Foreign investment in Aotearoa/New Zealand

Overseas Investment Office – November 2014 Decisions

Canadian Pension Fund Buys AMP’s NZ Property Portfolio For $1b

Another busy month at the OIO with a number of large valued approvals. Firstly the Public Sector Pension Investment Board Canadian Government (100%) received approval for the Applicant’s acquisition of a freehold interest in approximately 35ha of land located at six locations around New Zealand; and an overseas investment in significant business assets, being the Applicant’s acquisition of property in New Zealand used in carrying on business in New Zealand for consideration exceeding $100m.

The vendor was AMP Capital Property Portfolio Limited New Zealand Public and Various Entities, New Zealand (70.3%) and New Zealand Superannuation Fund, New Zealand (29.7the asset value was $1,033,122,024. The OIO states: “The Applicant is acquiring the assets in order to diversify its global real estate portfolio and intends to continue the current use and management of the portfolio of assets. The Applicant has identified significant potential development opportunities for four of the properties”.

Anne Gibson in the New Zealand Herald (11/7/14) reports on this large deal: “The new Canadian owners of the $1 billion real estate fund have opportunities to expand in New Zealand by further investing in real estate assets at Botany, Manukau, Tauranga and Christchurch, according to the man in charge of managing the business. Stephen Costley, General Manager of AMP Capital Property Portfolio (APP), the country’s most valuable unlisted real estate fund, said assets already in the fund offered big opportunities to the new owners and he named those four areas as having the biggest growth potential. ‘There’s a number of opportunities in the portfolio for further investments and it’s our task to present those to the owner. We have opportunities already within the assets to redevelop and extend’, Costley said.

“Yesterday, AMP Capital Investors announced it had agreed to sell APP’s 18 New Zealand properties valued at $1 billion-plus to Canada’s Public Sector Pension Investment Board, a deal conditional on Overseas Investment Office approval. The NZ Superannuation Fund had a 29.69% stake in APP and said it had sold out as well. The 18 properties include large retail assets such as Auckland’s 60,000sq m Botany Town Centre and the 40,000sq m Manukau Supa Centa as well as Wellington’s 13-level PricewaterhouseCoopers Tower and adjoining 12,600sq m Capital on the Quay retail area.

“Costley, who works from level 16 of the PwC Centre on Quay St, said around 50 staff were employed to manage APP and for them, it was business as usual. Some of the staff work within the APP properties, such as shopping centre management staff. ‘We’re going to carry on the management function for the purchaser. This is a tremendous result for the investors who asked the Manager to take the portfolio to market and it’s good for the buyer who is looking to invest on behalf of Canadians’ he said, adding that it made little difference what nationality the owners of the properties were. ‘There’s been a period of due diligence. We know them [the Canadians] and we’re getting to know them better’, said Costley, who returned from Australia nine years ago to take his current position.

“Plans were already in place to upgrade some of the assets, which would enhance values, Costley said. APP’s 15-level Tower Centre office and retail building at 45 Queen St in Auckland’s CBD, opposite Queen Elizabeth II Square, has been undergoing an extensive upgrade for months. The block on the Queen St/Customs St corner is getting a new range of luxury brand retailers: Prada, Christian Dior and Swarovski, shortly due to open in the ground-floor lobby, in premises once occupied by the National Bank, Watches of Switzerland and Champions of the World. ANZ’s refurbished branch in the ground floor opened some time ago. Costley said the investors who sold out of APP included two arms of AMP, including AMP Life, and the super fund.

“Justin Kean, JLL Research and Capital Markets Director, said the Canadians bought APP for returns of around 8% on commercial property, beating Canada’s 5.5% and London’s sub-5%. ‘This deal is driven purely by financial metrics. The price they paid looks good but not outrageous. They didn’t over-pay. This transaction started in the last quarter of last year so they spent a lot of time looking at it. A transaction like this shows that international investors who spend time getting to know NZ end up being enamoured with the place’, Kean said.

“Not all Canadian investments in New Zealand have gone well. In 2007, Yellow Pages was sold to Hong Kong-based Unitas Capital and Canada’s Ontario Teachers’ Pension plan for $2.24 billion, the largest leveraged buy-out in New Zealand. But by December 2010, the directories business recorded a $1.44 billion loss for the June 30 year, one of the biggest corporate losses in New Zealand”. Readers will recall this huge Canadian pension fund is already a significant stake holder in Kaingaroa Forest.

Hart Sells Carter Holt Harvey Mills To The Japanese

In another $1 billion deal, Oji Oceania Management (NZ) Limited Japanese Public (45.6%), Government of Japan (43.3%) and various (11.1%) received approval for the acquisition of rights or interests in up to 100% of the shares of Carter Holt Harvey Pulp & Paper Limited which owns or controls:

a freehold interest in approximately 2,570 hectares of land at Kinleith Mill and associated land; and
a freehold interest in approximately 60 hectares of land in the Bay of Plenty (forestry blocks); and
a freehold interest in approximately 350.2 hectares of land at Tasman Mill and associated Land; and
a leasehold interest in approximately 21 hectares of land at Tasman Mill and associated Land; and
a leasehold interest in approximately 3.4 hectares of land at Pukeko Street, Hamilton; and
a leasehold interest in approximately 1.5 hectares of land at McLaughlins Road, Manukau.

Approval was also received 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 Carter Holt Harvey Pulp & Paper Limited, the consideration of which exceeds $100m.The vendor was Carter Holt Harvey Limited Graeme Richard Hart, New Zealand (100%); consideration was $1,036,700,000.The OIO states: “The applicant has been granted consent to acquire the vendor’s pulp, paper and packaging business (‘PPP Business’). The applicant is seeking to significantly expand its international operations, and considers that the PPP Business is a suitable long-term investment that is compatible with its existing businesses including those in New Zealand (i.e. Pan Pac Forest Products Limited’s plantation forests and lumber-processing / pulp business). The applicant plans to improve the PPP Business with a range of efficiency and productivity initiatives”.

According to the Commerce Commission, which has also approved the deal, the business assets affected by this acquisition will comprise the Kinleith pulp and paper mill, the Tasman pulp mill, the Penrose paper recycling mill, and packaging businesses in New Zealand and Australia. Oji is a global producer of paper and packaging products. In New Zealand, Oji owns 100% of Pan Pac Forest Products Limited, which owns forests and operates a sawmill and a thermo-mechanical pulp mill, all in Hawke’s Bay.

This appears to be the one of the last significant assets in the Carter Holt group of companies which Hart bought in 2006 and has been gradually breaking up and selling off to the highest bidder, so he can pay for his global packaging empire. The sale of this business, following on from the previous sale of its packaging and forestry interests, leaves Hart’s company with a trans-Tasman building supplies group comprising Carter Holt Woodproducts and the Carters retail chain. See our October 2006 commentary for details of Hart’s sale of over 240,000 hectares of Carter Holt forests to Hancock Natural Resource Group Inc. of the USA, and the fight by Maori owners of some of this land to stop the sale.

Turners and Growers Buys Large Hawkes Bay Apple Orchard

Turners and Growers Limited Baywa Aktiengesellschaft, Germany (73.1%), New Zealand Public (26.8%) and various overseas persons (0.1%) received approval for the acquisition of a freehold interest in approximately 172.5 hectares of land in the Hawkes Bay; and a leasehold interest in approximately 363.9 hectares of land in the Hawkes Bay. The vendors were Apollo Apples Limited New Zealand (100%), Michael Timothy Cotter, Erin Lesley Cotter and Vosper Trustees Limited New Zealand (100%), Kevin George Williams and Dan William Druzianic New Zealand (100%), Michael Hamilton Aveling and Lyn Maree Norgaard Aveling New Zealand (100%) and Marist Holdings (Greenmeadows Limited) New Zealand (100%); consideration was $54,216,000. The OIO states: “Turners & Growers (‘T&G’) proposes to acquire the business and assets of Apollo Apples Limited (‘Apollo’), an apple growing company based in Hawkes Bay, together with four other orchard properties. T&G intends to develop the Apollo orchards by planting apple trees on spare land, and by acquiring the four additional orchards”.

Freshfruitportal.com reports on the deal in detail (15/414): “New Zealand produce multinational Turners & Growers Limited’s (NZX: TUR) has entered an agreement to acquire vertically integrated apple operator Apollo Apples Limited for a starting payment of more than $NZ43 million (U$S37 million). The sum combines an initial payment of N$Z36.05 million ($US31.17 million) payable in cash at completion for the fixed assets, brands and trademarks of Apollo, as well as around $NZ7.1 million ($US6.14 million) for an equivalent of the company’s working capital. The deal states that a further $NZ8 million ($US6.9 million) could be paid to the vendor in cash over four years following completion if certain performance benchmarks are met or surpassed.

“The official buyer in the deal is a subsidiary that is wholly owned by T&G called Apollo Apples (2014) Limited. T&G has also agreed to acquire a 50% shareholding in a small processed apple foods business called Apollo Foods Limited (AFL) for $NZ1 million ($US864, 683). Apollo grew, packed and exported around 1.4 million cartons of apples last year, and has ownership or is leasing over 500 planted hectares of apple orchards in the Hawke’s Bay area. It also owns and operates a large packhouse and coolstore facility in Whakatu.

“A company release said all permanent employees of Apollo would be offered employment with the Turners & Growers group. This includes Apollo’s founders Bruce and Ross Beaton, who have committed to continuing to be involved in the Apollo business for at least the next four years. ‘We are delighted that Bruce, Ross and the Apollo team have agreed to merge Apollo with ENZA. Apollo is well respected within the industry and is perfectly aligned to our ENZA business strategy with its complementary skills and capabilities’, said T&G CEO Alistair Hulbert.

“‘This acquisition demonstrates our commitment to further invest in the NZ apple industry, improve grower returns and increase NZ apple exports. We need to serve the demand of a greater number of export customers and markets. We welcome the Apollo team to the Turners & Growers family and look forward to working together’. Apollo Apples Managing Director Bruce Beaton labelled the deal as a ‘fantastic opportunity’ for Apollo to continue its growth strategy. ‘Apollo has witnessed the improvements at ENZA since BayWa invested in Turners & Growers. We welcome such supportive shareholders who can support the investment we require to grow Apollo’, Beaton said. ‘We look forward to contributing to the combined success of Apollo and ENZA and the further benefits this brings to our orchard landlords, third party growers, customers and dedicated employees’. Completion is subject to certain conditions including consent to the acquisition being obtained under the Overseas Investment Act and the assignment of certain material contracts. The last of these conditions is expected to be satisfied within four months”. See our March 2012 commentary for details of how Turners & Growers fell into German hands and our June 2014 commentary for details of another Hawkes Bay purchase by T&G.

Germans Buy Auckland’s Lumley Centre

Deka Immobilien Investment GmbH in its capacity as trustee/fund manager of the Deka-ImmobilienGlobal Fund German Public (95%) and European Public (5%) received approval for the acquisition of property in New Zealand used in carrying on business in New Zealand for consideration exceeding $100m, that property being the Lumley Centre at 88 Shortland Street, Auckland. The vendors were Perpetual Trustee Company Limited as Trustee for Dexus Property Group Australian Investors, Australia (41.4%), North American Public (26.7%), United Kingdom Investors, United Kingdom (12.1%), Asian Investors, various (10.2%), European Investors, various (9.3%) and various overseas persons (0.3%); consideration was $146,000,000. The OIO simply states: “The Applicant is acquiring the property to add to its property portfolio”.

Colin Taylor in the New Zealand Herald (16/8/14) reports on the interest in this building: “In New Zealand’s biggest commercial office transaction for the past six years, Deka Immobilien, a German investment fund, has purchased Auckland’s landmark Lumley Centre on Shortland St for $146 million. The sale on behalf of Australian based Dexus Property Group followed a competitive bidding process run by real estate agencies Knight Frank and JLL and reflected a net initial yield of 7.08% on the purchase price.

“Deka Immobilien is a global investment fund with property assets of $25 billion located in 22 countries. This is their first acquisition in New Zealand. Constructed by Mansons TCLM, the Lumley Centre at 88 Shortland St is one of the most recent additions to the Auckland office market, providing 15 floors of modern and premium grade office space. It has a net letable area of 19,478 sq m with large 1300 sq m floor plates and six levels of associated car parking on a freehold 2935 sq m CBD site.

“The building is 93% leased to leading commercial firms including Simpson Grierson, Minter Ellison Rudd Watts, Macquarie Group and Lumley General Insurance. The property produces a net annual income of $10,336,867 and has one of the longest Weighted Average Lease Terms (WALTs) in the market at eight years, as at October 1 this year. Lumley Centre was jointly sold by Layne Harwood, Richard Horne and Neil Brookes of Knight Frank alongside Nick Hargreaves and Simon Storry of Jones Lang LaSalle.

“Harwood, Knight Frank’s country head and managing director, said it was very rare that a commercial property asset of such quality became available to purchase. The offer showcased a strong demand, particularly from overseas investors, seeking exposure to the New Zealand and Auckland office market. ‘Deka, in acquiring the flagship premium office building, beat seven competitive bidders in the process, who were keen to profit from Auckland’s impressive rental growth and strong investment fundamentals,’ Harwood said.

“Neil Brookes, Knight Frank’s Head of Capital Markets in Asia Pacific, said there was strong interest from overseas investors based in Europe, Asia and the United States, who were ‘attracted by the prospect of owning a trophy office property in a strengthening office market such as Auckland’. Ross Du Vernet, of Dexus, said the Lumley Centre represented a non-core asset for Dexus. ‘We are very pleased to capitalise on the superb strength of the New Zealand economy for our investors’.

“Horne, Knight Frank’s Managing Director NSW, said the Lumley Centre was one of only five premium office towers in Auckland. “Only two of these buildings have ever been on the market with the last transaction occurring in 2005. The building has an excellent history of attracting and retaining tenants. Its rental growth and capital value is supported by the Auckland office market in which premium grade office space accounts for approximately 8% and forecast supply is limited’, Horne said.

“Situated in an elevated position in the heart of Auckland’s central business district, the Lumley Centre features uninterrupted views over the Waitemata Harbour, with the two top floors benefitting from external decks with far-reaching views of the city and Hauraki Gulf. The building is moments away from city centre rail, bus, ferry and boat terminals; nearby shopping outlets and entertainment within the Downtown precinct, on Queen St and in High St. It is also close to the Auckland waterfront and Britomart, which have undergone extensive redevelopment over recent years occupied by numerous bars, restaurants and fashion retailers. Nick Hargreaves, New Zealand Managing Director of JLL, said the New Zealand economy was growing ‘with Auckland infrastructure upgrades underway and the plan for the city to become the most liveable in the world taking shape. These factors, alongside low vacancy rates (currently 3.8% and 4.3% across premium and A-grade stock) offer a positive outlook'”.

Japanese To Restart Milton Sawmill

Pan Pac Forest Products Limited Japanese Public (79.6%) and various overseas persons (20.4%) received approval for the acquisition of a freehold interest in 16.9 hectares of land at 28 Limeworks Road, Milburn, Milton; and a freehold interest in 20.7 hectares of land at 447 Waihola Highway, SH 1, Milburn, Milton. The vendor was Southern Cross Forest Products Limited (in Receivership) Hagen Family, United States of America (89.5%), Whitefield Family Company Limited, New Zealand (10%) and Mark de Lautour, New Zealand (0.5%); asset value was $1,418,000. The OIO states: “A timber manufacturing and processing plant was previously operated on the land by the Vendor. The Applicant will resume operations and has committed significant funds for redevelopment of the plant”.

While this is good news for Milton, other sawmills in the Otago and Southland regions appear to be closing as Timothy Brown reports in the Otago Daily Times (23/7/14, “Sale No Solace For Mosgiel”). “Milton’s second wind is little solace to Mosgiel workers, a union spokesman says. Amalgamated Workers’ Union spokesman Calvin Fisher said while the purchase of Southern Cross Forest Products’ Milton-based sites was ‘great for the people of Milton’, it was cold comfort for the workers laid off from Southern Cross’ Mosgiel wood mouldings plant. ‘It’s great news for Milton and it’s great for the region … but for the people in Mosgiel, which is a flagship operation, sadly it’s a different story’, Mr Fisher said.

“Milburn sawmill and Millstream’s drymill assets will be sold by receivers KordaMentha to Pan Pac Forest Products, if the sale gains the approval of the Overseas Investment Office (OIO), creating 30 jobs at the sites. ‘The opportunities for the same good-news story in Dunedin are sadly lacking,’ Mr Fisher said. 101 Otago-based Southern Cross staff were laid off progressively from mid-June after receivers KordaMentha failed to sell Southern Cross’ four Otago sites as a going concern. About 400 people were employed by the company, most of them in Otago, when it went into receivership in March. ‘The workers have a right to feel let down’, Mr Fisher said.

“He still placed the blame for the company’s demise at the feet of the Dunedin City Council and City Forests, which could have saved the company by negotiating long-term supply contracts at ‘sustainable’ prices, he said. However, Dunedin Mayor Dave Cull rejected the criticism when the closure of Southern Cross’ Otago sites was flagged in May, saying: ‘What the union is suggesting is that City Forests should take a lower price, make a lower profit, and pay a lower dividend to the ratepayers – so essentially, they are suggesting the ratepayers of Dunedin subsidise the jobs of the wider Otago sawmilling community’.

“Mr Fisher said the specialist Mosgiel factory and skilled staff working at it were now lost to Otago’s economy. ‘It’s absolutely gone’, he said. ‘The staff have gone – they have been made redundant. The machinery, the large majority … has already gone. It’s just way beyond reality [to believe the site had a future]. ‘This is a high-end finishing-of-product factory in Mosgiel and it’s gone from our town’. Receiver Brendon Gibson, of KordaMentha, said the assets of Southern Cross’ Balclutha and Mosgiel factories, as well as the sawmilling aspect of the Millstream site, were being tendered. The land and buildings would be sold separately from the machinery. He was pleased a buyer was found for the Milton sites but ‘we unfortunately haven’t been able to do that for the others”, he said. ‘It’s been a difficult process… If we can sell these sites [Mosgiel and Balclutha], ultimately, they might offer some employment as well’.

“Pan Pac Forest Products Lumber General Manager, Michael Reaburn, said the process to get the OIO’s approval of the sale had begun. OIO Manager Annelies McClure said the Office had not yet received an application for the sale. The sale would probably be classified as a category 2 or category 3 application and could take up 70 working days to process, she said. OIO approval was needed because Pan Pac Forest Products was owned by Japanese corporation Oji Holdings Corporation”. Pan Pacific with extensive forestry holdings may not have the same supply issues which appear to be the cause of Southern Cross’s demise. See our September 2006, 2010 and 2012 commentaries for details of Southern Cross’s sawmill purchases here.

Chinese Take Control Of Invercargill Meat Processor

Lianhua Trading Group Limited Shenzhen Lianhua Enterprise Development Co., Limited, China, People’s Republic of (100%) received approval for the acquisition of rights or interests in a further 50.1% of the issued share capital of Prime Range Meats Limited, which owns or controls:

a freehold interest in approximately 17.6 hectares of sensitive land at Switzer and Sussex Streets, West Plains, Invercargill including the registration of a general security agreement and second ranking mortgage over this land; and
a freehold interest in approximately 81.5 hectares of land at West Plains Road and Moore Road, Invercargill.

The vendors were AM Forde Family Trust and Tulloch Holding Trust Tulloch family, New Zealand (50%) and Forde family, New Zealand (50%); One Muff Too Tough Trust and Tulloch Property Trust Tulloch family, New Zealand (50%) and Forde family, New Zealand (50%); Existing shareholders of Prime Range Meats Limited other than Lianhua Trading Group Limited Tulloch family, New Zealand (50%) and Forde family, New Zealand (50%). Consideration was “withheld under section 9(2)(b)(ii) of the Official Information Act”.

The OIO states: “The Applicant is increasing its shareholding in Prime Range Meats Limited, a meat processor in Invercargill. The Applicant will invest significant capital over the next five years to support and develop Prime Range Meats’ processing and exporting business, to provide meat for the Chinese market”. Jamie Gray in the New Zealand Herald (24/11/14) reports on the background to this deal: “China’s Lianhua Trading Group has gone to majority control of Invercargill meat processor, Prime Range Meats.Lianhua, whose parent company – Shenzen Lianhua Enterprise Development Co – has its own retail network in China, said had increased its holding to 75% from 24.9%. Prime Meats said the move meant it was ‘firmly hooked’ into a secure supply chain in China through the parent, which has Haidilao Hot Pot Chain and McDonalds as customers.

“The move has been approved by the Overseas Investment Office (OIO), which was required because part of Prime Range Meats assets include 99.1 hectares of land used for holding stock for the plant, some of which is sensitive wetlands and bush. Prime Meats Managing Director Tony Forde, and shareholder, Southland motor racing personality Inky Tulloch, and associated parties, have sold down after diluting their shareholdings earlier this year, through the issue of new shares. The new capital would be spent on Prime Range Meat’s plant, it said.

“‘While we are not ready to hang up our boots yet, Inky and I are not getting any younger and the future of Prime Range Meats really needed to be secured’, Forde said in a statement. ‘This deal means the plant will get the capital it needs to be not only sustainable, but expand over the next five years’, he said. Force said the company’s work force would increase from the current 120 to around 170 as a result of the move. The meat industry has continued to struggle with issues of overcapacity and competition for stock. ‘This will be a real boost to all Southland and Otago farmers, who now have one solid option that stands out from the turmoil about the future of the red meat sector’, Forde said.

“‘Prime Meats is ready to talk to interested farmers about what we can offer now and to show them the future potential of having long term supply arrangements for quality stock’. Lianhua Executive Director Mark Ma said the group was formed at the start of this year to invest in the beef and sheep meat industry in New Zealand. Ma, a permanent resident who has lived in Auckland since 1999, had been charged with finding the best ways to secure further beef and sheep meat for the supply chain in China.

“‘That way we are able to ensure we get the cuts that are suitable for the Chinese market, which are often different to the traditional cuts that New Zealand processors have supplied to Europe and the United States’, Ma said. Shenzen Lianhua’s food industry division has been responsible for importing thousands of tonnes of beef and sheep meat in to China since the 1990s from places like Brazil, Uruguay, Argentina and Australia, as well as New Zealand. Last year it brought nearly $500 million of red meat in to China. Ma said its team is highly experienced at handling the requirements needed to meet China’s Inspection and Quarantine Services specifications for food arriving at China’s borders”.

Housing NZ Sells Hobsonville Site To Singaporeans

AVJ Hobsonville Pty Limited SC Global Developments Pte Limited, Singapore (50.3%), Australian Public (41%) and Singapore Public (8.7%) received approval for the Applicant’s acquisition of a freehold interest in 15.2 hectares of land at Catalina Precinct, Hobsonville. The vendor was Hobsonville Land Company Limited Housing New Zealand Corporation, New Zealand (100%); consideration was again “withheld under section 9(2)(b)(ii) of the Official Information Act”. The OIO simply states: “The Applicant is acquiring the land for development into housing, including affordable housing, for the Auckland market”.

Americans Take Control Of Trinity Hill

Terroir Winery Fund LP United States of America (100%) received approval for the acquisition of rights or interests in a further 42.03% of the securities of Trinity Hill Limited (whereby the Applicant will, in total, hold up to 67.02% of the securities of Trinity Hill Limited), which owns or controls:

a freehold interest in approximately 19 hectares of land at Gimblett Road and
a freehold interest in approximately 18 hectares of land at State Highway 50, Hastings; and
a freehold interest in approximately 10.5 hectares of land at 125 Gimblett Road, Hastings; and
a freehold interest in approximately 8.2 hectares of land at State Highway 50, Hastings; and
a freehold interest in approximately 35.8 hectares of land at 1700 Raukawa Road, Hastings.

Consideration was “withheld under section 9(2)(b)(ii) of the Official Information Act”.

The OIO states: “Trinity Hill Limited is in the business of growing wine grapes and producing, marketing and selling wine. The Applicant currently owns 24.99% of the securities in Trinity Hill Limited and is seeking to increase its interests in Trinity Hill Limited to 67.02%. The Applicant’s increased shareholding in Trinity Hill Limited will ensure a continuation of North American sales and distribution contacts”. Jamie Gray also reports on this deal in the New Zealand Herald (17/2/14).

“Trinity Hill, a mid-sized Hawkes Bay wine producer, said US winery owner Charles Banks, planned to take a controlling 67% stake in the company, subject to regulatory approvals. The purchase price was not disclosed. Charles Banks, through his company Terroir Selections, already has a 24.9% stake in Trinity Hill – another medium-sized winery producing around 60,000 cases of wine a year. Trinity Hill Chief Executive Michael Henley said Trinity Hill founders Robyn Wilson and John Hancock intended to remain as shareholders in the company, which is a prominent producer in Hawkes Bay.

“The company is Charles Banks’ first wine investment in New Zealand. His other wine holdings are in the United States and South Africa. Through Terroir Selections, Banks owns and distributes some of California’s highest profile wineries including Mayacamas, California’s oldest cabernet producer. He also owns leading South African winery Mulderbosch. ‘Trinity Hill is in a terrific position to prosper having consistently delivered high quality wines across its range’, Banks said in a statement. ‘We intend to invest the necessary capital to allow the continued improvement in quality’, he said.

“Trinity Hill’s Chairman and co-founder Robyn Wilson said the acquisition meant the company would be able to get its flagship wines the Homage and The Gimblett on to US wine lists. Wilson, a London-based New Zealander who owns London’s Bleeding Heart Restaurant Group, said Banks’ move would allow Trinity Hill to develop in more areas. Trinity Hill was established in 1993 and had its first vintage in 1997”.

Irish Expand Southland Dairy Empire

Premier Dairies Limited Balreask Trust, Thomas Clinton Family, Ireland (99.9%) and Sarah Clinton, Ireland (0.1%) received approval for the acquisition of a freehold interest in approximately 205.5 hectares of land at 27 Bridge Inn Road, Rakahouko, Invercargill (“the Property”).The vendor was Roslyn Bush Pastoral Limited Partnership New Zealand (100%); consideration was $9,600,000. The OIO states: “The Clinton Family (through the Applicant) has established a large dairy farm operation in Southland since 2000. The Applicant intends to use the Property as a standalone dairy platform complemented by nearby dairy run off land. The Applicant intends to develop and improve the Property to increase production”. Premier Dairies is owned by the Clinton family of Ireland and has been steadily buying-up Southland farms. For more information, refer to OIC/OIO Decisions written up for December 2000, May/June 2001, February 2002, September 2008, March and April 2009 and March and September 2012.

Craigmore Buys More

In two separate Craigmore Farming NZ Limited Partnership United Kingdom Public (32%), Hong Kong Public (14%), German Investors, Germany (10%) New Zealand Public (9.5%) and various overseas persons (34.5%) received approval for the acquisition of a freehold interest in approximately 40 hectares of land at 775 No1 Road, Te Puke (Kirimini Orchard) and secondly for the acquisition of a freehold interest in approximately 350ha of land located at 1181 Orton Rangitata Mouth Road (Clearview-Orton Farm)

The vendor of the first approval was M & R Paton Trust New Zealand (100%); The vendor of the second approval was M Clearview Rangitata Limited New Zealand (100%); consideration was again “withheld under section 9(2)(b)(ii) of the Official Information Act” for both transactions. With respect to the first approval the OIO states: “The Applicant is entering a joint venture with Trevelyan’s Pack & Cool Ltd to establish a kiwifruit business. The joint venture intends to carry out development to realise the full potential of Kirimini Orchard”.

With respect to the second approval the OIO states: “The Applicant intends to incorporate the Farm within its central Canterbury dairy operation. The Applicant intends to carry out extensive development to realise the full potential of the Land and associated farming operation”. See our previous commentaries in June 2012, February 2013, March 2013, November 2013, and almost every month in 2014 for background on Craigmore Farming and its other land purchases here.

Japanese Expand Millbrook Development

Millbrook Country Club Limited Gota Ishii, Japan (76%), Bonny Corporation, Japan (14.68%) and Millbrook Partners Japan, Japan (9.3%) received approval for the acquisition of a freehold interest in approximately 66.9 hectares of land at 902 Malaghans Road, Queenstown. The vendors were Philippa Anne Macauley (1/4 share), Ian Gordon Macauley (1/4 share), the Trustees of the Dalgleish Farm Trust Number 1 (1/4 share) and the Trustees of the Dalgleish Farm Trust Number 2 (1/4 share) The Trustees of the Dalgleish Farm Trust Number 1, New Zealand (25%), The Trustees of the Dalgleish Farm Trust Number 2, New Zealand (25%), Philippa Anne Macauley, New Zealand (25%) and Ian Gordon Macauley, New Zealand (25%); consideration was $7,000,000. The OIO states: “The Applicant is acquiring the land to extend the Millbrook Resort. The land will be developed into a residential subdivision and will provide the possibility to create additional holes for the resort’s golf course”. See our September 1996 commentary for details of the original establishment of the Millbrook Country Club.

Bulk Liquid Terminals Now 100% Overseas-Owned

Stolthaven Terminals BV Norway Public (43.5%), United Kingdom Public (30%), United States Public (20.1%), Belgium Public (2.7%), various (2.3%), Luxembourg Public (1.3%), and Bermuda Public (0.1%) received approval for the acquisition of rights or interests in the remaining 30% of the issued share capital of Stolt-Nielsen Australasia Holdings Pty Limited, which owns or controls:

a leasehold interest in approximately 2.5 hectares of land at Cnr Brigham & Hamer Streets, Freemans Bay, Auckland; and
a leasehold interest in approximately 0.6 hectares of land at 251 Foreshore Road, Island Harbour, Bluff; and
a leasehold interest in approximately 1.2 hectares of land at 25 Gabador Place, Mt Wellington, Auckland.

The vendor was Marstel Holdings Limited Catley (GS and AE), New Zealand (100%); consideration was again “withheld under section 9(2)(b)(ii) of the Official Information Act”. The OIO states: “Stolt-Nielsen Australasia Holdings Pty Limited operates bulk liquid terminals in New Zealand and Australia. The Applicant is acquiring the remaining 30% of the shares which is likely to result in it being more able to fund development projects in New Zealand”. See our May 2002 commentary for details of Marstel’s original interest in Gabador Place, Auckland, and our November 2011 commentary for details of Marstel gaining retrospective OIO consent for the leasehold interest in these properties.

Other November Decisions

Falvey Orchards LP Walter George Meyer, United States of America (30%), Bruce Douglas Allen, United States of America (30%), Christopher Linder Clark, United States of America (29.8%), New Zealand Public (5%), United States Public (5%) and Gregory DeCicio Clark, United States of America (0.2%) received approval for the acquisition of a freehold interest in approximately 14.0957 hectares of land at 476 Falvey Road, Levels, Timaru. The vendor was Tonemace Farming Company Limited Kevin Dixon Cahill, New Zealand (94%) and Megan Joan Samuel, New Zealand (6%); consideration was $500,000. The OIO states: “The Applicant is acquiring the land to develop into an apple orchard. The Applicant will grow ‘Honeycrisp’ variety apples for export, principally to the United States”. See our August 2014 commentary for details of two other Timaru orchards by some of the shareholders in Falvey.

Brunswick International Limited Brunswick Corporation, United States of America (100%) received retrospective approval for the acquisition of a leasehold interest in 0.4 hectares of land at 43 Ben Lomond Crescent, Pakuranga Heights, Auckland. The vendor was Ben Lomond Property Limited Christopher James Reeve, New Zealand (100%); lease payments are 2005 – $2,100,000 and 2009 – $2,364,360. The OIO states: “The Applicant has been granted retrospective consent to acquire leasehold interests in the land in 2005 and 2009 for the premises of its wholly-owned subsidiary Rayglass Sales and Marketing Limited (Rayglass). Rayglass is a designer and manufacturer of a large range of fibreglass power boats”. See our August 2007 commentary of Brunswick’s original purchase of Rayglass causing some embarrassment to the then Labour government.

Xindongyue Group NZ Limited De Sheng Zhao, China, People’s Republic of (100%) received approval for the acquisition of a freehold interest in approximately 8.1 hectares of land at 35c Wallace Drive, Clarks Beach, Waiau Pa, Auckland. The vendor was Anne Rachel Martin New Zealand (100%); consideration was $2,990,000. The OIO states: “The Applicant is acquiring a boutique winery and accommodation business. The Applicant intends to export wine to China, using both the vineyard’s own grapes and locally sourced grapes and bottled wine”.

And, finally for November, Millennium & Copthorne Hotels New Zealand Limited Millennium & Copthorne Hotels Plc, United Kingdom (70.2%) and the New Zealand Public (29.8%) received approval for the acquisition of rights or interests in 30% of the shares of Quantum Limited, the value of the assets of Quantum Limited and its 25% or more subsidiaries being greater than $100m. The vendor was Te Maori Lodges Limited Maori Trustee, New Zealand (100%); consideration was $14,250,000. The OIO states: “Millennium & Copthorne Hotels New Zealand Limited already owns 70% of Quantum Limited and wishes to purchase the remaining 30% from Te Maori Lodges Limited. Quantum Limited manages and owns hotels”.

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Christchurch.