Foreign investment in Aotearoa/New Zealand
Overseas Investment Office – June 2017 Decisions
Global Investors Buy Up Half Of 2Degrees
Tesbrit BV (Austria 65.43%; Switzerland 20.82%; Canada 7.62%; Belgium 3.69%; Luxembourg 1.57%; Germany 0.87%) has consent to acquire up to 49.9% of the securities of Two Degrees Mobile Ltd in one or more transactions from the Existing Shareholders of Two Degrees Mobile Ltd (USA 29.3%; Austria 17.4%; Canada 17.1%; Netherlands 13.3%; Cayman Islands 6.8%; Switzerland 5.5%; New Zealand 5.5%; various overseas 3.4%; UK 1.67%), for $551,596,000.
The OIO states that, as at 30 March 2017, Tesbrit owned 26.5% of the issued capital of Two Degrees. As a minority shareholder, Tesbrit does not control if and when investment opportunities, to subscribe in further shares in Two Degrees, may arise. Similarly, the timing of any proposed sale by a Two Degrees shareholder of its shares to a third party, triggering pre-emptive rights over those shares in favour of existing shareholders, including the Applicant, is outside the control of the Applicant. The applicant therefore wishes to have the flexibility to acquire up to 49.9% of the securities of Two Degrees as opportunities arise. The transaction satisfied the s.18 criteria the Overseas Investment Act 2005.
See also the OIO Decisions for November 2009, when Tesbrit got consent to increase its share of 2 Degrees, but apparently by not enough. See also January 2010 and December 2016 for other overseas ownership consents related to Two Degrees. On 4 September 2017 Two Degrees announced former Chorus CEO, Mark Ratcliff, had been appointed to represent Tesbrit on its Board.
Tesbrit BV is a financial holdings company registered in Amsterdam by Vistra Holdings (Netherlands) NV, which has 789 other registered subsidiaries (https://drimble.nl). Vistra is a global network whose Website describes it as providing tailored trust, fiduciary, fund and corporate services, based on extensive experience across finance, structuring, law, and accounting.
Suncorp Buys Up Rest Of Tower Insurance
Vero Insurance NZ Ltd (Australian public 74.1%; US public 10.4%; various overseas 10.3%; UK public 5.2%) has consent to acquire all the shares in Tower Ltd (NZ public 91.7%; various overseas 8.25% that it does not already own (being 80.01%), for $175 million. The OIO states that Vero is wholly-owned by Suncorp Group Ltd, an Australian company listed on the ASX that operates as a general insurer in New Zealand.
Vero states that the purchase will consolidate Vero and Suncorp Group’s position in the NZ general insurance market, particularly retail, and generate significant shareholder value through operating efficiencies and reinsurance and technology synergies, assisting the business to deliver competitive products and services. The transaction satisfied the s.18 criteria of the Overseas Investment Act 2005.
This acquisition means that Australian insurance giants IAG and Suncorp will together own around 76% of the NZ insurance industry, according to Interest.co.nz (22/2/17) which expected Vero might have to pay more than this OIO decision suggests.
Stuff reports that Suncorp’s offer went to the Commerce commission for clearance – it already operates the Vero and Asteron brands in this country, and is the majority owner of AA Insurance (Stuff, 27/6/17). According to Tower’s Website, as at 20 July 2017, Vero held 19.99% of Tower shares, with ACC the largest shareholder at 7.31%. See the backgrounder on the insurance industry in the 2015 Roger Award Judges Report.
Bathurst Buys Forest Land To Mine More Coal
Bathurst Resources Ltd (Singapore public 32%; Australian public 21.8%; Republic Investment Management Pte Ltd, Singapore 18.4%; NZ public 18.2%; Asian Dragon Acquisitions Ltd, Singapore 6.6%; various overseas 3%) has consent to acquire approximately 85 hectares at 66 Friskin Road, Tinkertown, Nightcaps, Southland, from Southland Plantation Forest Company of New Zealand Ltd (Oji Holdings Corporation, Japan 51%; ITOCHU Corporation, Japan 30%; Fuji Xerox Co Ltd, Japan 19%).
The OIO states that Bathurst Resources is a coal mining company operating exclusively in the South Island, with a head office in Wellington and employing over 110 people. Bathurst says it has spent more than $420 million on its New Zealand activities since establishment in 2010. This land is part of a wider, semi-mature forestry block and acquisition will enable Bathurst to continue mining along coal seams from its adjacent Coaldale mine, which is close to being economically exhausted. The opencast coal mine on the land will be known as the Black Diamond mine.
Bathurst says that developing the Black Diamond mine will retain a significant number of jobs, as well as creating and retaining indirect jobs. The transaction satisfied the s.16 criteria of the Overseas Investment Act 2005, with substantial and identifiable benefit to New Zealand under s.17(2)(a)(i) – Jobs; and Regulations 28(a) – Consequential benefits; 28(e) – Previous investments; 28(g) – Enhance the viability of other investments.
See the OIO Decisions of July 2012 on consent to buy the Nightcaps land which Bathurst was already mining by agreement with the landowners; May 2016 on Bathurst’s consent to purchase other land at Friskin Rd, Nightcaps; and March 2011 re another Nightcaps block as well as land at Denniston. A few days after the date of this OIO decision, the Southland Times (ST) reported the Black Diamond mine was “half complete” with the first pit area already open (ST, 5/6/17).
In October 2016 the Southland Times reported that the Southland District Council had given a 15 year resource consent to Bathurst for the Black Diamond mine, which is expected to extract 1.3 million tonnes of sub-bituminous coal from depths of 10-30 metres and process it at the existing Takitimu site. Bathurst planned to chip the forestry trees on site. Black Diamond is an extension of the Takitimu mine, which became exhausted of coal about four years ago, and the Coaldale mine, which was expected to be exhausted in about a year’s time, although land consent use for Takitimu doesn’t expire until 2020 and Coaldale in 2022.
Bathurst’s Craig Pilcher said the company expected to get about six years out of the Black Diamond mine. Coaldale and Takitimu mine are to be reinstated as farmland and the plan for Black Diamond is potentially reinstated as a 21-hectare lake – there had been a pond in the area (ST, 27/10/16).
Bathurst obtained the mining permit for Black Diamond in March 2015, for an additional 4.2 million tonnes from 658 hectares of land – considerably larger quantities that those above. This coal was sold predominantly to dairy processing plants in the South Island, said its company spokeswoman (ST, 12/3/15).
Bathurst’s Website says this area is one of the few remaining pockets of sub-bituminous coal in the region, which has been worked for over 140 years. Bathurst has also acquired a nearby New Brighton exploration permit, close to the Takitimu mine and connected by the same railway line. Bathurst now has opencast mines at Takitimu, Stockton, Canterbury, Buller, Denniston escarpment, Maramarua (near Miranda), and Rotowaru near Huntly in Waikato – its Website photos of opencast devastation are worth a look.
Listed on the ASX, Bathurst moved into New Zealand mining in 2011, expanded through a joint venture with Talley’s Energy in 2017 and picked up the Stockton, Rotowaru and Maramarua mines from publicly-owned Solid Energy. Around a third of its NZ coal supplies NZ Steel. Bathurst’s “respect for the environment” doesn’t address the climate change effects of burning their product. See the OIO Decisions of October 2010 re Bathurst’s purchase of L&M Coal Holdings project at Buller; December 2013 re land purchased at Buller as a nursery for replanting at Denniston; and October 2013 for land at Waimangaroa near Denniston for a coal handling facility.
For background on Bathurst see the 2016 Roger Award Judges’ Report at (it was a finalist) and an article by Jeanette Fitzsimons, “Westpac Finances Bathurst: Foreign Bank Funds Foreign Coal Miner To Destroy NZ Biodiversity & Global Climate” in Watchdog 134 January 2014 and a three-part article by Dennis Small, “Primary Production, Free Trade, Resource Conflict & Corporate Plunder” in Watchdogs 128, 129 and 130.
Caltex Australia Buys Gull NZ
Caltex Australia Ltd (Australian public 57%; US public 23.8%; European public 6.3%; Asian public 5.7%; UK 5.1%; various overseas 2.1%; NZ public 0.1%) has consent to acquire 100% of the ordinary shares in Gull NZ Ltd through CAL Group Holdings NZ Ltd; and the assets of Raeside NZ Ltd through Terminals NZ Ltd from Raeside NZ Ltd (Australia 100%) and Gull Petroleum (NZ) Ltd (Australia 100%), for $340 million.
The OIO states that Caltex Australia is an ASX-listed company, incorporated in Australia, that refines, imports, markets and distributes petroleum products. Although it currently has contracts with New Zealand-based entities, it does not currently have a business presence in New Zealand. It is seeking to purchase Gull Petroleum NZ Ltd, a NZ-registered company in the fuel retail industry.
Following completion, Caltex Australia plans to take over Gull’s 26 unmanned sites, 25 convenience stores, 22 supply sites and four marina supply sites, retaining Gull’s management, employees and brand, enlarging sites and expanding into new geographic areas. The transaction satisfied the s.18 criteria of the Overseas Investment Act 2005.
Since Gull entered the NZ market in the late 90s, it has been a low-cost challenger brand, says the AA with about 5% of the market (Stuff, 22/12/16). Its new owner Caltex does not currently have a business presence in NZ because, in 2015, Chevron NZ, with its Caltex and Challenge brands, was bought out by Z.
Caltex Australia has its own franchise network across Australia and also recently bought the Milemaker Petroleum Group with 45 Caltex-branded sites for $A90 million. Caltex reported a 17% increase in profit despite falling revenue, and is reported to be looking to regional expansion, with acquisition of Gull NZ the first step, possibly to be followed by Mobil Oil NZ (NZ Herald, 26/12/16). Cost challenging may not be the good news the AA suggests.
In 2016 Caltex Australia was accused of squeezing service station operators and workers with its franchise regime, and the Australian Fair Work Ombudsman was investigating minimum wage compliance. Stuff reported that of 655 outlets, many franchisees were making less than the average award rate, 45 were losing money and receiving State support and others were staying afloat by underpaying their staff (Stuff, 26/11/16).
See the OIO Decisions of November 2015 for Z buying Caltex from Chevron. Also see May 1996, April and August 1999, August 2000 and April 2016 for other OIC and OIO Decisions related to Caltex, and February 2016 for Gull.
Goodman Properties Buys Industrial Estate In Henderson
Goodman Nominee (NZ) Ltd (NZ public 67.4%; Australian public 25.6%; North American public 5.5%;
Asian public 0.8%; European public 0.7%) has consent to acquire 1.8286 hectares at 1-3 Selwood Road and 6-8, 10-12 The Concourse, Henderson, Auckland, and 2.1664 hectares at 5-9 and 11 Selwood Road, Henderson from Alloy Yachts International Ltd (NZ 100%) and Selwood Road Holdings Ltd (Russia 100%). Price withheld under s.9(2)(b)(ii) of the Official Information Act.
The OIO states that Goodman Nominee (NZ) is owned by the Goodman Property Trust, an NZX listed property trust, with investments in warehouse/distribution centres, industrial estates, business parks and office parks throughout New Zealand. Goodman Nominee is acquiring the land for redevelopment into an industrial estate, which is expected to deliver 21,500m2 of new industrial estate over three years, to accommodate technology manufacturing. The land was previously used for yacht construction but is currently vacant.
Goodman Nominee states that benefits include employment opportunities for construction workers and other contractors, and significant expenditure construction and development and that Goodman Property Trust has a significant New Zealand shareholder base and previously investments that benefited New Zealand. The transaction satisfied the s.16 criteria of the Overseas Investment Act 2005, with benefit to New Zealand under s.17(2)(a)(i) – Jobs, and Regulations 28(a) – Consequential benefits, 28(e) – Previous investments, and 28(j) – Oversight and participation by New Zealanders.
Goodman Nominee (NZ) Ltd was launched in March 2004 as Macquarie Goodman Nominee (NZ) Ltd. Its owner Goodman Property Trust is the biggest industrial property company in New Zealand, with a market capitalisation of around $1.6 billion, and properties valued at about $2.4b, and earnings of $134 million to March 2017 from rents, resales and developments. It is an externally managed unit trust, listed on the NZX.
The company is positioning itself to benefit from increasing demand for warehousing space as a result of e-commerce and online shopping (Stuff, 18/5/17). NBR reports that Goodman Property intends to spend $107million on six industrial developments in Auckland (NBR, 10/8/17). Its largest asset is Highbrook Industrial Park in East Tamaki, where it plans a new package of five developments totalling $44 billion (Scoop, 21/3/17).
Forsyth Barr reports that Goodman Property Trust is managed by, and has a close working relationship with, ASX listed Goodman Group, a global leader in industrial property ownership, management and development. In 2014 Goodman Property Trust formed a joint venture with Singaporean Sovereign Wealth Fund GIC, which has a mandate to hold $NZ500m of property in Auckland’s Viaduct Harbour.
See also the OIO Decisions for May 2001; April, May and October 2002; March and December 2003; March, May, June, July, August, October, November and December 2004; March, May and July 2005; March, May, June, November and December 2006; March, July, November and December 2007; April 2010, November 2011 (Viaduct); November 2012 (Highbrook); January (Viaduct) and December 2015.
T&G Buys Land For Apples In Havelock North
T&G Global Ltd (Germany 74%; PR China 20%; NZ 5.9%; various overseas 0.09%) has consent to lease seven hectares at 252 Thompson Road, Havelock North from John R Orton (NZ 100%). Price withheld under s.9(2)(b)(ii) of the Official Information Act. Apollo Apples (2014) Ltd, a 100% subsidiary of T&G Global, will acquire a leasehold interest in the land to develop an orchard. T&G states this is likely to result in increased export receipts, and royalties for Plant and Food Research, a Crown Research Institute.
The transaction satisfied the s.16 criteria of the Overseas Investment Act 2005, with substantial and identifiable benefit to New Zealand under s.17(2)(a)(i) – Jobs; s.17(2)(a)(iii) – Increased export receipts, s.17(2)(a)(iv) – Added market competition/productivity, and Regulations 28(a) – Consequential benefits, 28(e) – Previous investments; and 28(g) – Enhance the viability of other investments.
T&G Global was once Turners & Growers, New Zealand fruit growers, importers and auctioneers since the late 1890s. They started a similar company in Australia in the mid-1930s. Turners & Growers listed on the NZ Stock Exchange in 2004 and German company BayWa acquired 72.5% of its shares in 2012. It then acquired Delicia produce exporters in 2013 and Apollo Apples in 2014 and opened an office in China to support rapid growth there.
In 2015 it rebranded as T&G and its Delicia subsidiary as T&G Global, exporting fruit, vegetables, flowers and juice. See also our commentaries of December 1994, March 1997, March and August 2002, March 2012, June 2014, November 2014, October 2015, February 2016 and December 2016.
US Apple Orchardists Expand In South Canterbury
Kerrytown Road Orchards LP (Walter George Meyer, William Jeffrey Meyer, Robert Scott Meyer and Megan Meyer Tweedy, USA 25%; Dalton Blake Thomas and Pamela Lee Thomas, USA 25%; Bruce Douglas Allen and Julie Marie Allen, USA 25%; Christopher Linder Clark, USA 24.95%; Gregory DeCicio Clark, USA 0.15%) has consent to acquire approximately 18.68 hectares at 159 Levels Plain Road, RD4, Timaru from Clifdon Lewis Shortus (NZ 100%) for $760,000.
The OIO states that Kerrytown Road Orchards and related entities are establishing Honeycrisp apple orchards in South Canterbury, primarily for export to the USA, as they consider South Canterbury’s temperate climate ideal for growing this variety. They have already acquired and planted several properties in trees. This investment will increase the number of Honeycrisp apple trees in South Canterbury and further Kerrytown Road Orchard’s expansion plans.
The transaction satisfied the s.16 criteria of the Overseas Investment Act 2005, with substantial and identifiable benefit to New Zealand under s.17(2)(a)(i) – Jobs; s.17(2)(a)(iii) – Increased export receipts; s.17(2)(a)(v) – Additional investment for development purposes, and Regulations 28(e) – Previous investments.
See also the OIO Decisions for February 2016 in regard to other Timaru land purchased by Kerrytown Road Orchards, and for August 2014 for purchase of a Kerrytown Road property and other Timaru land by some of the same shareholders as MA Orchard Ltd and Honeycrisp NZ LLC respectively. NZ Farmer reports that Honeycrisp is a cold-climate apple, bred in Minnesota.
The original trees were brought into New Zealand under ENZA through a technical transfer with the US and Pomanjou International in France; since deregulation in 2001, orchardists can export directly to customers to meet gaps in supply in the Northern hemisphere (NZ Farmer, 29/1/16).
Chinese Buy Bowron Tannery, Christchurch
Rich Development Ltd (Heping Wang, PR China 50%; Hui Lyu, PR China 50%) has consent to acquire 100% of the shares of GL Bowron & Co Ltd which has a freehold interest in approximately 6.3 hectares of land at 2-12 Long St, Woolston, Christchurch, from Hatchi Sydney (Japanese public, 68.4%; various public 31.6%) for approximately $17,559,000. The consent also covers an internal restructure of the company group.
The OIO states that GL Bowron & Co Ltd is an overseas-owned company that operates a tannery business in Christchurch. Rich Development is a wholly-owned subsidiary of Henan Prosper Skins and Leather Enterprise Co. Ltd, a Chinese company that is one of the world’s largest tanner and processor of woolly skins. Rich Development states that it intends to expand the Bowron tannery business with significant supply chain efficiencies and economies of scale between Henan Prosper’s existing business and the Bowron tannery business, increasing throughput and exports over the next six years. The transaction satisfied the s.16 criteria of the Overseas Investment Act 2005, with benefit to New Zealand under s.17(2)(a)(i) – Jobs, s.17(2)(a)(ii) – New technology or business skills, s.17(2)(a)(iii) – Increased export receipts, s.17(2)(a)(iv) – Greater efficiency/productivity, s.17(2)(a)(v) – Additional investment for development purposes and s.17(2)(a)(vi) – Increased processing of primary products.
GL Bowron, founded in 1879 by Yorkshire master tanners, tans and finishes hides and skins making leather, booties, car covers, vests, and sheepskin rugs. Chris Hutching says the Japanese-owned business was under pressure from a strong New Zealand currency and tighter supply of sheepskins, some from the UK. The purchase price of $17.5m was below the $19.6m equity he calculated from accounts registered with the Companies Office (Stuff, 1/8/17).
Japanese Buy More Forestry Land In Northland
Summit Forests NZ Ltd (Sumitomo Corp, Japan 100%) has consent to acquire 328.3 hectares of land at Duncan Road Forestry Block, Takahue Survey District, Northland from David Leonard Marshall, Alexander John van Crasbeek and Mary-June van Crasbeek as trustees of the Braemar No. 1 Family Trust and Braemar No. 2 Family Trust (NZ 100%). Price withheld under s.9(2)(b))ii) of the Official Information Act.
The OIO stated that Summit Forests NZ is a Japanese-owned forestry company operating predominantly in Northland and is one of the largest forest owners in the region. It has a track record of supporting local sawmills – since entering the market in 2012, approximately 80% of the wood harvested from its Northland estate has been processed in New Zealand. Summit Forests states this investment will build on its existing forestry interests and combat a projected wood supply shortage for the years 2020 to 2023. The stated benefits include the forest becoming Forest Stewardship Council certified and increased processing of wood in the Northland region.
The transaction satisfied the s.16 criteria of the Overseas Investment Act 2005, with substantial and identifiable benefit to New Zealand under s.17(2)(a)(iv) – Greater productivity; s.17(2)(a)(vi) – Increased processing of primary products; s.17(2)(b) – Protection of indigenous vegetation/fauna’ s; and Regulations 28(a) – Consequential benefits; 28(e) – Previous investments; 28(f) – Advance significant Government policy or strategy and 28(g) – Enhance the viability of other investments.
Summit Forests is a New Zealand registered subsidiary company of Sumitomo Corporation Japan and Sumitomo Australia Pty Ltd. Sumitomo is an “integrated trading company” comprising 790 companies and 72,000 employees operating in over 65 countries. For other Summit Forests purchases in Northland, see the OIO Decisions of November 2012, September 2014, December 2015 and August 2016.
Latifundium Buys Wairarapa Forests
ZE Forest Ltd (Liechtenstein 100%) has to consent to acquire approximately 800.5 hectares, being approximately 613 hectares at 1470 Masterton Castlepoint Road, Tauweru, Wairarapa, and approximately 187.5 hectares at 645 Blairlogie-Langdale Road, Blairlogie, Wairarapa, from Kahumingi Forestry Partnership Custodial Co. Ltd (NZ 100%) and Flatspur Forestry Partnership Custodial Co. Ltd (NZ 100%). Price withheld under s.9(2)(b)(ii) of the Official Information Act.
The OIO states that ZE Forest has forestry interests in in Finland, Uruguay and New Zealand. The land is two small forestry blocks in the Wairarapa, which ZE Forest intends to harvest and replant. The investment is likely to lead to enhanced walking access and environmental protection measures on the land, including legal protection. ZE Forest’s intended ecological programme is also likely to generate a number of job opportunities of limited duration. ZE Forest’s majority beneficial interest in the Oban Forest, which adjoins one of the forestry blocks, is also likely to lead to some efficiency in harvesting that forest in conjunction with Oban Forest.
ZE Forest’s previous investments which have been or are of benefit to New Zealand include a New Zealand subsidiary of Ivoclar Vivident, which employs over 50 fulltime staff. The transaction satisfied the s.16 criteria of the Overseas Investment Act 2005, with substantial and identifiable benefit to New Zealand under s.17(2)(a)(i) – Jobs; s.17(2)(a)(iv) –Greater efficiency or productivity, s.17(2)(b) – Indigenous vegetation/fauna, s.17(2)(e) – Walking access and Regulation, 28(e) – Previous investments.
ZE Forest Ltd was registered in NZ on 18 January 2017, described as “forestry ownership or management (excluding field operations)” and owned by a single (unnamed) entity. Its active director from the same date is Maximilian Georg Johannes Maria Graf von Maldeghem. According to North Data, Maximilian von Maldegham is part of the German investment group Latifundium Komplementär GmbH and, Google suggests, a Hapsburg count.
In 2013 Latifundium, with Maldeghem as spokesperson, advised on, and subsequently managed, forests purchased by a company called ZE Metsä Oy from Finnish timber and paper company UPM. For other Latifundium estates in NZ, see the OIO Decisions of February 2014. Dental technology company Ivoclar Vivadent Ltd is a subsidiary of Ivoclar Vivadent AG of Schaan, Liechtenstein.
Swiss Capital Moves To The East Coast
Monte Capital Ltd (Christian Welte, Switzerland 100%) has consent to acquire approximately 1,583 hectares at 558 Te Kumi Road, Waikura, Gisborne, from Karen Ann McLanachan (NZ 100%), and for Monte Farm & Forest Ltd to lease the land from Monte Capital. Price is $7 million. The OIO states that Monte Capital intends to acquire Te Kumi Station and lease the land to Monte Farm & Forest Limited to farm deer, as well as the present sheep and beef.
It intends to plant mānuka and pine on parts of the land to control erosion and as commercial forestry. It says the investment is likely to lead to enhanced walking access along three waterways that border Te Kumi Station, environmental protection including predator control, and the introduction of development capital. It will create a small number of jobs and introducing deer farming is likely to result in additional processing in NZ and export receipts. Monte Capital has existing investments in New Zealand in sheep and beef farming and forestry, including on land adjoining Te Kumi Station.
The transaction satisfied the s.16 criteria of the Overseas Investment Act 2005, with substantial and identifiable benefit to New Zealand under s.17(2)(a)(i) – Jobs; s.17(2)(a)(iii) – Increased export receipts; s.17(2)(a)(iv) –Greater efficiency or productivity; s.17(2)(a)(v) – Additional investment for development purposes; s.17(2)(a)(vi) – Increased processing of primary products; s.17(2)(b) – Indigenous vegetation/fauna; s.17(2)(e) – Walking access; s.17(2)(f) – Offer to sell riverbed to the Crown, and Regulations 28(e) – Previous investments.
Monte Capital Ltd was registered in Gisborne on 28 May 2010. On 18 January 2017 Waikura Logging Ltd was registered at Gisborne with Christian Welte and Moana Hape Mato as active directors and 300,000 shares held by Monte Farm & Forest Limited. Waikura comprises beef and sheep farming, logging, hunting and honey in the East Coast back blocks. For Monte Capital Ltd consents for forestry land at Lottin Point (East Cape) and inland from Opotiki respectively, see the OIO Decisions for February 2011 and May 2014.
Australian Restructures Whatatutu Farmland, Gisborne
Te Hau Station Ltd (Phillip Maxwell Colebatch, Australia 100%) has consent to acquire a freehold interest in approximately 30 hectares of land at “various locations” at Whatatutu, Gisborne; and a freehold or leasehold interest in approximately nine hectares at Whatatutu, Gisborne; and a leasehold interest in approximately 16 hectares at Whatatutu, Gisborne, from “various New Zealand land owners (New Zealand 100%)”. Price withheld under s.9(2)(b)(ii) of the Official Information Act.
The OIO states that Te Hau Station Ltd’s current interests in New Zealand include Te Hau Station (2,307 hectares), Wheterua Station (1,037 hectares) and other land in Whatatutu (234 hectares). Te Hau Station’s holding company, Antipodean Lands Ltd, also owns another subsidiary company, Moanui Farm Ltd, which owns and operates Moanui Station (797 hectares). Te Hau Station is acquiring land to replace land that it is selling to Riversun Nursery Ltd, one of New Zealand’s leading suppliers of grafted grapevines.
Riversun operates a field nursery in Whatatutu and its business is highly susceptible to bad weather. Due to recent weather events, it wants to move all its nursery production to land that is frost and hail protected, and intensively sheltered and drained. The adjoining land owned by Te Hau Station is suitable. Riversun is currently leasing it but wants to purchase it to undertake development. Te Hau Station does not wish to sell this land to Riversun unless it can replace it with other suitable land in order to continue its farming operations in Whatatutu.
The transaction satisfied the s.16 criteria of the Overseas Investment Act 2005, with substantial and identifiable benefit to New Zealand under s.17(2)(a)(i) – Jobs; s.17(2)(f) – Offer to sell seabed/foreshore/riverbed to the Crown; and Regulations 28(a) – Consequential benefits; 28(e) – Previous investments; 28(g) – Enhance the viability of other investments. The OIO statement seems very inadequate on location and vendors. Whatatutu is a tiny place in the backblocks between Gisborne and Opotiki – I don’t imagine there’d be a lot of seabed and foreshore for Colebach to claim ownership of.
See the OIO Decisions of May 2008 re Colebatch’s purchase of Te Hau and Moanui Stations, September 2011 for a further 2,324.5 ha. and May 2015 re purchase of Wheturau Station, all at Whatatutu. The Wall Street Journal identifies Colebatch as a director of Land Lease Group, a property and infrastructure development company, and former director of an international range of insurance companies.
Mangakino Heifer Farm Restructures
AICO Ltd and AICO Farming Ltd (Josef Gunter Unger, Austria 25%; Hans Peter Ernst Hirt, Switzerland 25%; Roger Alexander Hirt, Switzerland 25%; Kurt Walter Bucher, NZ 12.5%; Katharina Bucher, NZ 12.5%) have consent for AICO Ltd’s acquisition of approximately 189.5 hectares at 313 Pakonui Road, RD 1, Mangakino, from Kurt Walter Bucher and Katharina Bucher (NZ 100%) for $3.6 million, and AICO Farming Ltd’s lease of the land.
The OIO states that the land is currently operated as a heifer rearing farm. The investment will result in significant upgrades to farm infrastructure and machinery, to support a further 200 heifers. The upgrades will require a new full time equivalent position and are likely to improve productivity and efficiency.
The transaction satisfied the s.16 criteria of the Overseas Investment Act 2005, with substantial and identifiable benefit to New Zealand under s.17(2)(a)(i) – Jobs; s.17(2)(a)(iv) – Greater efficiency/ productivity, s.17(2)(a)(v) – Additional investment for development purposes, and Regulations 28(j) – Oversight and participation by New Zealanders. Both companies were registered in November 2016 with Kurt Walter Bucher, Matthias Josef Unger and Hans Peter Ernst Hirt as active directors.
NZ Lifestyles
Davenport Orchards Ltd (Robert Andrew Davenport, UK 100%) has consent to acquire approximately six hectares land at 375 Wainui South Road, Whakamarama, Tauranga, from Timothy John Mathews, Sally Anne Mathews and Jeanne Marie Bright as trustees of the Shaba Trust (NZ 100%) for $1,250,000. The OIO states that Mr Davenport is currently living in New Zealand and intends to reside here indefinitely. The transaction satisfied the s. 16(1)(e)(i) criterion of the Overseas Investment Act 2005. Davenport Orchards Ltd was registered in August 2016, at Aongatete near Katikati and described as growing avocados – see the OIO consent for this property in December 2015.
Montpier Investments Pty Ltd (Philip and Kristen Richards family, Australia 100%) has consent to acquire Lot 20 at Closeburn Station, Queenstown, being approximately 0.4491 hectares together with a 1/27 undivided interest in approximately 1,003 of land at Closeburn Station, from David Salman and Walter Jared Frost (Indonesia 100%), for $3 million.
The OIO states that Closeburn Station is a rural subdivision of 27 residential lots, with each resident also owning a 1/27 interest in a beef and sheep, supported by annual levies on owners. Closeburn Station was significantly developed in the late 1990s, improving environmental standards. Montpier Investments plans to construct a residence for use while in New Zealand overseeing family business interests in a waste management operation with a significant number of employees.
They state they will support to regional efforts to control the spread of wilding pines which threaten native beech forests and tussock in the Queenstown area, including on Closeburn Station. The transaction satisfied the s.16 of the Overseas Investment Act 2005, with substantial and identifiable benefit to New Zealand under s.28(a) – Consequential benefits and s.28(e) – Previous investments.
The Otago Daily Times (ODT) reports that the couple are building a $7m home that will serve as a base for expanding their waste management business in NZ. JJ Richards & Sons is the largest privately-owned waste management business in Australia. The New Zealand branch was set up in 2001, employs 103 people and turns over $20m a year. The couple has a cattle breeding ranch in Australia.
Montpier’s donation to the Wakatipu Wilding Conifer Control Group will be $25,000 with an inflation adjusted annual contribution of $4,300 (ODT, 1/9/17). Mountain Scene (MS, Queenstown) reports that, earlier in 2017, NZ’s richest person, Graeme Hart, bought a house on Closeburn Station for $24m, followed by a neighbouring property in August (MS, 31/8/17).
Hermann Tobias Hagenmeyer (Germany 100%) has consent to acquire approximately 508.5 hectares at 79 Beach Road and 468 Tangoio Settlement Road, Tangoio, Hawke’s Bay from Kirikiri Part, LLC (Benjamin P Paulus, USA 14.3%; Lia G Beldin, USA 14.3%; Ana Sophia Augustenborg, USA 14.3%; Isabella Bingen, USA 14.3%; Michael J Paulus, USA 14.3%; Clinton J Paulus, USA 14.37%; Andrew E Beldin, USA 14.3%), for $12 million.
The OIO states that Hagermeyer is a German citizen and former CEO and owner of Getrag Corporation, the world’s largest supplier of transmission systems for cars and commercial vehicles. The property is a lifestyle property with a eucalyptus forest and small areas of pinus radiata. Hagermeyer intends the purchase as a private lifestyle property and will retain a forest management company for the forestry.
He states that the purchase is likely to have environmental benefits, including predator control, approximately 15 hectares of new native planting, protection of archaeological sites, and funding for native plant regeneration on a neighbouring sand dune system. He also intends to employ a permanent caretaker and to undertake building projects, including a new guest house, creating job opportunities for contractors.
The transaction satisfied the s.16 criteria of the Overseas Investment Act 2005, with substantial and identifiable benefit to New Zealand under s.17(2)(a)(i) – Jobs; 17(2)(a)(v) – Additional investment for development purposes; 17(2)(d) – Historic heritage; and under Regulations 28(a) – Consequential benefits and 28(f) – Advance significant Government policy or strategy.
Getrrag’s website says that it was Tobias Hagermeyer’s father, Herman, who, in 1935, took over the Pfeiffer works in Ludwigsburg, Baden-Württemberg, Germany to found Getrag. It now has bases across Europe, the US Mexico, India and China, but not Australasia. In 2016 Getrag was acquired by global leader Magna, which is listed on the Toronto and New York Stock Exchanges.
Andre and Malgorzata Calantzopoulos (Switzerland 100%) have consent to acquire approximately 18 hectares at 163 Opito Bay Road, Kerikeri from Jenifer Eva Easton and Roderick Roy MacCarthy as Executors of the Estate of Eva Elizabeth MacCarthy (NZ 100%). Price withheld under s.9(2)(b)(ii) of the Official Information Act.
The OIO states that the Calantzopoulos plan to build a home where they can stay when visiting the 316 ha. beef and sheep farm that they are acquiring at 489 Pungaere Road, Waipapa (see May 2017 above, subheading “Cigarettes Transnational CEO Buys Northland Organic Farm”. Andre Calantzopoulos is Chief Executive Officer of Philip Morris International).
They have committed to protecting indigenous vegetation and fauna with a QEII covenant for two significant areas of indigenous forest, as well as sponsoring a new kiwi protection programme on the Kerikeri peninsula. These proposals, which relate to the farm property, will advance government policies for Predator Free NZ 2050 and the Kiwi Recovery Plan, and are likely to result a small number of short term jobs. They will also will work with the Walking Access Commission to fund new public access to two bays near the land.
The transaction satisfied the s.16 criteria of the Overseas Investment Act 2005, with substantial and identifiable benefit to New Zealand under s.17(2)(a)(i) – Jobs; s.17(2)(b) – Indigenous vegetation/fauna; s.17(2)(e) – Walking access, and Regulations 28(a) – Consequential benefits and 28(f) – Advance significant Government policy or strategy.
Campaign Against Foreign Control of Aotearoa,
P.O. Box 2258
Christchurch.