July 2001 decisions
On Energy gets approval
to acquire Genesis’ retail electricity meters
Ford sells its Wiri alloy wheels manufacturing business
British Telecom fails to sell out of Clear Communications
Bernard Matthews fails in attempt to take over Richmond
The Warehouse in joint venture with Westpac to run The Warehouse
Card
Hikurangi Forest Farms of Malaysia buys 845 hectares in two Gisborne
stations
Mark Blakes’ family sells him “Poronui Ranch”, Taupo
On Energy gets approval to acquire Genesis’ retail electricity metersOn Energy Ltd and its subsidiary, Energy Waikato Ltd, have approval to acquire the retail electricity meters owned by New Zealand government-owned Genesis Power Ltd for $56,025,000. It includes prepay meters and relays but excludes kiosks and other prepay card sales assets. Genesis will “enter into a meter rental service agreement with OEL/EWL which will see all the meter services leased back to Genesis”. On Energy is owned by Natural Gas Corporation Holdings Ltd, which in turn is owned 66.05% by AGL (The Australian Gas Light Company) of Australia and 10.2% by the consumer trust, the Hutt Mana Energy Trust. The sale and rent-back of the meters is part of a more significant deal – the sale of On Energy’s 290,000 North Island retail customers to Genesis for $109.7 million. This completed NGC’s exit from electricity retailing. A month before, On Energy had sold its 115,000 South Island customers to Genesis’s sister government-owned company, Meridian Energy. Some 200 jobs were lost in the process in On Energy’s Christchurch call centre. Media reports put the price On Energy received for the meter business considerably lower: $44 million (Press, 15/9/01, “NGC deal”, p.27; 26/7/01, “Sale hits 200 staff”, p.1). The sales completed the process of debunking the 1998 electricity “reforms”. They left virtual monopoly retail positions in a number of areas, including Christchurch. Power shortages due to lack of water for the main hydro generating plants were the immediate cause: On Energy (in its previous persona of TransAlta, named after the Canadian company from which NGC bought it) had failed to hedge against the rapid increase in spot electricity prices brought about by the shortage. Because its own generating capacity was far below its own retail customers’ demand, it was near-bankrupted by the mismanagement and had to be bailed out with loans from its parent AGL. But its mismanagement went back much further, including high prices and an appallingly unresponsive and badly run call-centre accompanied by lack of personal customer contact. NGC’s collapse in the electricity market (it remains the dominant supplier in the retail gas market) was only one of the symptoms of the failure of the “reforms”. The power shortage showed up another. Prices on the wholesale spot electricity market rose astronomically, as they were intended to do (up to 48 cents a KWh in August from a normal price around 5 cents, according electricity market operator, M-Co). But fear of customer reaction meant that retail suppliers resisted passing on the increases. That reaction was demonstrated to TransAlta when it tried to raise prices at the start of the “reforms”, by the steady and debilitating loss of thousands of customers. It was reinforced by competition from major retailers – such as Edison-owned Contact Energy, and government-owned Genesis, Meridian, and Mighty River – which had a near balance between their own generating capacity and retail demand, and so could hold retail prices. In all, it meant that the “market” failed to work to conserve electricity in anything like the quantities required to avert a power crisis. Instead the country reverted to the same pre-market tactics used when the industry was government-owned: calling on people to save electricity voluntarily. It worked. Which calls into question the whole rationale for the “reforms”. They have spectacularly failed on all advertised fronts: reducing retail prices, improving service, increasing competition, providing incentives to invest appropriately in generation. With its purchase, Genesis is now the largest electricity retailer with 450,000 consumers and 26% of the retail market. Contact has 380,000 (22%), Mighty River Power (trading as Mercury and First Electric) has 280,000 (16%), TrustPower also has 280,000 (16%), Meridian has 230,000 (13%), and Todd Energy (operating as FreshStart) has 65,000 (4%). In generation, Meridian Energy has 23% of New Zealand generation, Contact 20%, Genesis 16%, and Mighty River Power 11%. Natural Gas Corporation, TrustPower, Todd Energy and a number of smaller generators hold the rest of the market (data from M-Co: see http://www.m-co.co.nz/C1changes.htm). Consolidation has not completed yet: Contact is reportedly eyeing TrustPower. (TrustPower is controlled by Alliant of the U.S.A. and Infratil together with 46.8%, but with major shareholdings by AGL (20.5%) and Tauranga Energy Consumer Trust (22.7%).) (Press, 9/8/01, “Contact eyes major rival”, p.13). The slave trade in consumers has also lost its gloss. During the white gold rush in the first months of the “reforms”, up to $1,300 was paid to acquire each consumer, though prices varied greatly (for example Contact Energy paid $347.50 for each of United Electricity’s 130,000 Dunedin customers). TransAlta (On Energy) paid $770 for each of its Christchurch customers, though only $470 for the North Island consumers it bought from Power New Zealand. It had all its consumers on its books at a value of $960 each (Press, 17/8/01, “NGC loss tipped at $300m”, p.14). On Energy’s sale to Genesis worked out at only about $380 each. We can only say: we told you so. See our various articles in these commentaries in Foreign Control Watchdog, and our submission to the Ministerial Inquiry into the Electricity Sector (all available at http://canterbury.cyberplace.org.nz/community/CAFCA/publications/Electricity/index.html) Ford sells its Wiri alloy wheels manufacturing businessArgent Metals Technology Ltd which is 76.25% owned by ION Ltd of Australia, 18.75% by ANZ Banking Group of Australia, and 5% by MMP Holdings Ltd of Aotearoa, has approval to acquire the alloy wheels division of Ford Motor Company of New Zealand Ltd, a subsidiary of Ford Motor Company of the U.S.A. The price has been suppressed. According to the OIC, “The Applicant [Argent] was incorporated for the sole purpose of acquiring the alloy wheels division from Ford Motor Company of New Zealand Limited. The division is primarily involved in the design, manufacture and sale of alloy wheels and cross members to original equipment manufacturers in the passenger car and light truck segments of the automotive industry. The Applicant states that its acquisition of the alloy wheels division will ensure the business continues to operate in New Zealand. The Applicant has indicated that it will be committed to utilising and building on the skills of the existing management team and expanding the business’ aluminium and magnesium exports. The existing business will benefit from being an entity with strategic goals rather than being a non-core division of a major corporation.” The acquisition was accomplished by ANZ first taking 95% of the shareholding in Argent, and then selling 76.25% to ION. According to AutoAsia Online (http://www.auto-asia.com/print.asp?news=5801, “Ford NZ sells alloy wheel plant to Argent Metals”, 22/6/01), ION is the former Iron Carbide Australia, which has an alloy casting business of its own, Castalloy. It sells wheels to Harley Davidson and engine components to GM, Holden, Proton and Peugeot. AutoAsia comments: “New Zealand’s modest vehicle assembly industry faded away during the 1990s after the government removed import tariffs. Most parts plants shut up shop as well but Ford alloy wheel plant at Wiri instead pursued export business to Australia and North America. Ford ploughed in investment to lift annual capacity from 650,000 units to 1.8 million.” “Faded away” is euphemistic: the assembly industry collapsed in very short order, with the loss of several thousand jobs in both the assembly and associated parts industries. Ford made much of its continuing commitment to Aotearoa in its alloy wheel manufacturing, though it made Aotearoa simply a small station on the conveyor belt of international production. ION will continue the exports to Ford’s US plants, but this leaves Ford’s commitment looking very hollow. According to Argent, “the facility is profitable but is not a core business to Ford”. According to the New Zealand Press Association, ANZ will retain its investment through ANZ Private Equity. The rescue was organised by former Fletcher Challenge new ventures specialist, Michael Morais, and Argent will be chaired by expatriate New Zealander and ION head, Graeme Salthouse. The Wiri plant employs 550 staff, and “there would be no job cuts or immediate upheavals”. It earns $135 million in exports a year. (Press, 25/6/01, “Consortium nabs wheel plant”, p.13). However, a matter of concern in the longer run will be how ION distributes its production between Australia and Aotearoa. British Telecom fails to sell out of Clear CommunicationsTransparent Holdings Ltd, owned by a consortium largely from the U.S.A. and the U.K., has approval to acquire Clear Communications Ltd for a sum “to be advised” from Newgate (NZ) Holdings Ltd, a subsidiary of British Telecommunications PLC of the U.K.. “Newgate (NZ) Holdings Limited has made a strategic decision to divest a majority interest in Clear. The consortium that comprise the Applicant intends to continue with business plan adopted by Newgate focussing on the build out of Clear’s local access network. The plan requires a significant, ongoing capital expenditure. The Applicant states that the plan will expand Clear’s business and increase its market share.” However the sale did not proceed. In early August, the consortium announced it had withdrawn its offer, said to be worth about $350 million, including about $150 million in syndicated debt reportedly arranged by ANZ and BNZ through Hong Kong. (Press, 19/7/01, “Banks contacted by Clear buy-out group”, p.15; 6/8/01, “Clear bid withdrawn”, p.22; 11/8/01, “‘No desperation’ for BT to part with Clear”, p.22.) British Telecom is trying to sell assets to reduce its high debt levels due in large part to the excessive prices it (like other telecommunications companies) paid for new technology cell-phone frequencies in Europe. The new technology has yet to prove its feasibility and usefulness to customers. The consortium is dominated by the investment company, Berkshire partners of the U.S.A., and included Clear management. It consisted of: U.S.A. Berkshire Partners LLC, 70% David Teece, 0.0177% U.K. British Telecommunications PLC, U.K., 11.3% Unknown overseas Unknown Overseas Persons, 12.921% Switzerland Fay Richwhite Holdings Limited, 0.885% Aotearoa Todd Capital Limited, 1.77% Public, 1.6992% Management of Clear Communications Limited, 1% Plowman Family, 0.177% Oceania and Eastern Holdings Limited, 0.177% Management of Jump Capital Limited, 0.0531% Jump Capital is a telecommunications and technology investment company. Its shareholders, according to its July 2001 Annual Report are Mogridge and Associates Limited, Auckland, 2,300 (23%) (Bryan Mogridge is a Jump director) Piper Limited, Auckland, 2,300 (23%) (owned by Shelley Anne Hodge, Auckland; Mark Hodge is a Jump director) Brat Capital N.V., Antwerp, Belgium, 2,900 (29%) Oceania Capital N.V., Antwerp, Belgium, 833 (8.33%) Todd International Investments N.V., Antwerp, Belgium, 833 (8.33%) Fay, Richwhite Holdings Limited, St Helier, Jersey, Channel Islands, 834 (8.34%) It appears that Jump had a major hand in putting together the consortium. It is interesting that Fay Richwhite Holdings are now classified by the OIC as a Swiss company, though its owners are New Zealand citizens, and its subsidiary that owns shares in Jump is registered in a tax haven, the Channel Islands. Such is the depth of their love for New Zealand. Oceania and Eastern Holdings is the investment company of prominent and often controversial businessmen Robin Congreve, Geoff Ricketts and Chris Mace. Again, its subsidiary owning Jump shares is registered in Belgium, at the same address as the Todd’s subsidiary and Brat Capital (whose ownership we cannot ascertain). Bernard Matthews fails in attempt to take over RichmondBernard Matthews Ltd of the U.K. has received OIC approval to acquire 100% of meat company Richmond Ltd, for a sum “to be advised”, although the bid failed. Hawkes Bay based Richmond had been the subject of a bitter battle for control between local shareholders and two of the three other large meat companies – South Island based farmer cooperative, PPCS (formerly the Primary Producers Co-operative Society), and Auckland-based listed company, AFFCO. The locals feared that their approach would be “driving procurement prices down and competing in the market” (Rural News, 20/3/00, “Locals set to fight for control of Richmond”, p.5). The bid was initially rebuffed on procedural grounds when PPCS’s buying breached Richmond’s constitution, and PPCS was forced to sell 36% of Richmond’s shares to a specially created company, Active Equities, operated by former Brierley Investments Ltd executives, Bruce Hancox, Patsy Reddy and Paul Collins. However in 2001, with a 16.7% shareholding still in its pocket, PPCS began a takeover bid for 60% of the newly listed Richmond, in competition with the British meat group, Bernard Matthews. PPCS won the bidding, raising its shareholding to 34% with an option to increase this to about 53% between February and September 2003 under a deal with Active Equities. This locked out Bernard Matthews (Press, 1/6/01, “PPCS to get a headstart”, p.14; 11/6/01, “North Meats lifts Richmond bid”, p.16; 13/6/01, “Ex-BIL trio hand Richmond to PPCS”, p.19). Richmond is now 35.8% owned by Hawke’s Bay Meat Ltd, itself 51% owned by Active Equities and 49% by PPCS. PPCS owns 16.7% in its own right, and Waitotara Farmers Holding Company Ltd holds 7.3%. According to Richmond, “farmer suppliers to Richmond collectively hold about 8% of its shares, while approximately 5% are held by Richmond staff” (http://www.richmondnz.com/05,00.html). The situation is an historical irony. Until the 1980’s, the meat industry was dominated by overseas (largely British) owned companies, renowned for their rigidity, inefficiency, appalling industrial relations, and inept or non-existent marketing focussed on the U.K. It is now largely (though not entirely as will be seen) locally owned, and considerably more efficient, with diversified markets. This has been at the expense of jobs and working conditions: deunionisation, shift work and automation are now common, but that is to some extent balanced with proportionally less casualisation and more permanent staff. The industry has been restructured by the localisation of ownership rather than its overseas takeover. But there are still overseas owned companies in the industry. One is Japanese owned ANZCO (see our commentary on the April 2001 decisions). Another is the group owned by Bernard Matthews: according to the OIC, Bernard Matthews Ltd “has been involved in the New Zealand meat industry since 1984. It currently has ownership of: · 100% of Advanced Foods Limited (operating a processing plant near Waipukurau in Hawkes Bay); · 50% of Lamb Packers Feilding Limited (operating a processing plant in Feilding); and · 50% of Progressive Gisborne Limited (operating a deboning plant in Gisborne). Bernard Matthews ownership risks a return to the bad old days, at least in terms of markets tied to Britain. According to the OIC: Bernard Matthews Limited has extensive international experience in the production and marketing of turkey and other meat products. The Applicant intends to utilise its industry, marketing and investment expertise to improve the availability of New Zealand lamb exports to the United Kingdom. Its focus is on extensively processed value added and branded products rather than low level processed “commodity” meat exports. It is the sole supplier of frozen lamb to Tesco and a significant supplier to the other main supermarket chains. Moreover, it purchases all of its lamb from New Zealand and all its frozen NZ lamb products are packed in New Zealand. Bernard Matthews Ltd is owned 98.9% by B.T., J.K., and K. Matthews, and 1.1% by D.J. Joll, N.F. Bartram, N.C. Harrison, all of the U.K. Richmond owns 609 hectares of land comprising: 495 hectares in Hawkes Bay, 37 hectares in Waikato, 42 hectares in Taranaki, 18 hectares at Tuna Street, Dargaville, Northland, 8 hectares at Normanby Road, Paeroa, Coromandel and 8 hectares at Foxton-Shannon Road, Shannon, Manawatu. The Warehouse in joint venture with Westpac to run The Warehouse CardThe Warehouse Financial Services Ltd, which is owned 51% by Westpac Banking Corporation of Australia and 49% by The Warehouse, has approval to acquire The Warehouse Card assets from Westpac for a suppressed amount. The Warehouse is owned 30.53% by S.R. Tindall of Aotearoa, 29.43% by the Tindall Foundation of Aotearoa, 23.04% by other shareholders in Aotearoa and 17% by “unknown overseas persons”. “The joint
venture will combine the brand, store locations and marketing channels and services
of The Warehouse with the products, product management expertise, back-end
processing systems, infrastructure, and risk/credit management expertise of
Westpac Banking Corporation.” Hikurangi Forest Farms of Malaysia buys 845 hectares in two Gisborne stationsHikurangi Forest Farms Limited, which is owned in Malaysia, has approval to purchase 845 hectares at Oratia Station, Tauwhareparae Road, Gisborne and Ngawhiti Station, Hokoroa Road, Gisborne for $1,600,000 (plus GST) from OCH Forests Limited of Aotearoa. Hikurangi Forest Farms’ main shareholders are Samling Strategic Corporation Sdn. Bhd (30.6%), Strategic Corporation Sdn. Bhd. (13.84%), and Perkapalan Damai Timur Sdn. Bhd. (6.65%). In fact these are the shareholders of Glenealy Plantations (Malaya) Berhad, the direct owner of Hikurangi Forest Farms. The company is purchasing the land “in order to expand its existing forestry plantation development on the East Coast”. The land is “bounded on three sides by forest plantation land” owned by the company, which will plant it in Radiata pine and incorporate it into their existing forestry holdings in the East Cape/Gisborne region. Hikurangi Forest Farms is becoming a major land owner on North Island East Coast. In February 1998 we reported that it had gained approval to acquire the 555 hectare Tuahu Station, Tauwhareparae Road, inland from Tolaga Bay, East Coast (Gisborne) for $765,000 for afforestation, incorporating it into their existing forestry holdings in the region. In October 1997, Hikurangi acquired the 420 hectare Weka Station adjoining its Waimanu Forest in the Waimata District, Gisborne, East Coast, for afforestation. Glenealy bought Hikurangi Forest Farms from Fletcher Challenge Forests Ltd for $210 million in December 1996 when Fletchers sold it to raise money for its Forestry Corporation purchase. Hikurangi now owns approximately 35,000 hectares of freehold land, forestry/cutting rights, and leasehold land on the East Coast. Land for forestry· In four approvals, blocks of land in Waikato, near Ngaruawahia, are being purchased by investors from Taiwan from the New Zealand Forestry Group Ltd, which is owned 76% by Wesley Garratt of Aotearoa, and 24% by J. Hong of Taiwan. The purchasers are members of the Brooklands Forest group, which has “entered into an arrangement with New Zealand Forestry Group to develop approximately 1,200 hectares of land at Ngaruawahia. Currently 138 hectares of land has been afforested”. The sale is like many in this and other regions organised by New Zealand Forestry Group, the last such sales being in June 2001. The investors provide the money, while New Zealand Forestry Group manages the development of the forestry operation. The four investors in this case, acquiring land at State Highway 22, Te Akau Road, are: ·
Chang
and Liao Family Trust, acquiring 13.1
hectares for $83,840; ·
Hu
Family Trust, acquiring 12.1
hectares for $77,440; ·
C
& S Family Trust, acquiring 18.2
hectares for $116,480;
·
Rayon
Family Trust, acquiring 14.8
hectares for $121,600. · Pan Pac Forest Products Ltd, owned by New Oji Paper Co Ltd and Nippon Paper Industries both of Japan, has approval to acquire 233 hectares at Aropaoanui Road (formerly Mairau Road), Hawkes Bay for $520,875 from the Mahony Farming Trust. It adjoins pinus radiata forest from which Pan Pac already obtains wood for its Whirinaki processing plant. Pan Pac’s long term plans for the region include a sawmill. ·
Forestry New Zealand Ltd, a subsidiary of Evergreen
Forests Ltd, has approval
to acquire 255 hectares of land at Golden Bay Forest, East Takaka, Nelson from Exotic Timbers for $3,232,466. In all, Evergreen proposes “to acquire 5
forestry blocks in the Takaka area, from Exotic Timbers. The purchase
includes the acquisition of Crown Forestry Licences over a total of 392
hectares.” It will replant the land after it has harvested the existing
trees. Evergreen is controlled by Xylem Fund ILP of the U.S.A. (46.6%), and its
remaining shareholding consists of 4.4% by Hambrecht and Quist Guaranty Finance LLC of the U.S.A., 19.9% in listed shareholdings Denmark, 16.9% in listed holdings in Aotearoa, 11.7% in listed holdings in the U.S.A., 0.5% in Australia, and 0.2% in Hong Kong. That makes it 83.1% overseas owned and 62.5% owned in the U.S.A. ·
Southland Plantation Forest Company of New Zealand
Ltd, ultimately 51% owned by New Oji Paper Company Ltd, 30% by
Itochu
Corporation, 10% by Fuji Xerox Co. Ltd, and 9% by Fuji
Xerox Office Supply Company Limited, all of Japan, has approval to buy 952 hectares at Merry Basin and Happy Valley Blocks, Longwood Forest, Southland from
Rayonier New Zealand Ltd (owned
by Rayonier Inc of the U.S.A.) for $793,125. “The land being purchased has been planted in
forestry for some years. The Vendor, Rayonier New Zealand Limited will
continue to hold a Forestry Right over the land and will progressively
harvest the forest. As the current forest is harvested, SPFL will replant the
land in eucalypt plantings.” As usual with its purchases, South Wood Export Ltd of Japan will conduct all forestry activities
under contract. The last such purchase was in April 2001 (see our commentary
of that month for further details on SPFL’s operations). ·
Southland Plantation Forest Company of New Zealand
Ltd also has approval to buy 520 hectares
of land at Lilburn Valley Road, Southland for $759,374 for forestry. It
is currently used for sheep, beef and cattle grazing. As usual, all forestry
activities will be conducted under contract by South Wood Export Ltd of
Japan. “It is SPFL's longterm plan to establish 14,400 hectares of Eucalyptus
Niten plantation for the production of hardwood fibre, with a 12 to 15 year
rotation, with replanting to occur after harvesting. Since 1992, SPFL has
developed 7,600 hectares of Eucalyptus Niten plantation, with an annual
planting of 1,200 hectares.” Land for
wine
· Walker and McNaught Ltd, owned 80% by Stephen L.K. Walker of the U.K., and 20% by Dr Nigel A.C. McNaught of South Africa, has approval to acquire 136 hectares at Altimarloch, Awatere, Marlborough, for $1,125,000. They propose “developing the property into a commercial vineyard/olive grove and winery operation. Within the first five years 40 hectares of grapevines and 5-10 hectares of olives will be planted with a further 20 hectares of vines to be planted subsequently.” Subsequent plantings will depend to some extent on water rights. One of the shareholders (unidentified) in the company “currently intends immigrating to New Zealand with his family in about two years time following the expiry of his employment contract. In the event that the contract is extended then the proposed move would be delayed for a further two year period”. The 20% shareholder, Dr Nigel McNaught, “has relevant expertise in viticulture development.” He owns and operates a vineyard and winery in South Africa and exports wines under his own label “Stoney Brook”. “After development of the vineyard has been completed, Dr McNaught will advise in the management of the vineyard, assisting in the strategic planning, the selection of appropriate vine and rootstocks, and vineyard management.” They wish to produce “high quality wines to export, based on the major white grape varietals, Sauvignon Blanc and Riesling and a smaller area of Riesling and Pinot Gris, as well as premium burgundy grapes such as Pinot Noir”. · Berridge Vineyard Estates Ltd, owned by Richard David Berridge of the U.S.A., has approval to acquire 23 hectares at State Highway 6 (Wanaka to Luggate Highway) for $517,500 as the first of a number of properties for a viticultural operation. Berridge “has been actively involved in many vineyard/winery developments”. The company “proposes to convert farm land that is presently lying fallow and not producing any income into a premium pinot noir vineyard. It is proposed that 15 hectares will be planted in pinot noir vines. The balance of the land will be landscape buffer areas and open space. The grapes from the vineyard, in the short term, will be processed by a local winery under contract. In the longer term, the applicant will establish its own winery, which will be sited on another property yet to be acquired. The winery will process the grapes from this vineyard and the others that the applicant proposes to establish. It is intended that the wine will be marketed both locally and overseas, primarily in the United States where the applicant has extensive market connections.” Mark Blakes’
family sells him “Poronui Ranch”, Taupo
Poronui Ranch Ltd, owned by Mark Christopher Blake of the U.S.A., has approval to acquire the 121 hectare “Poronui Ranch”, 44 km from Taupo, Waikato, for $4,450,500 from Poronui Station Ltd, which is owned 56% by him, 33% by Wendy Margaret
Blake, and 11% by Todd Austin Blake, both relatives
resident in the U.S.A. According to the OIC, “In November 1999 Poronui Station Limited was granted consent to acquire ‘Poronui Ranch’ from Simon Dickie Adventures Limited. Since 1999 five hectares of ‘Poronui Ranch’ has been developed as a world class sporting/recreational lodge facility to service the trout fishing, hunting and eco-tourism activities that have been established on the property and an adjoining property also owned by Poronui Station Limited. The remaining 116 hectares of ‘Poronui Ranch’ continues to be used for deer farming.” “Poronui Ranch” adjoins the 6,334 hectare Poronui Station, also owned by the Blakes. It was bought from Simon Dickie Adventures (owned by S.C. Dickie of Aotearoa) for $2,530,000. Mark Blake’s relatives are transferring the property to his company because he provided the money for the original purchase of “Poronui Ranch” and the capital for the subsequent “substantial development” of the property. Poronui Station was acquired by Poronui Station Ltd in June 1998 from two subsidiaries of Carter Holt Harvey Ltd (itself a subsidiary of International Paper Products of the U.S.A.), for $7,000,000. CHH retained ownership of forests on part of the land. The station adjoins land held for conservation purposes. The station was the focus of commercial deer hunting and trout fishing operations. Its sale met opposition from anglers. See our commentary on the June 1998 decisions for further details. In June 2000, Blake Family Vineyard Ltd, owned by Mark Blake, gained OIC approval to acquire 9.8 hectares at Irongate Vineyard, Gimblett Road, Hawkes Bay for $1,350,000 from Hastings Vineyard Ltd. Blake intended to use the grapes to produce its own branded premium wine for use at “Poronui Ranch”. Other rural
land sales
· Jean-Luc and Sally Anne Grault of France have approval to acquire 11 hectares at 65C Sinclair Road, Ararimu, South Auckland for a lifestyle property, for $495,000. They have applied for permanent residency in Aotearoa and intend to reside on the property. · John Harold Thomas Lewis of the U.K. has approval to acquire 11 hectares at Pilmer Road, RD 1, Gisborne for $315,000. He “plans to increase the total plantable hectares of grapes currently grown on the property and continue to maintain the squash crops that are planted on the property. The development of the property will involve removing the existing Chasselis grape variety and replanting in Chardonnay grapes.” He is investing in the property “to further diversify his existing business interests in the United Kingdom”. ·
Mr C.
Vickers of the U.K.
has approval to acquire 41 hectares at
124 Elliots Road, Cust, Canterbury, for $787,500. He and his family are applying
to immigrate to Aotearoa and intend to reside on the property. It is
currently leased to a local deer farmer, but Vickers intends to farm the
property himself and buy in stock. “In addition there is at present a temporary
dwelling located on the property which will possibly be converted into a
homestay once the permanent dwelling is erected.” ·
M. and J. Eames of the U.S.A. have approval to acquire 4.8 hectares of freehold and 2.7 hectares of leasehold land at 411 Heywards Rd, Clarkville, Christchurch, Canterbury
for $770,625. They “intend to
reside permanently in New Zealand. The applicants are currently applying for
a business visa. The land they wish to purchase is where they intend to
reside. The freehold land currently consists of a house and immature olive
grove plantings and the applicants intend to further develop the grove, to
make olive oil from the plantings, bottling the same and selling the oil both
in New Zealand and overseas, primarily at least initially in California.” |
