Foreign investment in Aotearoa/New Zealand

Overseas Investment Office – July 2012 Decisions

Vision Senior Living And Private Life Care merge

Metlifecare Limited Retirement Villages Group, Australia (50.1%), New Zealand Public (48.7%) and various overseas persons (1.2%) received two approvals. Firstly approval was received for the acquisition of rights or interests in up to 100% of the shares of Vision Senior Living Limited (“VSL”) which owns or controls:

a freehold interest in 4.4 ha of land at 35 Cobham Road, Kerikeri; and
a freehold interest in 2.2 ha of land at 30 Matarangi Road, Auckland; and
a freehold interest in 5.6 ha of land at Minogue Drive, Te Rapa, Hamilton.

This included approval for an overseas investment in significant business assets, being the Applicant’s acquisition of rights or interests in up to 100% of the shares of VSL, the value of the assets of VSL and its 25% or more subsidiaries being greater than $100m. The vendors were existing shareholders of Vision Senior Living Limited New Zealand Public (79.4%), Australian Public (13.3%) and various overseas persons (7.3%); the asset value was $346,000,000.

In the second decision, approval was received for the acquisition of rights or interests in up to 100% of the shares of Private Life Care Holdings Limited (“PLC”) which owns or controls:

a freehold interest in 4.7 ha of land at 1-5 Longford Park Drive, Papakura; and
a freehold interest in 5.3 ha of land at 461-469 Hillsborough Road, Hillsborough, Auckland.

This included approval for an overseas investment in significant business assets, being the Applicant’s acquisition of rights or interests in up to 100% of the shares of PLC, the value of the assets of PLC and its 25% or more subsidiaries being greater than $100m. The vendor was Retirement Village Investments Limited Retirement Villages Group, Australia (100%); the asset value was $317,000,000.

The OIO states: “Metlifecare Limited (“Metlifecare”) is acquiring 100% of the shares of VSL and PLC in exchange for shares in Metlifecare. This merger transaction is expected to provide the merged entity with increased scale, geographical diversification, stronger cash flow, greater stability and a significant development and growth prospects”. See our October 2005 and February 2009 commentaries for details of Retirement Villages Group purchase of Metlifecare.

Germans Buy 1,000 Hectare Farm Near Taihape

NMP Farm Investment GmbH and Oceania Agrar Investitions GmbH Oceania Agrar GmbH & Co. KG and Aquila AgrarINVEST III GmbH & Co. KG, Germany (100%) received approval to acquire rights or interests in 100% of the units of Pukeokahu Farming Limited Partnership which owns or controls a freehold interest in 991.7 hectares of land at 1406 Pukeokahu Road, Taihape. The vendor was Pukeokahu Properties Limited New Zealand (100%); consideration was $8,672,300 (includes plant and stock). The OIO states: “The Applicant intends to develop the farm to increase its carrying capacity, productivity and profitability with a simpler more focused production system”. See our March and December 2010 and March, April, May and August 2011 commentaries for details of other dairy farm purchases here by this German investment fund, primarily in Southland.

Bathurst Consolidates Its Land Holdings In Southland

Bathurst Resources Limited Australian Public (87.5%), New Zealand Public (11.2%) and various overseas persons (1.3%) received approval to acquire a freehold interest in 269.6 hectares of land at Nightcaps, Southland. The vendor was John Douglas Carmichael, Sandra Robyn Carmichael and AWS Trustees No 30 Limited as trustees of the Jubilee Hill Farm Trust New Zealand (100%); consideration was $14,150,000. The OIO states: “The Applicant is currently operating a coal mine on part of the land under an agreement with the landowners. The balance of the land is being farmed by the landowners. The Applicant’s mine plans have evolved to the point where it is no longer practical for farming and mining to co-exist on the land. The Applicant is purchasing the land to ensure it can progress its existing and planned mining operations”. See our March 2011 commentary for details of Bathurst’s original leasehold purchase of the site.

Other July Decisions

Carbon Conscious Holdings NZ No.2 Limited Australian Public (100%) received approval to acquire a freehold interest in 190 hectares of land known as Kings Farm located at 1025 Riverside Road, Gisborne. The vendor was William Robert King New Zealand (100%); consideration was $390,000. The OIO states: “The Applicant intends to acquire the land to establish a pinus radiata forest sink plantation that generates carbon credits and will have long term timber harvest potential for both domestic and export use”. See our March 2011 and May 2012 commentaries for details of other Carbon Conscious’s purchases in Aotearoa.

Richard Lewellen Griot United States of America (100%) received approval to acquire a freehold interest in 1.8 hectares of land at 20 Strathfield Lane, Whitford. The vendor was Selwyn John Taylor, Julie Marie Taylor and Robert Gordon Foster New Zealand (100%); consideration was confidential. Griot intends to acquire the land to use as a residence and intends to reside indefinitely in New Zealand. Griot already owns 7.5 hectares at 16 Strathfield (see our October 2011 commentary), but obviously this is not enough.

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