Foreign investment in Aotearoa/New Zealand

Overseas Investment Office – December 2015 Decisions

Chinese Buy 3,600 Hectares Of Forestry Blocks

China National Forest Products Corporation,Government of the People’s Republic of China (100%), received approval for an overseas investment in sensitive land, being CFPC (New Zealand) Co Limited’s acquisition of:

a freehold interest in approximately 1,668.2 hectares of land at Mahoe Estate in the Taupo District; and
a freehold interest in approximately 1,921.7 hectares of land at Madaket Estate in the Whangarei District.

Approval was also received for an overseas investment in significant business assets, being CFPC (New Zealand) Co Limited’s acquisition of property in New Zealand used in carrying on business in New Zealand for consideration exceeding $100m, that property being various North Island forestry estates known as the Mahoe Estate and the Madaket Estate, including the freehold land, Crown Forestry Licences and other associated assets, including sensitive land.

The vendor was RII New Zealand Properties II, LLC and GFP New Zealand Properties III, LLC,Australia (41.7%), United Kingdom (28.1%), United States of America (25.2%) and various (5%): consideration was “withheld under section 9(2)(b)(ii) of the Official Information Act”. The OIO states: “The Applicant plans to increase the average harvest volume from the forest estates which is likely to result in increased efficiency. The proportion of logs exported from the forest estates is also likely to increase resulting in an increase in export receipts”.

“The Applicant plans to manage the forest estates in accordance with the FSC (Forest Stewardship Council) principles which is likely to result in environmental and other benefits. The Applicant has also agreed to permit walking access across the forest estates where reasonable”. See our October 2013 commentary for details of the Chinese government’s purchase of 14,000 hectares of North Island Forests from the NZ Superannuation Fund.

Americans Take Controlling Interest In Five Southland Dairy Farms

In separate decisions Dairy Farms NZ Limited,United States of America (now 55%), various overseas persons (5%), New Zealand Public (40%) and EGI-NZ Dairy, LLC,United States of America (100%), received approval for an overseas investments in sensitive land, being:

the acquisition by Dairy Farms NZ Limited of a freehold interest in approximately 1,206ha of land at Otapiri, Southland (the “Five Farms”: Hillend I, Hillend II, Southern Sights I, Southern Sights II, Matai), and
the acquisition by EGI-NZ Dairy, LLC of up to 55% of the shares in Dairy Farms NZ Limited.

The vendor was Southern Sights Limited New Zealand (100%): consideration was $47,150,000 (for the Five Farms).

The OIO states: “Dairy Farms NZ Limited (DFL) intends to develop the ‘Five Farms’ to maximise milk production. Short term development is expected to result in a significant increase in cow numbers and the amount of milk solids produced. Longer term, DFL intends to list on the NZX in order to attract an investor base representative of the NZ retail and institutional investor community. EGI-NZ Dairy, LLC is increasing its shareholding in DFL from 49.51% up to 55% in order to fund the acquisition of the Five Farms”. See our June 2014 commentary for details of this buyer’s previous purchase of a large Canterbury dairy farm.

Chinese Buy Oamaru’s Lean Meats

NZ Binxi (Oamaru) Foods Limited,Zhiyun He, China, People’s Republic of (57.7%), Qiaogang Zhang, China, People’s Republic of (24.7%) and various, China, People’s Republic of (17.6%), received approval for the acquisition of rights or interests in up to 100% of the issued share capital of Lean Meats Oamaru Limited which owns or controls a freehold interest in approximately seven hectares of land at 7 Redcastle Road, Oamaru.

The vendor was Lean Meats Limited New Zealand (100%); consideration was “withheld under section 9(2)(b)(ii) of the Official Information Act”. The OIO states: “The land contains a meat processing plant. The Applicant plans to introduce additional investment to upgrade the plant and install new equipment. This will allow it to significantly increase beef processing at the plant. The Applicant also plans to increase exports to China through its supply networks”.

Chinese To Establish Waihaha Sheep Milk Farm

In two separate decisions, Super Organic Dairy Company Limited, Liang Chen, China, People’s Republic of (40%), Liwu Zhou, China, People’s Republic of (36%), Binlan Dang, China, People’s Republic of (20%) XiaoFang Han, China, People’s Republic of (4%) and Southern Cross Dairy Sheep Technology Limited, Liang Chen, China, People’s Republic of (28%), Liwu Zhou, China, People’s Republic of (25.2%), Peter Thomas Gatley, New Zealand (15%), Jacob Abraham Poulus Chardon, The Netherlands (15%), Binlan Dang, China, People’s Republic of (14%) and XiaoFang Han, China, People’s Republic of (2.8%), received approval for an overseas investment in sensitive land, being: Super Organic Dairy Company Limited’s (“Super Organic”) acquisition of a freehold interest in approximately 770.8 hectares of land at Waikino Station, Te Putu Road, Waihaha; and Southern Cross Dairy Sheep Technology Limited’s (“Southern Cross”) acquisition of a leasehold interest in approximately 770.8 hectares of land at Waikino Station, Te Putu Road, Waihaha.

The vendors were Christine Anne Phillips and Michael John Phillips as trustees of the Royden Trust,New Zealand (100%); consideration was $11,680,000 for the land purchase and $48,000 for the 2016 rental. The OIO states: “Super Organic has been established to invest in sheep milk related ventures in New Zealand. Southern Cross, owned by Super Organic and two key New Zealand management personnel, will lease the land from Super Organic”.

“The farm on the land will become a base for a genetic improvement programme for dairy sheep. The farm will also be used as a demonstration farm to provide New Zealand farmers with a template to carry out their own farm conversions. Most of the sheep milk products produced from the land are likely to be exported to China”. Readers may recall this group of Chinese investors taking an interest in another sheep milk farm in Kuratau last month.

Daiken Takes 100% Of Ashley Timber Plant

Daiken Corporation,Japanese Public (94.3%), and various overseas persons (5.7%), received approval for the acquisition of rights or interests in 100% of the shares of Daiken New Zealand Limited which owns or controls a freehold interest in approximately 159ha of land at Upper Sefton Road, Ashley, Canterbury. The vendor was ITOCHU Corporation Japan (100%): consideration was not stated.

The OIO states: “The Applicant and the Vendor are currently joint shareholders in Daiken New Zealand Limited (DNZ), which operates a timber processing plant located on the land. The Applicant will acquire the Vendor’s 14.9% shareholding in order to take sole ownership of DNZ. The Applicant, through DNZ, intends to increase production by investing significant development capital to upgrade the processing plant”. See our January 2009 and March 2012 commentaries for details of Daiken’s purchase of the original 85% of this site/plant.

Americans Now Take An Interest In Wakefield Hospital

MTGRP LLC,United States Public (76.2%), various overseas persons (18%), and United Kingdom Public (5.8%), received approval for the acquisition of rights or interests in 39.5% of the units in each of EHPO Trust and EHPP Trust, which, at the time of the investment, will own or control:
– a freehold interest in approximately 0.9 hectares of land at Boulcott Hospital, Lower Hutt, Wellington.

The vendor was the EHPO Trust and EHPP Trust,Australia (100%): consideration was “withheld under section 9(2)(b)(ii) of the Official Information Act”. The OIO states: “The Applicant’s investment in the EHPO Trust and EHPP Trust, will fund the acquisition by Evolution Healthcare (NZ) Pty Limited of rights or interests in 100% of the shares in Austron Limited, which owns or controls the following sensitive land:

a freehold interest in approximately 2.2 hectares of land at Bowen Hospital, Crofton Downs, Wellington; and
a freehold interest in approximately 1.5 hectares of land at Royston Hospital, Hawkes Bay”.

“The Applicant’s investment in the Trusts will also enable Evolution Healthcare (NZ) Pty Limited to undertake significant developments of Wakefield Hospital and Royston Hospital… The Applicant’s investment in the EHPO Trust and EHPP Trust will enable the Trusts’ subsidiary, Evolution Healthcare (NZ) Pty Limited to acquire and then undertake significant developments of Wakefield Hospital and Royston Hospital…”

Japan’s Sumitomo Buys Northland Forests

Summit Forests New Zealand Limited,Sumitomo Corporation, Japan (100%), received approval for the acquisition of a freehold interest in approximately:

559.1 hectares of land at Otangaroa Forest Estate; and
38.8 hectares of land at Fern Flat Forest Estate; and
121.5 hectares of land at Dutton Road Forest Estate; and
eight hectares of land at Waiotehue Road Forest Estate; and
24.1 hectares of land at Carman’s Block Forest Estate; and
26.1 hectares of land at Humphries Road Forest Estate.

The vendor was Asian Power International (NZ) Limited,Lau Siu Tuen Lucy Chan, Hong Kong (SAR) (100%), and Penzance Developments Limited,Lau Siu Tuen Lucy Chan, Hong Kong (SAR) (100%): consideration was “withheld under section 9(2)(b)(ii) of the Official Information Act”. The OIO states: “The Applicant intends to maintain and develop the forests on the relevant land in conjunction with their existing Northland forestry estates, in order to produce timber for domestic processing and export markets (with the main focus being increased supply to Northland sawmills)”.

“A new export coordinator position will be created, public walking access will be improved and the Applicant will extend its Forest Stewardship Council certification over the land. The Applicant will also contribute $15,000 in sponsorship to community projects”. See our September 2014 commentary for details of Sumitomo’s last forestry purchase here. $15,000 from a transnational corporation the size of Sumitomo! That’s on a par with some blankets and beads for the natives. Ed.

Lord Palumbo Plans Musicians’ Retreat For Waiheke

James Rudolph Baron Palumbo of Southwark (Lord Palumbo),United Kingdom (100%), received approval for the acquisition of a freehold interest in approximately 27 hectares of land at 609A & 609B Orapiu Road, Waiheke Island. The vendor was Casterton No 1 Trust and Casterton No 2 Trust (1/2 share),New Zealand (100%) and Collow Family Trust (1/2 share),New Zealand (100%): consideration was $7,300,000.

The OIO states: “The Applicant plans to acquire the land for the purpose of developing an artists’ retreat for musicians. As part of the development the Applicant also intends to restore and enhance the indigenous vegetation on the land”. Lord Palumbo is the founder of Ministry of Sound. The multimedia entertainment business, which began with a London nightclub, is also one of the biggest independent record labels in the world.

In June 2018 Lord Palumbo sold this $7 million property back to New Zealanders.

Other December Decisions

Wynyard Precinct No 6 Limited, Singapore (49%), New Zealand (39.9%), Australia (10.1%), and various overseas persons (1%), received approval for the acquisition of a leasehold interest in approximately 0.43 hectares of land at Gaunt and Daldy Streets, Auckland. The vendor was Delcon Holdings (No 15) Limited, various overseas persons (75%), and New Zealand Public (25%): consideration was $2,992,825.

The OIO states: “The investment is a joint venture between Reco Aotearoa Private Limited and the Goodman Property Trust. The Applicant will acquire a leasehold interest in a section of land located in the Wynyard Precinct. A commercial office building is to be constructed on the land”. This deal is part of a much larger development of the immediate neighbourhood, reported in our January 2015 commentary.

Changda International New Zealand Limited,China Public (42%), Chuanqing Wang, China, People’s Republic of (18%), Pengqiang Xu, China, People’s Republic of (12%), Jinxing Xue, China, People’s Republic of (10%), Jiuzhou Zhu, China, People’s Republic of (6%), Yin Wang, China, People’s Republic of (4%), Youming Yang, China, People’s Republic of (2%), Zhigang Xue, China, People’s Republic of (2%), Lijie Qu, China, People’s Republic of (2%) and Chuanxiao Wang, China, People’s Republic of (2%) received approval for the acquisition of a freehold interest in 1.7 hectares of land at 207 West Hoe Heights, Orewa, Auckland.

The vendors were Andrew Ross MacLennan, Pamela Anne MacLennan and MacLennan Trustee Services Limited as trustees of the MacLennan Family Trust,New Zealand (100%): consideration was $2,280,000. The OIO states: “The Applicant will use the Land to support its development of residential housing and complementary facilities at Sunnyheights Road, Orewa, Auckland. The main purpose for the acquisition is to create more effective access within the development by constructing a road across the land that connects its east and west sections”. See our June 2014 commentary for details of Changda’s original purchase here.

Robert Andrew Davenport,United Kingdom (100%), received approval for the acquisition of a freehold interest in approximately 3.5 hectares of land at 443 Matahui Road, Aongatete, Tauranga. The vendor was P&N Developments Limited,Patrick Robert Michael Seuren, New Zealand (50%) and Nicola Helen Seuren, New Zealand (50%); consideration was $2,803,975. The OIO states: “The Applicant intends to migrate to New Zealand with his immediate family and reside in New Zealand indefinitely”.

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