Foreign investment in Aotearoa/New Zealand

Overseas Investment Office – May 2019 Decisions

Minister Sage Blocks OceanaGold Purchase Of Unnamed Land In Waihi…

OceanaGold (NZ) Ltd(US Public 46%; UK Public 23%; Australian Public 10%; European Public 9%; Canada Public 9%; Asian Public 3%) failed to obtain consent to acquire sensitive land at Waihi, details of which were withheld under s.9(2) (b((ii) of the Official Information Act. The OIO stated that Oceana Gold owns and operates the Martha Mine (open pit) and Moonlight, Favona, Trio, Correnso and Slevin (underground) Mines at Waihi. It wished to acquire this land for purposes incidental to mining activities.

For consent to be granted, Ministers needed to be satisfied that the proposed investment would result in substantial and identifiable benefit to New Zealand. Associate Minister of Finance, David Clark, was satisfied that the investment would result in substantial and identifiable benefit to New Zealand, which is a criterion for consent under the Overseas Investment Act. However, Minister for Land Information, Eugenie Sage, was not satisfied. The Overseas Investment Act provides for two Ministers to each independently decide an application like this. Consent is only granted if both Ministers grant consent.

…But OIO Gives Oceana Consent On Four Residential Sections…

OceanaGold (NZ) Ltd (US Public 49%; Canada Public 19%; UK Public 9%; Australian Public 9%; European Public 8%; Germany 4%; various 2%) received consent to acquire four residential properties totalling 1.1431 hectare in Waihi. Details of location and price were withheld under s.9.(2) (b((ii) of the Official Information Act.

The OIO states that Oceana Gold owns and operates the Martha Mine (open pit) and Moonlight, Favona, Trio, Correnso and Slevin (underground) Mines at Waihi. It is a significant employer in the Waihi region and has undertaken a number of previous investments that are of benefit to New Zealand. The land is residential land being acquired for purposes incidental to mining activities.

The OIO is satisfied that the appropriate residential land outcomes are the incidental residential use outcome and the non-residential use outcome and that the overseas investment satisfies the requirements of those outcomes. Oceana has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character, and Oceana has demonstrated financial commitment to the investment. The OIO is satisfied that the overseas investment is likely to benefit New Zealand.

…Then Ministers Change Their Minds About The Declined Oceana Application

Oceana renewed its declined application above and, with a change of Ministers (both Labour) was successful. This time the Minister for Finance, Grant Robertson, and Associate Minister of Finance, David Parker, considered the investment will benefit New Zealand because of retention of about 340 fulltime jobs and exports of $2 billion over nine years. (Green Minister) Sage had argued the expansion of gold mining at Waihi is inherently unsustainable, will increase emissions, and will provide only moderate employment benefits relative to winding down the operation and remediating the site.

The Prime Minister downplayed any differences in Party positions on this (NZ Herald 8/10/19). Yeah right. See media statement by Ministers Robertson and Parker, 8/10/19. See more in October 2019 commentary.

OceanaGold describes itself as a transnational gold producer with global operating, development and exploration experience, listed on the Australian and Toronto exchanges (86% institutional holdings). It has a strategic investment in TSXV-listed Gold Standard Ventures. Its HQ is in Melbourne, with departmental offices in Denver, Brisbane and Singapore. It has mining operations in New Zealand, Luzon Island in the Philippines (merger with Climax Mining in 2006) and South Carolina, and is commencing new projects in Nevada and Argentina.

OceanaGold evolved out of the gold production assets of Gold & Resource Developments Ltd in 2003 with assets in the South Island. In 2015, OceanaGold acquired the Waihi Gold Mine in the North Island as well as taking ownership of the Haile Gold Mine through the takeover of Romarco Minerals Inc. OceanaGold Corporation was delisted from the NZX on 30 November 2016.

OceanaGold acquired the Waihi Gold Mine from Newmont Mining in October 2015 for $132.3 million (see October and November 2015 commentaries). This is now an underground operation. Its Macraes operation in Otago consists of open pit and underground operations. In 2007 OceanaGold opened a new opencast gold mining pit in Reefton goldfield, at old Globe-Progress workings which had ceased gold mining in 1951 (Te Ara), and was closed and restored by Oceana in 2017.

Oceana is currently seeking resource consent from the Waitaki District Council to expand the existing gold mining activity at Coronation North Mine. In 2019 it received permits for its Martha Underground Expansion project at Waihi, to which these land acquisitions relate. Its Website says this could add ten years to the life of the mine. Between August 2017 and April 2018, it completed approximately 16,200 metres of drilling from two underground drill drives, which is 30% of the exploration to test the Martha Underground target. The drill programme continued throughout 2019.

It is unclear why one of the current property acquisitions is acceptable and the other not of benefit to New Zealand. We are blocked from knowing which properties these are. And what is meant by “non-residential purposes incidental to mining” or a “non-residential use outcome”? Not having houses fall into a large hole? See June 2002 commentary for the Waihi Gold Company buying 13 properties because of mine shaft collapses. See also commentaries April 2011 and April 2009 (Otago).

See also articles on Coromandel mining by Augusta Macassey-Pickard (Watchdog 148, August 2018) and Catherine Delahunty (Watchdog 139, August 2015, ). Also see the Scoop report (23/1/19) that Oceana is starting exploratory drilling at Pauanui and Opoutere.

In April 2016 Stuff attributed OceanaGold’s expansion to lower fuel and exchange costs meaning a profit of $200 from every ounce of New Zealand gold (Tim Fulton, 4/4/16).

Port Blakely Buys Clutha Forests

Port Blakely Ltd (Eddy Family, USA 100%) has consent to acquire approximately 2,996 hectares known as “the Clutha Forests” in Otago from Forestry Fund 9 NZ Ltd (USA 59.8%; UK 27.2%; Cayman Islands 8.7%; Canada 3.9%; British Virgin Islands 0.4%). Price withheld under s.9(2)(b)(ii) of the Official Information Act. The land comprises eight forest blocks:

655 ha. at Waitahuna Gully Road, Lawrence (Waitahuna Forest);
434 ha. at Falla Burn Road, Milton Area (Falla Burn Forest);
354 ha. at Nugget Stream Road, Milton Area (Nugget Stream Forest);
209 ha. at Glenore Cemetery Road, Glenore (Glenore Forest);
190 ha. at 1 Takitakitoa Road, Henley (Christies Gully Forest);
229 ha. at 752 Big Stone Road, Brighton (Moeraki Bush Forest);
185 ha. at 379 McIntosh Road, Brighton (Scroggs Hill Forest); and
740 ha. of land at Wetherstons Road, Lawrence (Lawrence Forest).

The OIO states that Port Blakely Ltd has applied for consent under the special test relating to forestry activities set out in section 16(4) of the Overseas Investment Act. The land is Clutha Forests, comprised of eight established forest blocks in Otago, between Lawrence and Dunedin, planted mostly with pinus radiata, of predominantly mid-rotation age class.

After harvest, Port Blakely intends to replant and maintain a similar replacement crop. It is purchasing the Clutha Forests to provide continuity for its workforce, maintain critical mass for supply chain management, and strengthen partnerships with local processors. The OIO consent includes a condition requiring Port Blakely to protect an area of ecological value in the Scroggs Hill Forest by registering a covenant against the records of title.

Port Blakely’s Website says it is a fifth generation US business buying and selling logs in Washington State, British Columbia and Georgia. It has been growing, harvesting and replanting pinus radiata and Douglas fir in NZ for domestic markets and for export since 2000, and has a barge subsidiary in Tauranga. This is its largest forestry purchase since the early 2000s, bringing its plantation forest close to 35,000 ha. (Sally Rae, 30/5/19, Otago Daily Times).

Its land, forestry rights and Blakely Pacific subdivision plans on the Matakana Island sand barrier were subject to a long challenge in the courts by local Māori and, finally, in 2019 an Environment Court decision that the whole of Matakana Island should be listed as an outstanding natural feature in the Bay of Plenty coastal environmental Plan ([2017] NZEnvC 110; NZ Herald 3/12/11).

New Forests Fund Buys Hikurangi Forests, Gisborne

Eastland Estate Ltd (TLP3 Radiata Ltd , Canada 25.8%; ANZFOF3 NZ Pty Ltd ultimately owned by The Trust Company [Australia] Ltd as trustee for the New Forests Australia NZ Forestry Operating Fund 3 60.5%; Samling Global Ltd, Malaysia 13.6%) has consent to acquire significant business assets and sensitive land, being TreeOne (NZ) Ltd which owns Hikurangi Forest Farms Ltd. New Forests ANZFOF3 is wholly owned by overseas investment funds, and managed by New Forests Asset Management Pty Ltd. Hikurangi Forest Farms owns freehold, leasehold, and forestry rights in approximately 35,071 hectares near Gisborne, made up of the following forests:

Freehold: 156-222 Dunstan Road; Findlay; Wakaroa; Hineroa; Huanui; Kopua; Mangarara; Okiwa; Te Marunga; Waimanu, and Wairangi.
Forestry rights/Leasehold: Mahurangi; Pohaturoa; Ranganui; Read; Rimuroa 1C; Te Puna, and Whareongaonga. The vendor is TreeOne (Malaysia) Sdn Bhd (Samling Global Ltd, Malaysia 100%), and the price is withheld under s.9(2((b)(ii) of the Official Information Act.

The OIO states that Eastland Estate has applied for consent under the special test relating to forestry activities set out in section 16A (4) of the Act. Eastland Estate is an investment vehicle managed by New Forest Asset Management Pty Ltd. Eastland Estate intends to continue maintaining and harvesting crops of trees as part of existing commercial forestry operations. In particular, Eastland Estate is said to have:

demonstrated the land is likely to be used for forestry activities;
committed to replanting all harvested crops of trees on the land;
committed to maintaining access for Department of Conservation (DOC) for protecting indigenous vegetation and fauna and; for beneficial Māori owners to fish, hunt, and trap;
committed to maintaining an Indigenous Biodiversity Management Plan with the forest manager to protect indigenous vegetation and fauna;
committed to maintaining several existing log supply obligations in place with local companies;
confirmed the land contains no residential land, and huts on the land used for overnight hunting accommodation will continue not to be used for residential purposes.

Samling, which retains a third ownership of the Eastland Estate, bought Hikurangi Forest Farms in 1997, establishing it as one of the largest forestry estates in the Gisborne region. As of 1/7/19 it was renamed Aratu Forests Ltd (International Forest Industries 10/7/19).

TLP3 Radiata, which now owns a quarter of the forest, was registered as a company in Edmonton, Alberta on 21/1/19; no other information available. For the rapid recent acquisition of forests by New Forests equity funds, see also June 2018 (Otago); September 2018 (Wairarapa), May 2018 (Hawkes Bay); February 2016 (Wairarapa); September 2016 (Wairarapa, Southland) and October 2016 (Marlborough).

Oil Man Offset By Forestry In Wairoa And Eketahuna

Te Au Ltd (Hugh Lane-Spollen, Singapore 100%) has consent to acquire 735 hectares at 12131 Route 52, Eketahuna, from Darztech Ltd (Gavin David Watson, NZ 50%; Saokaew Watson, NZ 50%) for $3,350,000. The OIO states that Te Au has applied for, and been granted, consent under the special test relating to forestry activities set out in section 16A (4) of the Act. The land consists of two adjoining sheep and beef farms, which are under common ownership and run as a single farming operation. Te Au’s plan is to establish and maintain a long-term forest estate (pinus radiata) while preserving existing areas of native bush.

Te Au Ltd . (Hugh Lane-Spollen, Singapore 100%) has consent to acquire approximately 1037 hectares at 2489 State Highway 2, Wairoa, from Alec Robert Ernest Haynes and Jill Diane Haynes (NZ 100%) for $6 million. The OIO states that Te Au has applied for consent under the special forestry test relating to forestry activities set out in section 16A (4) of the Act. The land, known as Waihua Station, is currently a sheep and beef farm.

Te Au will subdivide and sell the areas that are not required for forestry activities, and plant approximately 500 hectares as a commercial forest. It will be due for harvesting around the year 2045 and replanted following harvest. Te Au was registered as a NZ company in August 2018. In 2018 Lane-Spollen was Regional Manager, Trading Fuel Oil (East) at Shell Oil Company. He appears to be a graduate of Trinity College, Dublin who moved to Singapore in the 1990s.

French Giant Lactalis Buys Into NZ Infant Formula For China

BSA International (France 100%) has consent to acquire 100% of the shares of NZ New Milk Ltd, NZ New Milk Brands Ltd and NZ New Milk Trading Ltd via its wholly-owned subsidiary Sanulac Oceania Pty Ltd . The vendors are Aspen Pharmacare Holdings Ltd (various 68%; South Africa 27%; USA (5.1%) and NZ New Milk Brands Holdings Ltd (NZ 100%) and the price is $136,127,146.

The OIO states that BSA International is part of the Lactalis dairy company, one of the world’s largest dairy products groups, based in France. It plans to acquire the shares as part of a series of transactions under a global acquisition agreement, in which it will acquire the business and assets of a number of companies, which relate to the production, export and sale of infant nutritionals in a number of countries. BSA has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen, and are of good character, and has demonstrated financial commitment to the investment.

Auckland-based NZ New Milk started life in 2011 as an infant formula manufacturer exporting to China and now manufactures and sells its product there. In 2014 it formed a joint venture with Aspen, a global pharmaceutical and nutritional company based in South Africa, to manufacture S26 infant formulas for Australia and other markets. By June 2017 its’ turnover was over $75m.

See commentary of November 2018 on 50% shareholder Aspen Pharmaceuticals receiving OIO consent to fully acquire NZ New Milk (despite Aspen’s practices being under investigation by the European Commission) as Aspen itself, including the New Milk shareholding, was being bought up by Lactalis-Palmalat.

Lactalis is a transnational dairy products corporation, owned by the Besnier family in Laval, Mayenne, France. It was formerly called Besnier SA; hence BSA International. It began in 1933 with a brand of camembert and is now the largest dairy products group in the world (revenue €16.5 billion in 2015), and the second largest food products group in France behind Danone, which has a majority share in milk formula and powder producer Yashili NZ (see April 2019).

Craigmore Permanent Crop Buys Kerikeri Dairy Land For Kiwifruit

Craigmore Permanent Crop Ltd Partnership (Hong Kong 29.9%; Germany 29.1%; UK 28.5%; Finland 6.8%; USA 3.5%; NZ 1.7%; Ireland 0.5%; various overseas 0.1%) has consent to acquire approximately 137.2632 hectares of land at 370 Wiroa Road, Kerikeri, from RHM Trustee Ltd as trustee of JBT Holdings Trust (NZ 100%). Price withheld under s.9(2)(b)(ii) of the Official Information Act.

The OIO states that Craigmore Permanent Crop is a limited partnership established as a horticulture investment vehicle and is part of the wider Craigmore Farming Group. The land is currently used for dairying. Craigmore intends to develop at least 94 hectares into a kiwifruit orchard with 70 hectares of that area being canopy. The stated benefits to New Zealand once the kiwifruit orchard has reached maturity include:

The introduction of approximately $9 million into New Zealand for development purposes. This includes developments such as earthworks
New job opportunities, growing to approximately 32.9 direct seasonal fulltime equivalent jobs at the orchard in the year 2027;
Increased exports to the value of $7 million per annum by year nine from exports of kiwifruit grown on the land;
Preservation of indigenous flora and fauna through planting riparian areas in indigenous vegetation, establishing wind shelters, undertaking a pest control and trapping programme to protect kiwi and native wildlife and undertaking an ecological survey to identify any further action necessary. There will also be the continued protection of an approximately 4.3ha covenanted area of indigenous vegetation.

Scoop reports that this will increase kiwifruit crop by ‘more than a third’, with media reports varying on whether Craigmore will spend $32m or $38m on this development. This follows Craigmore Permanent Cropping’s $52 million apple orchard development in Hawke’s Bay and Gisborne (see commentaries of December 2018 and February 2019).

Scoop says the Partnership fund still has $50m unspent and is “openly looking for minority investments in existing horticultural businesses” (Pattrick Smellie, 22/7/19 ), but doesn’t mention the following OIO-consented transaction acquisition of half of Craigmore Permanent Crop.

German Asset Managers Silvanus Buy 49% of Craigmore Permanent Crop

Craigmore Permanent Crop Ltd Partnership (Hong Kong 29.9%; Germany 29.1%; UK 28.5%; Finland 6.8%; US 3.5%; NZ 1.7%; Ireland 0.1%; various overseas 0.1%) has consent to acquire an indirect interest, through investor Silvanus Vermögensverwaltungsgesellschaft mbH in:

Approximately 18 hectares at 870 Te Matai Road, Te Puke, Tauranga;
Approximately 12 hectares at 60 Orchard Road, Edgecumbe, Whakatane;
Approximately 479 hectares at 68 Caldwell Road and 701 Wakarara Road, Hawkes Bay;
Approximately 59 hectares on Cooper Road, Patutahi, Gisborne; and
Approximately 137 hectares at 370 Wiroa Road, Kerikeri.

Price withheld under s.9(2)(b)(ii) of the Official Information Act.

The OIO states that Craigmore Permanent Crop is a limited partnership established as a horticulture investment vehicle and is part of the wider Craigmore Farming Group. Craigmore seeks consent for Silvanus Vermögensverwaltungsgesellschaft to acquire up to a 49% beneficial interest in Craigmore Permanent Crop. This investment by Silvanus will provide Craigmore with funds to develop a 156- hectare vineyard on a property it currently owns in the Hawkes Bay. The stated benefits to New Zealand once the vineyard has reached maturity include:

The creation of the approximately 11.8 direct fulltime equivalent jobs;
An increase in export receipts from the development of the vineyard; and
An increase in product volume and subsequent processing.

Silvanus is an Italian woodland deity. Search SV for diagrams of its company history and connections. The Craigmore consent listed above is for the last property at Kerikeri. See OIO consents of September 2017 for the Te Puke kiwifruit orchard; August 2018 for the Edgecumbe kiwifruit orchard; December 2018 for Gisborne apple orchard; February 2019 for the Whakarara Rd, Hawkes Bay consent which was cropping and grazing land of which 130 ha was to be for apples, not a vineyard.

Craggy Range Vineyard To Develop More Martinborough Land

Craggy Range Vineyards Ltd (Peabody Family, Australia 100%) has consent to acquire approximately 115.44 hectares at 911 White Rock Road, Martinborough, Wairarapa, from Murdoch James Trustee Ltd as trustee of the Murdoch James and Z Trust (NZ 100%) for $3,550,000. The OIO states that Craggy Range Vineyards is an established producer of New Zealand wine, with vineyards in Martinborough, Hawke’s Bay, and Marlborough.

Craggy Range intends to establish a new vineyard, with at least 70 hectares planted in new vines, along with associated infrastructure such as irrigation and related infrastructure. The land would otherwise be used for grazing, so the investment is likely to result in much of it being converted to a higher, more productive use.

Stated likely benefits are the creation of a number of new permanent and seasonal jobs, an increase in the export receipts to the value of several million dollars as the vines become fully productive, more efficient land use, and increased processing of New Zealand grapes into wine. Craggy Range will introduce new capital for development purposes (planting, new equipment and infrastructure).

Stated environmental benefits include Craggy Range agreeing to protect significant indigenous vegetation, walking access, and agreeing to transfer its’ rights in the Huangarua River bed to the Crown. Craggy Range has previously undertaken investments of benefit to New Zealand, including established new vineyards and wineries, significant development capital, a substantial number of jobs, and growing annual export receipt revenue.

See June 2018 for Craggy Range’s consent to expand its existing Martinborough property, and check out Craggy Range’s Website for resolution of its stoush with Ng&#257ti Kahungunu over the Te Mata Peak track. For other OIO consents involving Craggy Range, see December 1998, October 2000, June 2004, October 2005, August, September and October 2006, October 2009, June 2011, September 2012, September 2013, July 2016 and April and September 2017.

Negociants Expands Its Nautilus Estate Winery, Blenheim

Negociants NZ Ltd (Samuel Smith & Son Pty Ltd, Australia 100%) has consent to acquire approximately 16 hectares at 41 Jeffries Road, Rapaura, Blenheim, from from William Hugh Crosse (NZ 100%) for $4.4 million. The OIO states that Negociants NZ is a family-owned fine wine merchant which has invested in New Zealand’s wine industry for over 30 years, benefitting New Zealand.

Negociants NZ owns and operates six vineyards and two wineries in Marlborough (including Nautilus Estate Winery), and exports New Zealand wines worldwide. Negociants NZ has a close relationship with the land, which has supplied grapes to the Nautilus Estate Winery for over 20 years under contract, which are used to make two of its best-selling wines.

Negociants NZ views this acquisition as critical to maintaining the flavour profile and volume of its award-winning Sauvignon Blanc; the potential loss of this vineyard puts its ability to meet demand for this wine at risk. It will redevelop a portion of the land to expand the area planted in Sauvignon Blanc grapes. The stated likely benefits are to increase jobs, export receipts and processing of primary products.

Established in 1985, Negociants NZ began as a regional importer of European wines and today handles local distribution of over 400 wines to licenced premises, as well as exports to 30 countries. It is ultimately owned by Samuel Smith & Son Pty Ltd South Australia. For past OIO consents, see September 1992, June 1994, March 1998, March 2001, October 2002December 2003, January 2007 and June 2008.

GH Westbury Acquires More Matamata Land For Horses

GH Westbury Pty Ltd (Australia 100%) has consent to acquire approximately 87 hectares at 32 Hopkins Road, Matamata, from Innes Thomas Semmens and Mandy Gail Semmens (NZ 100%) for $7,040,000. The OIO states that GH Westbury is a thoroughbred horse racing, breeding and sales business operating across Australia and New Zealand. To operate its New Zealand business effectively and provide its horses with sufficient room to roam, it requires more land. This land is currently used for dairying.

The stated benefits to New Zealand from the expansion of GH Westbury’s operation include the creation of new fulltime jobs, additional investment into New Zealand, increased exports of yearlings and two-year old horses, enhancement of services in the Waikato region though expansion of GH Westbury’s services, as well as enhanced viability of the business and advancing the Government’s policy to revitalise and reform the thoroughbred racing industry. The GH is Australian horse owner Gerry Harvey who took ownership of the Westbury Stud in 2009 – see September and December 2009. Westbury Stud currently comprises 212 acres at Karaka, South Auckland, and 300 acres on the “Golden Mile” of Matamata’s stud farms and stables.

Equity Fund Investors Acquire Polarcold Stores

Emergent UK 3 Ltd, indirectly wholly owned by Emergent Cold LP (whose majority investors are investment funds advised by Elliott Management Corporation) has consent to acquire 100% of the shares of Polarcold Stores Ltd which has a freehold interest in 0.8078 hectares of sensitive land at 1A Breakwater Road, State Highway 50, corner Hornsey Road, Bluff Hill, Napier. This is an investment in significant business assets as Emergent will acquire the Polarcold business for more than $100m. The vendor is Scales Holdings Ltd (NZ Public 78.1%; China Resources Ng Fung Ltd, Hong Kong 15.3%; various 6.6%); the price is $151.4 million.

The OIO states that applicant is a UK company wholly owned by global cold storage company Emergent Cold LP. Polarcold provides cold storage warehousing to its customers who are mostly New Zealand exporters of meat, dairy products, fish, and horticultural products. It also provides cold storage for New Zealand and overseas producers of food for domestic consumption. It has storage facilities in Auckland, Waikato, Hawke’s Bay, Timaru, Christchurch, and Dunedin. The OIO states that the investment is likely to:

create 7-11 fulltime equivalent (FTE) jobs for people to operate, maintain, and upgrade the cold store facilities;
introduce investment into New Zealand in the first two years following the Investment, to upgrade the cold store facilities; and
advance the significant Government policy of regional development by creating jobs and upgrading cold store facilities in Hawke’s Bay and Timaru.

Polar Coldstores is a wholly owned subsidiary of Scales Corporation Ltd, specialising in controlled temperature storage and warehousing, bulk liquid storage and handling services. It is headquartered in Timaru, with eight branches around NZ. In November 2018 it admitted leaking poison into a north Christchurch stream where almost 2,000 eels were found dead (Stuff, 28/11/18). Scales is an NZX-listed diversified agribusiness that began with wool shipping in 1897 and now operates in logistics, horticulture and food ingredients.

Emergent Cold’s Website describes it as a temperature-controlled storage network providing distribution solutions to the global cold chain. It is market leader in Australia (75+ million cubic feet of temperature-controlled space), and a leading provider in Vietnam. It is expanding rapidly through acquisitions in emerging and developed markets.

As well as Polarcold, its 2019 acquisitions so far include Montague Cold Storage and Oxford Cold Storage in Melbourne, Finlays in Sri Lanka, Pirua in Peru, and New Orleans Cold Storage, USA. This rate of expansion reflects ownership by equity funds. New York based Elliott Management Corporation is one of the oldest and largest fund managers in the world, with approximately $38.2 billion in assets under management as at July 2019

Inspired NZ Holdings Ltd (Nadim Marwan Nsouli, UK 19.9%; UK Public 21.5%; Egypt Public 8.9%; US Public 4.5%; South Africa Public 13%; British Virgin Islands Public 1.8%; various overseas 30.5%) has consent from the Minister for Land Information and the Associate Minister of Finance to acquire 100% of the shares in Global Academic Group Holdco Ltd which owns or controls:

2.8853 hectares at 52 Central Park Drive (6 Waipareira Avenue), Henderson;
14.53 hectares at 50 Hayfield Way, Karaka, South Auckland; and
14.7634 hectares at 6 Keenan Road (438 Pyes Pa Road), Pyes Pa, Tauranga,

from existing shareholders of Global Academic Group Holdco Ltd, which are overseas investment funds managed and/or advised by Pacific Equity Partners Pty Ltd, an Australian incorporated private equity fund manager, and PEP’s affiliates. Price withheld under s.9(2)(b)(ii) of the Official Information Act.

The OIO states that company being acquired, Global Academic Group Holdco Ltd, provides private educational services in New Zealand under the brand ACG Schools, as well as in Indonesia and Vietnam. Over 90% of Global Academic Group’s shares are already ultimately owned by overseas investors. The vendors are primarily overseas investment funds managed and/or advised by Pacific Equity Partners, a private equity fund manager. Inspired NZ Holdings is part of the Inspired Group, a global premium schools’ group with an international network of over 34 schools on five continents. The stated likely benefits to New Zealand are:

advancing the International Education Strategy 2018-2030;
providing new jobs;
increasing export receipts (estimated at over $5 million per year);
enhancing the provision of education services at ACG schools; and
over $5 million of additional capital being invested in the schools.

The OIO consent states that some key benefits for the New Zealand schools and students concerned are likely to result from them becoming part of an international group that specialises in education and developing schools around the world. Inspired NZ has satisfied Ministers that the benefits of the proposed investment are likely to be substantial and identifiable. It has demonstrated financial commitment to the investment and satisfied the Ministers that the individuals who will control the investment are of good character and have relevant business experience.

Global Academic Group was registered in NZ in 2015; see March 2016 for its consent to acquire Academic Colleges Group Ltd. ACG Schools’ Website says it was founded in 1995 by Dawn Jones, ex-Diocesan principal, and Sir John Graham, ex-Auckland Grammar School principal. It is NZ’s largest private educator with 4,500 students at schools and preschools in New Zealand and South East Asia.

Media releases of 21/9/18 and 31/5/19 explain AGC splitting off its pre-school-to-year-13 operation from its tertiary operations to join in Inspired Group. Inspired’s Website describes it as a leading global premium schools group operating in Europe, Asia-Pacific, Africa, the Middle East and Latin America educating over 38,000 students across more than 51 schools.

SkyCity To Build Lakeside Hotel In Queenstown

SkyCity Investments Queenstown Ltd (Australia 46.9%; NZ 29.5%; USA 10.9%; UK 8.6%; various 4.1%) has consent to acquire approximately 1.0153 hectares at 633 Frankton Road, Queenstown, from Passion Cove Ltd (NZ 100%) for $16 million. The OIO states that SkyCity Investments is part of the SkyCity group of companies, New Zealand’s largest tourism, leisure, and entertainment business. It intends to develop a five-star hotel that will complement its existing entertainment facilities in Queenstown and help attract international visitors to Queenstown. The stated likely benefits to New Zealand are:

the creation of new hospitality jobs at the new hotel;
additional investment for development of the hotel;
increased export receipts from increased high net worth international visitors); and
ability for participation by New Zealanders through acquisition of NZX listed shares.

SkyCity operates a Queenstown casino and entertainment centre on Beach Street, opening in 2000 as NZ’s fourth casino. It also has a boutique casino at SkyCity Wharf. For SkyCity’s Australian ownership and acquisitions, see July 2004, June 2005, May 2007, February 2010 and March 2011.

Chinese Group Buys Land For Residential Housing

New Land International Development Co. Ltd (Hongxia Xin, China People’s Republic, resident in New Zealand 45%), Huilai Xin, China PR 18%; Erxing Tian, China PR 13.5%; Peng Pian, NZ 10%; Xiangwei Xin, China PR 9%; Xiaobing Liu, China PR 4.5%) has consent for 3.7268 hectares at 38A Kewa Road, Albany Heights, Auckland, from the Wilberfoss Family Trust Ltd (Peter Charles Robert Wilberfoss, NZ 50%; Caroline Mary Bridges, NZ 50%) for $4.2 million.

The OIO states that New Land International Development Co. is an NZ incorporated company developing land in Auckland for a residential subdivision. New Land purchased the land in February 2015. It acted in reliance on legal advice provided by its’ then legal advisor, and OIO consent was not sought at the time of purchase. In 2018, New Land sought retrospective consent for the acquisition and the OIO imposed an administrative penalty to reflect the breach of the Act.

New Land’s investment has resulted, and is likely to further result, in benefits to New Zealand. New Land will seek resource consent to develop the land into more sections than it is currently zoned for. This is expected to result in additional job opportunities and investment due to the development of more sections, and a more efficient use of the land. New Land has significant New Zealand ownership and control, and currently is developing another significant residential development elsewhere in Auckland that has brought benefit to New Zealand.

New Land’s Website says the New Land Investment Group is financed by the Zhuozheng Group, founded in Xiongan, China in 1992. Zhuozheng Holding Group is an international company involved in international investment, financing, tourism development, real property, import and export, construction, and commercial hotels. In 2015, Zhuozheng started to invest in Australia and New Zealand, registering four companies in New Zealand: New Land Tourism Development Co. Ltd, New Land Building Ltd and New Land International Development Ltd and New Land Auckland Ltd.

It also has seven subsidiaries in Australia: Australia New Land Pty Ltd, New Land Investment Holdings Pty Ltd, Australia New Land Development Pty Ltd, New Land Tourism Pty Ltd, New Oceania Realty Pty Ltd, Australia New Land Construction Pty Ltd and New Land Brisbane Pty Ltd. New Land International Development Ltd, with Hongxia Xin as one of two directors, started projects on both the North Shore and in West Auckland.

In 2017 two new companies were registered with the same directors: New Land Building Co. Ltd and New Land Auckland Ltd, an agent for Moser, a German brand of doors and windows. So, it appears that, with the right legal advice and an NZ-resident major shareholder, overseas interests won’t be much inconvenienced by the legislative changes restricting residential housing ownership to New Zealand citizens and residents only.

NZ Lifestyles: Robert Hickson, Blue Carbon Services, Castlepoint

Blue Carbon Services Ltd (Australia 100%) has consent to acquire approximately 878 hectares at 77 Mataikona Road, Whakataki, Tinui, Wairarapa, from Murdoch James Trustee Ltd as trustee of the Murdoch James and Z Trust (Charlie Zheng, NZ 75%; Nan Li, NZ 25%) for $4,850,000. The OIO states that Blue Carbon Services is wholly owned by Robert Hickson, an Australian citizen. This land on the east Wairarapa coast is known as Waio Station and is used for sheep and beef farming, which will continue under the investment.

Mr Hickson currently resides and works in New Zealand and his partner Robyn Cornford intended to move here in July 2019. They have satisfied the OIO, through providing definite plans with supporting evidence, that they intend to reside in New Zealand indefinitely. Overseas persons intending to reside in New Zealand indefinitely are not required to show that their investment in sensitive land is likely to benefit New Zealand. This supports migrants in the process of moving to New Zealand to make New Zealand their home.

An agriculturalist and economist by training, Hickson has 30 years’ experience in development consulting, particularly microfinance, and worked for a range of international institutions and non-Government organisations (NGOs). He has an interest in growing kelp for carbon sequestration together with mussels in deep waters off the east coast of NZ, working with the universities of Auckland, Otago and de los Lagos in Chile (Linked-In). The farm is on the coast just north of Castlepoint.

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