Foreign investment in Aotearoa/New Zealand
Overseas Investment Office – January 2013 Decisions
Americans To Buy UK Controlled Endace
A very quiet month at the OIO. Firstly, El Dorado Research Ventures Limited United States Public (98.1%) and various overseas persons (1.9%), received approval for the acquisition of rights or interests in up to 100% of the shares of Endace Limited, the consideration of which exceeds $100m.The vendors were Existing shareholders of Endace Limited United Kingdom Public (75.6%), New Zealand Public (12.5%) and various overseas persons (11.9%): Consideration was $152,775,178.
The OIO states: “Emulex Corporation (the parent company of the Applicant) views the acquisition of Endace Limited as an opportunity to enhance Emulex’s network product offerings through Endace’s market-leading network visibility and recording solutions”. Endace Limited (Endace) is a New Zealand incorporated company that owns a group of companies that provide computer network security and related systems throughout the world. See our May 2005 commentary for details of an earlier share placing to United Kingdom investors.
Koreans Buy 1,000 Hectare Forest In Waihopai Valley
SCFNZ Limited Sunchang Corporation, South Korea (100%) received approval for the acquisition of a freehold interest in 1,053.7 hectares of land at Waihopai Valley Road, Benhopai, Marlborough. The vendor was the Shanks 1993 Family Trust New Zealand (100%); consideration was kept confidential. The OIO states: “The Applicant is a subsidiary of Sunchang Corporation, a Korean listed company, which manufactures plywood, fibreboard and lumber for commercial and industrial purposes. The overseas investment will allow Sunchang Corporation to secure a portion of the logs it requires from its own forests which will enable it to control the quality of those logs. The Applicant intends to harvest and replant the land to ensure a steady supply of timber”.
Kat Pickford of the Marlborough Express reported further details on this and other sales (5/3/13): “A South Korean company has bought 1,000 hectares of land in the Waihopai Valley, expanding its Marlborough forestry holdings to almost 4,000ha. Information from the Overseas Investment Office (OIO), the Government agency that oversees the sale of land to foreigners, shows the South Korean company was given consent to buy just over 1,000 hectares of land in Benhopai, Waihopai Valley Rd in January. The price was confidential.
“OIO documents showed SCFNZ Ltd, which is owned by South Korean company Sunchang Corporation, planned to harvest and replant the land to ensure a steady supply of timber. The Benhopai sale was the company’s second Marlborough land purchase within six months. In August (2012) it bought 2,900ha of forestry land on Northbank. Sunchang, which specialises in the manufacture of plywood, fibrewood and lumber for commercial and industrial purposes, is one of many overseas companies eager to secure timber supply. Logging contractor suppliers and timber exporters YS International, believed to be managing Sunchang’s Marlborough holdings, did not return calls yesterday.
“Peter Weir, Environmental Manager for Ernslaw One which owns a major tract of forestry in Marlborough owned by the Tiong family from Malaysia, said Asian companies were looking for forestry land in New Zealand, Australia and South Africa. Land with more than 1,000 millimetres of annual rainfall, an export port within 100 kilometres, a skilled workforce, and reasonable Resource Management Act requirements at the right price was very attractive for investors, he said. ‘Marlborough’s Resource Management Act is very good; forestry is clearly banned on the river flats to encourage it on the hill slopes not suitable for farming’. Another Tiong company he provides management services for, Timbergrow, also expanded its Marlborough holdings last year, buying almost 1,400ha of Waihopai land in September to plant trees”. See our August 2012 commentary for details of the Northbank purchase by SCFNZ.
And Swiss Buys Into 1471 Hectare Ruakaka Station, Gisborne
Middle Mount Limited Heinrich Martin Henny, Switzerland (100.0%) received approval for the acquisition of a freehold interest in approximately 1,471 hectares of land, known as Ruakaka Station at Tiniroto, near Gisborne. The consideration was $5,100,000; the vendors were Ruakaka Station Limited Eugene Akuhata King and Pania Marie King, New Zealand (44%), Ronald Akuhata King and Justine Gayle King, New Zealand (31%) and Ronald Ahukata King, New Zealand (25%).
The OIO states: “The Applicant will continue to operate Ruakaka Station as a sheep and beef farm, but will commit significant funds for its development. One of the owners of the vendor will become co-owner of a company that will operate the farm”. See our commentaries for August and December 2006, September 2009, September 2010, August 2011 and August 2012 for details of Henny’s growing portfolio here.
Other January Decisions
Matthew Joseph Monahan United States of America (100%) received approval for the acquisition of a freehold interest in 4.3 hectares of land at 329 Whitemans Valley Road, Upper Hutt. The consideration was $1,290,000; the vendor was Darryn Andrew Lyons and Peter John McLeod New Zealand (100%). Mr Monahan intends to acquire the land to use as his primary residence and as a home office. The Applicant intends to migrate to New Zealand and become a New Zealand resident under Immigration New Zealand’s Entrepreneur Category.
Campaign Against Foreign Control of Aotearoa,
P.O. Box 2258
Christchurch.