond retail chain. According to accounts filed by Noel Leeming in 2011, it had about $75 million in loans which are due to be repaid by June 2012. While Daniels has stressed Lloyds’ international loans make up only 4% of its total assets, he has also noted they are ‘subject to very close management’. Across its entire international portfolio, 95% of its ‘country risk’ was in Australia and New Zealand, with the remainder in Asia, he told analysts last month.

“BOS International insists it has sufficient support from Lloyds to ensure it is able to meet its liabilities in this part of the world for the foreseeable future. It has played down further risks from the floods in Queensland and Victoria, and the Christchurch earthquake, saying it does not expect any significant losses ‘at a single credit level’ as a result of the disasters. Its accounts reveal it has a loan facility from its parent for $A17.2 billion which matures in 2020. At the end of 2011 it had drawn down $A10.6 billion of that. Last week, Lloyds announced plans to lay off 570 staff worldwide. Since 2008, it has slashed 26,000 jobs”. And why would someone buy such a dodgy portfolio? Well that depends on the price paid. So long as these loans haven’t tanked, the Vampire Squid aka Goldman Sachs is sure to suck what remaining life there is, out of them.

Private Equity Takes 50% Stake In Purex, Etc.

Despite not having any luck with BOS in the previous decision, PEP still appears to have some money in the bank. Specifically Pacific Equity Partners Pty Ltd, on behalf of a group of investment funds managed and/or advised by Pacific Equity Partners Pty Limited and its affiliates various overseas persons (100%) has received approval to acquire up to 100% of the shares in PEPSCA Pty Limited which, through its New Zealand subsidiaries, PEPSCANZ Limited, SCA Hygiene Holding Limited and SCA Hygiene Australasia Limited, has New Zealand assets with a value in excess of $NZ100 million.

The vendor was Svenska Cellulosa Aktiebolaget SCA Swedish Public (69.4%), United States Public (11.7%), other overseas shareholders in Svenska Cellulosa Aktiebolaget SCA, various (11.7%) and United Kingdom Public (7.2%); consideration was $A230,000,000. The OIO states: “PEP and the PEP Funds are financial investors. PEP’s strategy, as adviser to the PEP Funds, is to invest in business opportunities where PEP’s management expertise, capital resources and understanding of financial structuring enables it to improve the operating performance and create value in the relevant businesses prior to realising its investments in those businesses. The PEP Funds have identified the PEPSCA group as a financially sound investment opportunity and accordingly have decided to make the investment”.

SCA’s brands include TENA, Sorbent and Purex and it has two manufacturing plants in Australia, two in New Zealand and one in Fiji, as well as distribution centres across the three countries. SCA’s hygiene and paper brands, including Sorbent, Purex, Libra and Handee Ultra, were originally acquired from Carter Holt Harvey, owned by New Zealand’s richest man Graeme Hart. See our May 2004 commentary for details. Anne Gibson in the New Zealand Herald (3/2/12 reported further on this deal.

“Control of some of New Zealand’s biggest toilet paper and sanitary product brands has changed hands in a $230 million deal. High profile private equity business Pacific Equity Partners now owns half the businesses behind many top selling toilet tissue, baby nappy and paper towels brands here. Toilet and facial tissue Sorbent, Libra feminine hygiene products, Handee, Handee Ultra and Tuff Mate paper towels, Tork commercial hygiene products, Treasures nappies, Deeko tableware, Purex and Orchid toilet paper, Tena incontinence products and Viti tissue products were named in PEP’s application to the Government for clearance on the deal which needed state approval because it was worth $100 million plus.

“PEP has bought half the Australasian operations of Scandinavia’s Svenska Cellulosa Aktiebolaget. SCA announced in late 2011 it was forming a joint venture partnership for its existing operations in Australasia with PEP. ‘Working with local partners and in joint ventures in selected markets is a strategy that works well for SCA. This deal in Australasia enables a more efficient financing as well as it increases the speed of development of the operations,’ the business said.

“Tissue products are manufactured at the company’s sites in Victoria’s Box Hill, Te Rapa and Kawerau here and in Fiji. Kerrin Thomson, SCA Hygiene Australasia’s Supply Director based here, said the PEP deal had made little difference to the New Zealand operations so far. ‘We’re still employed by the same company on the same terms and conditions’, Thomson said. SCA Hygiene Australasia has New Zealand offices in Henderson and Thomson said the business owned a Kawerau plant in the Bay of Plenty where it made paper which was then turned into finished product at Te Rapa in Hamilton…”

Chinese-Controlled Synlait Buys Factory Land

Synlait Milk Limited Bright Dairy and Food Co., Ltd, People’s Republic of China (51%), New Zealand Public (37%) and Japanese Public (12%) received approval to acquire a a freehold interest in 48.5 hectares of land at 1028 Heslerton Road, Dunsandel. The vendor was Synlait Farms Limited New Zealand Public (75.5%) and Japanese Public (24.5%); consideration was $1,111,111. The OIO states: “Synlait Milk Limited (Synlait) proposes to acquire the freehold of the land at Dunsandel which it currently leases. The land is the site of Synlait’s milk processing facility. Obtaining long term control of the land will give Synlait a solid basis and secure position on which to continue building its business to a level that will be of substantial benefit to Canterbury and New Zealand”.

Apart from concerns around foreign ownership of our farms, the issue of food safety in China has once again potentially tainted our milk supply reputation. The following by Tim Cronshaw was reported in the Press (30/6/12). “Canterbury milk processor Synlait is standing by its Chinese majority owners which are caught up in a food safety scare. Shanghai company Bright Dairy & Food Co had to recall about 300 cartons of milk in China after reports this week it was found tainted with an alkaline detergent.

“The detergent is believed to have been used for cleaning milk equipment and found its way into the company’s branded Ubest fresh milk, resulting in cartons being removed from shelves. Synlait Chief Executive John Penno said Synlait had been kept informed of ‘the issue. Our only comment would be Bright has an extremely good reputation in the Chinese market. They are taking the matter very seriously and working with authorities and investigating it. We don’t know more than that’.

“Penno declined to comment if the milk recall would harm Synlait’s reputation. Nor was he in a position to distance this incident from previous food safety scares with milk in China. ‘We don’t want our shareholders involved in a major problem’. The partnership between the companies was unveiled in 2010 with Bright Dairy investing $82 million for a 51% controlling stake in Synlait. Bright Dairy is majority-owned by Bright Food Group and its main shareholder is the Shanghai municipal government. The cash injection contributed towards doubling the size of Synlait’s Dunsandel processing site with Bright’s connections providing markets for high quality infant and wholemilk powders in China.

“Penno has previously said Synlait would distance itself from ‘quality issues’ by not mixing or blending its premium products with other products in China and they would be exported in packs ready for supermarkets. Bright Dairy is understood to have issued apologies for the tainted milk, compensated customers and is testing equipment. Authorities are considering the incident mismanagement rather than intentional wrongdoing, according to English language Chinese newspaper Global Times.

“China has a history of milk controversies and the worst was the melamine scandal in 2008 when several babies died and tens of thousands were made sick from milk contaminated with melamine added by farmers to restore protein levels after water was placed in milk to increase volumes. Much of the contamination focus centred on SanLu although other companies were involved. New Zealand cooperative Fonterra was a part-owner of SanLu at the time and blew the whistle by insisting on a recall. It was forced to exit processing in China at large cost. Since then infant formulas made by Fonterra and other New Zealand milk companies have been high in demand by Chinese shoppers distrustful of local product. Global Times said the Bright Dairy recall comes just weeks after China’s leading dairy producer Inner Mongolia Yili Industrial Group recalled baby formula milk because of mercury contamination”. See our September 2010 commentary for details of Bright’s original purchase of a 51% stake in Synlait.

Indonesians Take 50% Stake In Southlands Blue River Dairy Systems

Southern Trustees 2010 Limited and McCulloch Trustees 2010 Limited as trustees of the Tieke Trust Tachril Family, Indonesia (100%) has received approval to acquire 50% of the shares of BRDP Limited Partnership which owns or controls a freehold interest in 1,543.8 hectares of land near Invercargill located at:

Brydone Farm, located at Downs South Road;
Antler Downs Farms 1 and 2, located at Winton-Hedgehope Highway and Creek Road; and
Antler Park Farms 1 and 2, located at Mako Road, Keen Road and Winton-Hedgehope Highway.

The vendor was Blue River Dairy Products Limited, Antara AG Limited, Merona Limited, Southern Deer Corporation Limited, 2C Management Limited (together, the “Blue River Group”) Keith Neylon Springhills Trust, New Zealand (100%); consideration was stated as confidential. The OIO states: “The Applicant’s investment will be used to commercialise the Blue River Group’s existing sheep milking systems and technologies. The Applicant considers it is uniquely placed to use its network of business contacts in Indonesia and South East Asia to promote and market Blue River Group’s products”.

TV3, in reporting this deal (16/4/12), also raised the connection between Tachril and the Suharto family. “The Prime Minister is in Indonesia pushing New Zealand’s trade links there, which includes the export of sheep milk there. Indonesia already has plenty of interest in New Zealand – in buying our farmland. An Indonesian billionaire with close links to former President Suharto’s family has taken a 50% share in a Southland farming operation based in Brydon, Winton, and Hedgehope.

“It is a seemingly typical Southland dairy farm, but a closer look shows they are milking sheep – a flock of 15,000. Southlander Keith Neylon came up with the idea, saying they produce better milk than cows. ‘It’s quite sweet, its creamy, soft, its got a nice after taste flavour… And it makes brilliant ice cream’, he says. Blue River Dairy is targeting Asia with their sheep milk. In Indonesia there are 243 million people, and a booming middle class that wants protein-based products. ‘They like the product, it fits their psyche. It is easily digested’, Mr Neylon says.

“Prime Minister John Key has never tried sheep milk but is impressed with the idea. ‘That’s a great example of something that’s not really of interest in New Zealand, but is really of interest to the Asian market’. To get to this point Mr Neylon had to sell a 50% stake in the 1,500 hectare farm to Mohamed Tachril, one of Indonesia’s richest men, who owns numerous Indonesian shopping malls. The Overseas Investment Office approved the sale based on Mr Tachril’s contacts, Mr Neylon says.

‘He’s been in New Zealand for 20 odd years. He loves the place and holidays there. He’s an asset to both sides. He sees what Indonesia requires and he knows what we’ve got’. And that asset includes Tachril’s connections here, such as to the family of Indonesia’s former dictator Suharto through long established business dealings with one of his sons. ‘I knew they were related earlier on. But that was then, this is now’, Mr Neylon says .Mr Key says connections like these should not stop investment. ‘I think they are a fact of life in Asia. The Suharto family and their wide ranging interests were well known’. Mr Neylon forcefully dismisses criticism of foreign ownership like with his venture or the Crafar farms as ‘xenophobic. I think it comes from a degree of small-mindedness’.

“Mr Key says Indonesia is an opportunity for New Zealand. ‘There’s a massive market out here. It’s one thing to recognise the market; it’s another thing to have the tentacles to reach into it’. So as the debate about foreign ownership rages on in New Zealand, the question is whether to shut out investors who own places like Mr Neylon’s sheep farm – and can break down the barriers to Indonesia’s trillion dollar economy. And the Government’s position is clear – we need to seize these opportunities – or we will squander them.”

Other December Decisions

Wilson Parking New Zealand Limited Roturbo Pte Ltd, Singapore (100%) received approval to acquire a leasehold interest in 4.2 hectares of land at Princes Wharf, 147 Quay Street Auckland. The vendor was Metro Wharf Limited Ironwood Trust, New Zealand (50%) and Wyborn New Investment Trust, New Zealand (50%); consideration was stated as confidential. The OIO states: “The acquisition of the investment is consistent with the Applicant’s current business strategy to acquire further car park facilities. The rationale for this strategy is to enable the Applicant to make significant long-term investments in the car park facilities.”

Foley Family Wines Holdings, Inc. (FFW) William P Foley II and Carol J Foley, United States of America (95%) and United States Public (5%) received approval to acquire rights or interests in up to 100% of the shares of Foley Family Wines Holdings, New Zealand Limited which owns or controls:

a leasehold interest in 37.2 hectares of land at 50 Martins Road, Martinborough; and
a freehold interest in 8.6 hectares of land at 89-91 Martins Road, Martinborough; and
a freehold interest in 17.3 hectares of land at Longbush Road, Longbush, Sth Wairarapa; and
a freehold interest in 65.1 hectares of land at Ruakokoputuna Road, Ruakokoputuna, South Wairarapa; and
a leasehold interest in 37.4 hectares of land at Ugbrooke Road & Redwood Pass Road, Dashwood, Marlborough; and
a freehold interest in 6.6 hectares of land at 91 Purutanga Road, Martinborough; and
a freehold interest in 66.1 hectares of land at Redwood Pass Road, Dashwood, Marlborough

The vendor was Te Wineinc Pty Limited Australia (100%); consideration was $0. The OIO states: “The Applicant owns a 92.52% share of FFW Holdings NZ. FFW Holdings NZ in turn owns 100% of Foley Family Wines Holdings, NZ Limited which owns or leases around 238 hectares of viticultural land in Marlborough and the Wairarapa. The original acquisition of this land by the Foley Family wines group was previously consented… The Applicant has been granted consent to increase its shareholding in FFW Holdings NZ from 92.52% to 100% in multiple transactions over a period of five years. Transactions which may occur under this consent include the acquisition of Wineinc Pty Limited’s 5.12% shareholding in FFW Holdings NZ (resulting from the unwinding of a cross-shareholding and cross-directorship arrangement).” See our commentary for October 2009 for details of other vineyard purchases here by Foley and August 2011 for this original purchase.

Calum Kerr McKenzie & Felicity Jane McKenzie United Kingdom (100%) received approval to acquire a freehold interest in 208 hectares of land at 310 State Highway 12, Opononi, Hokianga; and a leasehold interest in 46.2 hectares of land at 310 State Highway 12, Opononi, Hokianga. Consideration was $1,360,000. The vendor was Gayle Elaine Lloydd & Shane Michael Lloydd New Zealand (100%). According to the OIO, the Applicants intend to reside indefinitely in New Zealand. They are acquiring the land to use as a grazing and fattening block for cattle. The Applicants may at a later date explore the possibility of converting the land into a dairy farm or use it as a run-off block should they acquire an additional dairy farm in the area.

Rodney Clutton & Patrizia Vieno Patrizia Vieno, Italy (100%) received approval to acquire a freehold interest in 985.7 hectares of land at Rewa Rewa Station, located at 166 Rewa Rewa Road, Tinui, Masterton. The vendor was Robert Douglas Cameron & Donald Graham Dobson New Zealand (100%); consideration was $5,192,930. The Applicants, who intend to reside in New Zealand indefinitely, are acquiring the property so they can live and work on the farm.

Forest Lake Gardens Properties Limited Waikato Racing Club Incorporated, New Zealand (45%), New Zealand Public (17.8%), Arcus Holdings (NZ) Limited, New Zealand (17.6%), Australian Public (14.6%) and various overseas persons (5%) received approval to acquire a freehold interest in 0.35 hectares of land at Minogue Drive, Hamilton. The vendor was the Waikato Racing Club Incorporated New Zealand (100%); consideration was $287,500. The OIO states: “The Applicant intends to acquire the Land to expand the adjoining Forest Lake Gardens retirement village by constructing a further ten units”.

Newlcast Pty Limited ESCO Corporation, United States of America (100%) received approval for the acquisition a leasehold interest in 0.85 hectares of land at 25 Thomas Burns Street in Dunedin. The vendor was Farra Engineering Limited New Zealand (100%); consideration was $1,094,461. The OIO states: “The Applicant currently operates a steel foundry upon the land (which it has leased in Dunedin since 2007). The acquisition will allow the Applicant to continue to operate and develop its foundry operation”.

Manning Investment Trust Louise Katrina Beale, Australia (100%) received approval to acquire a freehold interest in 6.6 hectares of land at 598 Lake Hawea-Albert Town Road, for $690,000. The vendors were GA Findlay & CM Trustees (2007) Ltd as to 1/2 share and GA Findlay, KE Findlay & CM Trustees (2007) Ltd as to 1/2 share New Zealand (100%). Louise Katrina Beale and James Manning intend to immigrate to and reside indefinitely in New Zealand on the property.

Campaign Against Foreign Control of Aotearoa,
P.O. Box 2258
Christchurch.