March 2005 decisionsTransfield to take over Areva T&D (New Zealand) from Areva of France Multiplex buys $261m property portfolio from AmTrust Macquarie shuffles property holdings Bridgecorp Holdings buys Bristol Securities Ltd Wyuna Station freeholds 2700 ha., and given retrospective approval for US loan US led company buys Butterfly Bay, Whangaroa land for luxury resort More Waihi land for Martha Mine Decision on vineyard lifestyle development near Alexandra released a year later
Transfield to take over Areva T&D (New Zealand) from Areva of FranceTransfield Services (New Zealand) Limited, owned in Australia has approval to acquire Areva T&D (New Zealand) Limited for $159,775,000 from Areva Holdings SA of France.
Transfield is owned as follows: · 65.12% by minor shareholders; · 13.08% by Luca Belgiorno-Nettis; · 13.08% by Guido Belgiorno-Nettis; and · 8.72% by Franco and Amina Belgiorno-Nettis all of Australia.
Included in the sale is 1.0 hectares of freehold land situated at Raymond Street, Bunnythorpe, Manawatu and 4.0 hectares of leasehold land situated at Springvale Road, Clyde, Otago.
The deal is part of an Australasian deal worth “approximately” A$193 million, according to the two companies. It was actually announced on 22 December 2004 (“Transfield Services signs agreement with AREVA to acquire its Electrical and Telecommunication Services business”, Press Release on http://www.areva.com) as follows:
Transfield Services and AREVA T&D have signed an agreement today on the sale of AREVA T&D’s New Zealand and Australian Electrical and Telecommunication Services business.
The Electrical and Telecommunications Services business, which is not core-business for AREVA T&D, provides outsourced engineering and maintenance services to key infrastructure and industrial players. It operates in the electricity, heavy industrial, telecommunication and related infrastructure segments.
It is headquartered in Auckland, New Zealand and has approximately 1,900 employees and over 600 sub-contractors. The turnover is NZ$300 million (€ 160 million). Approximately 56% of turnover is derived in New Zealand, the remaining 44% in Australia. AREVA T&D will ensure that its high-level of service excellence to clients is maintained throughout the sale period.
The business currently provides the following services:
• Electrical Industry (approximately 50% of turnover) – Power station maintenance and electrical installation, transmission line, distribution network and substation maintenance, heavy industrial maintenance, transformer refurbishment, meter calibration,
• Telecommunication Industry (approximately 50% of turnover) – Fault response to homes and businesses, network maintenance, network design and construction, maintenance of records, maintenance and construction of microwave links, long-haul fibre-optic installation, and design, installation and maintenance of wireless networks.
These services are delivered to customers through a network of 45 service centres in New Zealand and 28 service centres in Australia.
… The purchase price for the Business is approximately A$193 million (€ 110 million) at current exchange rates.
The agreement is subject to regulatory approvals and standard conditions precedent and completion should occur by April 2005.
Transfield Services is a leading provider of operations, maintenance and asset management services across 11 industry sectors, with more than 110 contracts in Australia, New Zealand, Malaysia and the Middle East. The company has annual revenue of over A$1.2 billion and more than 8,500 employees. It is publicly listed and included in the S&P/ASX 200 index.
Transfield was part of MetroLink, a consortium of private-sector transport operators which in 1999 was awarded a 12-year franchise when Yarra Trams in Melbourne were privatised.
According to the OIC, Transfield
is involved in the provision of operations, maintenance and asset management services in New Zealand and is part of the Transfield Services Group providing such services across Australia, New Zealand and South East Asia.
The sale of the shares in Areva T&D (New Zealand) Limited is part of an Australasian-wide strategy currently underway by the French-based Areva Group to divest its transmission and distribution maintenance services businesses and focus solely on its core business of manufacturing products. In particular, the shares in Areva T&D (New Zealand) Limited are for sale as part of an Australasian package with Areva T&D Australia Limited. The Applicant has emerged as the successful bidder from a tender process.
Areva T&D’s electrical services business in New Zealand provides specialist services and undertakes maintenance and construction in each segment of the electricity supply chain, being generation, transmission, distribution and industrial and infrastructural segments. Areva T&D’s telecommunications services business provides fault response, provisioning and network design and build services to Telecom New Zealand and a number of other clients.
The Applicant considers that the proposed acquisition provides an opportunity to strengthen and broaden its New Zealand operations by providing geographical and industry expansion. [Decision number 200510028.] Multiplex buys $261m property portfolio from AmTrustMultiplex Constructions (NZ) Limited, owned in Australia, has approval to acquire a portfolio of 12 commercial properties in Auckland for $261,000,000 from AmTrust Pacific Properties Limited, owned by Michael and George Karfunkel of the U.S.A.
According to the OIC, Multiplex
proposes to acquire a portfolio of 12 commercial properties situated in Auckland from AmTrust Pacific Properties Limited. The proposed acquisition will enable the Multiplex Group to diversify the geographic spread of its properties and increase its holding of commercial property in New Zealand.
The price differs from media reports. For example the Australian Property Review (“Multiplex snaps up NZ portfolio for $NZ216m”, by Ted McDonnell, 9/3/05, http://www.propertyreview.com.au/archives/2005/09032005/headline/09032005002.html) puts the price at $216 million. This appears not to be a simple case of dyslexia. It states: “The assets have been independently valued at $NZ237.6 million and will be offered to its unlisted Multiplex New Zealand Property Fund for syndication at $NZ223 million.” [Decision number 200510029.] Macquarie shuffles property holdingsIn three decisions, the OIC has given various Macquarie associated companies approval to reshuffle their ownership of a number of properties:
Macquarie Goodman Property Trust, owned 9.566% by minor shareholders in Australia, 6.956% by the Macquarie Bank Limited of Australia, 3.478% by the Goodman Family of Aotearoa and 80% by other minor shareholders in Aotearoa, has approval to acquire 50% of Macquarie Goodman Industrial Trust’s property portfolio in Aotearoa “excluding certain properties that have not been developed”, 100% of Auckland Business Park Pty Limited. The actual sellers are named as Macquarie Goodman Nominee (NZ) Limited “as nominee for Macquarie Goodman Industrial Trust and Macquarie Goodman Property Trust”. The consideration is $303,800,000 [Decision number 200510030].
Macquarie Goodman Industrial Trust, owned 100% in Australia, has approval to acquire up to 40% of the Macquarie Goodman Property Trust for $36,543,353. In this decision and the next, it gives a different shareholding for Macquarie Goodman Property Trust from the first decision: 10.2303% by minor shareholders in Australia, 6.4482% by the Macquarie Bank Limited of Australia, 3.3215% by the Goodman Family of Aotearoa and 80% by other minor shareholders in Aotearoa [Decision number 200510031].
Macquarie Goodman Management Limited, owned 43.82% by minority shareholders in Australia, 37.08% by the Macquarie Bank Limited of Australia, and 19.1% by the Goodman Family of Aotearoa has approval to acquire up to 40% of Macquarie Goodman Property Trust for $36,543,353 [Decision number 200510032].
After these transactions, Macquarie Goodman Property Trust will be 50.0071% owned in Australia, compared to the previous 17%.
The property involved in all three decisions is as follows:
24 hectares of freehold: · 10.2 hectares at 86 Plunket Road, Wiri, Auckland; · 2.7 hectares at 41 Nesdale Avenue, Manukau City, Auckland; · 0.68 hectares at 60-70 Stanley Street, Auckland; · 8.1 hectares at 810 Great South Road, Auckland; · 0.75 hectares at Don McKinnon Drive & Corinthian Avenue, Albany, Auckland; and · 1.6 hectares at 600-612 Great South Road, Greenlane, Auckland;
and 7.2 hectares of leasehold land at 60 Westney Road, Manukau, Auckland.
In each case, the OIC states:
The Macquarie Goodman Industrial Trust (MGI) is an Australian listed unit trust which invests in industrial properties in Australia and New Zealand. MGI is managed by Macquarie Goodman Funds Management Limited (MGFM), which is a subsidiary of Macquarie Goodman Management Limited (MGM). The securities in MGI and MGM have been stapled and trade as a single security referred to as the Macquarie Goodman Group (MGQ).
The Macquarie Goodman Property Trust (MGP) is a New Zealand listed unit trust which has various property investments in New Zealand. MGP is managed by Macquarie Goodman NZ Limited (MGNZ), which is a subsidiary of Macquarie Goodman Management Limited (MGM).
On 1 March 2004 MGP and MGI received consent, to enter into an agreement, through nominated parties, so that specified properties in both portfolios would be beneficially owned by MGI (53%) and MGP (47%) as tenants in common. The Applicant advised that the co-ownership arrangement was likely to lead to improved management of the portfolio, and a stronger structure for future growth. On 26 May 2004, the consent dated 1 March 2004 was varied so that the portfolio of properties would be beneficially owned by MGI (50%) and MGP (50%) as tenants in common.
It is proposed that MGI and MGP, through nominated parties, will enter into an agreement so that MGI will transfer to MGP its 50% beneficial interest in the portfolio (but excluding certain properties that have not been developed). The proposal is likely to rationalise and consolidate MGQ’s New Zealand investments. Future investment in the portfolio (excluding certain properties that have not been developed) by MGQ will be through a unit holding in MGP.
The proposal (and associated capital raising) is likely to result in an increase in New Zealand ownership compared to the existing level of overseas ownership. Bridgecorp Holdings buys Bristol Securities LtdBridgecorp Holdings Limited, owned 1.7% in Australia and 98.3% in Aotearoa, has approval to acquire the remaining shares in Bristol Securities Limited over and above the 24.17% it already owns for $91 from Medico Property Holdings Limited of Aotearoa. Bristol owns 50% of 2.9 hectares at 61-87 Cook Street, Auckland. Bridgecorp apparently needed the approval because it is incorporated in Australia, despite being overwhelmingly owned in Aotearoa. It is not clear why the price is a nominal one. The company is run by Rod Petrovic.
According to the OIC,
The Applicant, a company incorporated in Australia, proposes to exercise an option to acquire all the outstanding ordinary shares in Bristol Securities Limited (Bristol). The Applicant currently owns 24.17% of the ordinary shares in Bristol. Bristol’s principal asset is a 50% share in the freehold interest in the subject property.
The other 50% is owned by Auckland developer Jamie Peters’ Starline Group according to the New Zealand Herald (“Bridgecorp increases CBD stake”, by Anne Gibson, 4/5/2005, http://www.nzherald.co.nz/category/story.cfm?c_id=28&ObjectID=10123634). In our July 2004 commentary we reported that Petrovic and Peters had sold the property to 1st Class Baggage Limited, owned 50% by Duncan Bull and 50% by Douglas Rikard-Bell, both of Australia, for $30,000,000 through City West Limited and Sandela Holdings Limited of Aotearoa. Presumably that was not completed.
The OIC continues:
The subject property currently comprises mixed use buildings and carparking providing semi-industrial and retail space. City West Limited, a company associated with the vendor, acquired the subject property in 2003 with a view to developing a fully integrated development. To facilitate the development, City West Limited created a perpetually renewable leasehold interest to be vested in the eventual developer. To fund the acquisition an arrangement was entered into under which a subsidiary of the Applicant advanced the purchase price payable by subscribing for redeemable preference shares in Bristol, and Medico Property Holdings Limited granted an option, the exercise of which would enable the Applicant to acquire the shares in Bristol.
The Applicant, Bristol, and City West also agreed under the financing arrangement to cooperate to procure a developer to acquire the leasehold interest in the land and undertake the development. The Applicant agreed to procure its New Zealand subsidiary to provide preliminary project financing to the developer acquiring the leasehold.
The acquisition of the shares by the Applicant will enable the Applicant to access an agreed share of the development profits. If those profits were not available, then the increased credit risk relative to the rate of return would mean that any lending to the developer by the Applicant’s New Zealand subsidiary would be in breach of the good commercial practice covenants of a debenture trust deed issued by the intermediate holding company of the Applicant’s New Zealand subsidiary, to which the Applicant’s New Zealand subsidiary is a party and co-covenantor.
The proposed development of the property over a five to six year timeframe is likely to create a fully integrated mixed use 28,000 square metre urban development comprising approximately 4,000 square metres of retail space, 5,000 square metres of commercial space, a boutique hotel, approximately 1,000 residential apartments and 2,000 carparks. It is proposed that the land will be developed as an artistic and cultural precinct including open communal gathering space. [Decision number 200510033.] Wyuna Station freeholds 2700 ha., and given retrospective approval for US loanWyuna Station Joint Venture, which is owned 60% by Tusher Family Limited Partnership of the U.S.A. and 40% by John Darby of Aotearoa through Pisidia Holdings Limited, has approval to acquire 2,695.5 hectares of freehold situated at Wyuna Station, Glenorchy, Queenstown, Otago for $1,478,250 from The Crown of New Zealand. The station is part Recreation Reserve/Conservation Area.
Wyuna is an historic high country station overlooking the northern end of Lake Wakatipu. The decision records that the property includes conservation land, land “which is deemed a heritage or historic area”, and land “which is provided as a reserve, a public park, for recreation purposes, or a private open space”.
The land being acquired is part of a tenure review in which over 9,400 hectares of pastoral lease reverts to the Crown. The OIC states:
Wyuna Station currently comprises 29.5658 hectares of freehold land, 11,941.7412 hectares of Crown Pastoral Lease land and 202.1407 hectares of other land interests totalling 12,173.445 hectares. Following a tenure review under the Crown Pastoral Lands Act 1996, the Applicant proposes to acquire a freehold interest totalling approximately 2,695.5 hectares in Wyuna Station to be owned in conjunction with the 29.5658 hectares of freehold currently owned by the Applicant. The balance of Wyuna totalling approximately 9,448.3819 hectares will be retained in Crown control either as conservation areas or recreation reserves. [Decision number 200510038.]
Wyuna Station Joint Venture acquired Wyuna in 1999. The acquisition did not need OIC consent because the US interest was at that stage just 0.1% below the 25% threshold requiring approval. However the US partner did not apply for approval for a mortgage it held over the property, and at the same time as receiving the above 2005 consent, received a retrospective approval for the “interest in land” (mortgage) which it held without the required legal approval for those six years. The details are as follows. They refer to the Wyuna Station Joint Venture being owned 24.9% by the Tusher Family Limited Partnership: that was the case in 1999, but Tusher’s interest was increased to 60% in March 2000 (see our commentary for that month for further details).
Cabo Limited, owned by Tusher Family Limited Partnership of the U.S.A., has retrospective approval to acquire a 100% interest in the Wyuna Station, Glenorchy, Queenstown, Otago for $4,075,000 from Wyuna Station Joint Venture, which is owned 24.9% by the Tusher Family Limited Partnership, and 74.1% by John Darby of Aotearoa. Wyuna consisted then of 30 hectares of freehold, 11,942 hectares of leasehold and 0.4047 hectares of Licence.
And the details of the loan:
The Applicant has lent funds to the joint venture, for the purposes of settling the acquisition of the property and providing working capital. The loan is documented under a term loan agreement dated 10 June 1998 and secured by a mortgage dated 5 July 1999 registered against the certificate of title for the property. The Applicant did not seek consent to the acquisition of an interest as mortgagee in the land.
Since 1999, the joint venture “implemented a farm development programme which has resulted in increased diversification of the land from traditional sheep and cattle farming to include a deer herd.” [Decision number 200510037.] US led company buys Butterfly Bay, Whangaroa land for luxury resortCerulean Properties LLC, has approval to acquire 41 hectares at Butterfly Bay, Whangaroa, Northland for a suppressed amount from Julia Kennedy-Till Family Trust, SDTT Family Trust, and Flying Carpet Family Trust of Aotearoa. The land includes or adjoins the foreshore; and includes or adjoins land that is provided as a reserve, a public park, for recreation purposes, or a private open space.
Most of the details of the purchase were initially suppressed, but released on appeal in April 2006. The price continues to be suppressed.
Cerulean Properties is owned as follows: 30% – Christen Bartelt, U.S.A., 30% – B Scott Hart, U.S.A. 6% – Trudy Montgomery, U.K. 5% – Andi Neugarten, South Africa 5% – Lindsay Baggen, Australia 5% – Kristina Baker, U.S.A. 5% – Mark Mance, U.S.A. 5% – Rosetta Resorts LLC, U.S.A. 4% – Erika Smith, U.S.A. 3% – Jasna Stefanovic, Croatia 2% – Kathryn Keown, U.S.A.
According to the OIC,
The Applicant is a privately held resort development company incorporated in San Francisco, California. It intends to acquire the property in Butterfly Bay, Whangaroa, for the purposes of building and operating a luxury resort and destination spa, providing weeklong stays to guests. The resort will have a maximum capacity of 180 guests at any one time. The resort will consist of approximately 100 individual accommodation units, with an additional 8-14 freestanding buildings, two to four tennis courts and two swimming pools. There will be several one-story housing units for live-in staff members towards the back of the property. The resort will reflect traditional Maori architecture through the use of natural building materials, such as wood and stone. The overall goal is to keep the guests and anyone passing by boat from noticing the buildings; the natural vegetation and topography will be the dominating attraction. Approximately 75% of the land will be retained in secondary bush.
The resort will offer a core health programme based on Bikram yoga, macrobiotic cuisine and the Feldenkrais method, complemented by a full range of spa services, as well as a select range of resort activities (such as hiking, tennis, biking and diving) and sightseeing excursions.
Approximately 90% of the property is presently covered in secondary bush. The property currently has two single-family houses, which will be removed prior to the construction of the resort. Since 1991, the property has operated as a small scale tourist retreat, providing homestay accommodation for approximately 40 bed nights per annum on average and is otherwise used for recreational holiday purposes and by the beneficiaries of the three vendor trusts.
[Decision number 200510034.] More Waihi land for Martha MineWaihi Gold Company Limited, owned by Newmont Mining Corporation of the U.S.A., has approval to acquire 0.4047 hectares at 8 Moore Street, Waihi, Coromandel for $282,000 from Barry Thomas Townsend and Pauline Dorothea Townsend of Aotearoa. According to the OIC:
The proposed acquisition relates to a residential property in the immediate vicinity of other land owned by the Applicant in association with the Applicant’s Martha Mine operations. The Applicant proposes to acquire the subject property in connection with the proposed Favona Underground Project as the property is affected by current and future planned exploration in the vicinity of Favona. The acquisition of the subject property is likely to establish a buffer zone surrounding the Favona project. The Favona project involves a significant new investment for the purposes of an underground gold mining operation. There will likely be few surface effects apart from the air vent shaft, the access portal and the infrastructure required to service the underground workings and transport the ore to the existing processing plants. The land is subject to Exploration Permit 40-645, and adjacent to the Favona Mining Permit 41-808.
The last such purchases were in January 2005. See our commentary for that month for further details. [Decision number 200510043.] Decision on vineyard lifestyle development near Alexandra released a year laterIn a decision whose details were initially almost entirely suppressed, and continued to be suppressed on appeal but released in April 2006, Remarkable Estates Limited, owned in the U.K. by Mathew Spence and Dennis Riddick, has approval to acquire 477 hectares at McArthur Ridge, Springvale Road, Alexandra, Otago, and a Memorandum of Encumbrance and Profit a Prendre relating to the same land, for a still suppressed amount from Central Otago Pinot Noir Estates Limited.
Central Otago Pinot Noir Estates Limited is owned 40.9% by Peter John Cordner, 15.9% by Russell Checketts, 9.1% by Michael Joseph Daly, 8.2% by The Terraces Trustee Company Limited as trustee for Robin Schulz and Dennis White, 6.8% in Aotearoa by Robert and Janice Thayer and James Kirkland, 4.3092% by Graeme McVicar, 4.1% by Paul Anthony Tapper and Annette Christine Tapper, 2.6% by Brian Wilfred Gorrie and June Margaret Gorrie, 2.4908% by Roy Denton, 1.4% by Nigel Kenneth Milne, 1.4% by Robert Pitcaithy and Lynette Pitcaithy, 1.4% by John Cecil Davidson, and 1.4% by Jack Phillip Goldsmith, all of Aotearoa.
Our commentary of a decision in June 2005 gives some explanation of this – see our commentary for that month.
According to the OIC,
Central Otago Pinot Noir Estates Limited (COPNEL) acquired 817.694 hectares of land, near Alexandra, known as McArthur Ridge, in December 2002. COPNEL has commenced the development of a Pinot Noir vineyard with the intention of selling the land and vineyard following a subdivision of the land into at least 60 allotments, in three stages, ranging in area from 4 to 19 hectares on which individual dwellings can be constructed. COPNEL has reserved a total of 16 allotments (totalling 107.5 hectares) for separate sale. The sale of 8 COPNEL allotments have settled to date. A further four infrastructure allotments (totalling 33.798 hectares) have been created for irrigation dams and associated infrastructure. The sale of the subdivided allotments will fund the set up and development costs incurred by COPNEL.
The Applicant proposes to acquire 6 Stage 1 allotments (of which one allotment is the subject of a resource consent application to divide into two allotments) totalling 53.9175 hectares, 12 Stage 2 allotments totalling 121.971 hectares, the 31 Stage 3 allotments totalling 267.216 hectares (a total of 50 allotments), and a share in the infrastructure allotments from COPNEL.
Pursuant to an Agreement with COPNEL, the Applicant proposes to purchase the vines and the vineyard assets and infrastructure, market and sell the allotments to third parties, subject to a profit a prendre in favour of Applicant allowing the Applicant to harvest the grapes on the allotments, purchase the remaining lots not sold to subsequent purchasers, purchase a share in the infrastructure allotments held together with the owners of COPNEL's allotments, and take over the management responsibilities of the development via purchase of shares in the management company. It is likely that one allotment will be retained by the Applicant. A memorandum of encumbrance (and/or land covenant) will be registered against the allotments, the provisions of which are designed to ensure that the character of the development as a premium lifestyle development will be maintained.
COPNEL had entered into an agreement with McCashin Wines Limited (McCashin) pursuant to which McCashin has been contracted to manage the vineyard and to purchase the grapes from the vineyard. This agreement has now been assigned to Central Viticulture Limited (CVL), a company owned and managed by parties associated with COPNEL and the management company established by COPNEL, McArthur Ridge Management Limited. It is also proposed that Simon Holding will have an investment in CVL. A site has been earmarked for a wine processing plant to process grapes from the development and other properties in the plant to process grapes from the development and other properties in the Central Otago district. The acquisition by the Applicant is likely to provide COPNEL with the certainty required to enable the completion of the proposed development.
[Decision number 200510036.] Other rural land sales· Donald Michael Sanders (U.S.A. 33.33%), Norman Call Frazier (U.S.A., 33.33%) and Sean Robin Kennedy (Aotearoa, 33.34%) have approval to acquire 49 hectares at State Highway 1, Kauri Flat RD, Awanui, Northland for $1,367,437 from Patricia Barbara Boyd and Colleen Violet Gleeson of Aotearoa. They propose to prepare and plant an avocado orchard on the property, which has “45 plantable hectares”, during 2005 and 2006. [Decision number 200510035.] · Christopher Joseph Reid and Sara Caroline Reid of the U.K. have approval to acquire 1.1 hectares at 72A Ironbark Road, Kerikeri, Northland for $575,000 from Brent Warren Hewitt and Josina Adriana Maria Hewitt of Aotearoa. The OIC states: “The Applicants are applying for New Zealand permanent residency under the Skilled Migrant category and propose to acquire the subject lifestyle property as a permanent residence. Dr Reid is a registered medical practitioner from the United Kingdom who has taken up employment in New Zealand as a rural general practitioner. The Applicants are demonstrating their commitment to New Zealand through applying for and taking up New Zealand permanent residency.” [Decision number 200510042.] · Great Lake Tomatoes Limited, owned 50% each by Adrianus Wilhelmus Maria Botman of Argentina and Antonius Cornelius Zwetsloot of Aotearoa, has approval to acquire 76 hectares at 3057 Broadlands Road, RD 1, Reporoa, Bay of Plenty for $2,850,000 from Stay Green Farms Limited owned by Graham John Marshall and Mary Jane Marshall. According to the OIC, “the Applicant is undertaking a horticultural development growing truss tomatoes for the Australian market. Initially the development will comprise a 5 hectare ultra modern glasshouse operation incorporating the latest Dutch technologies. In the longer-term up to 15 hectares is likely to be developed growing truss tomatoes. It is proposed that the part of the property not utilised for horticultural purposes will continue to operate as a dairy farm.” [Decision number 200510039.] · Agape-Holistic Retreat Corporation Limited, owned by Peter Ferreira of Germany, has approval to acquire 459 hectares at 1257 Makaretu Road, Te Karaka, Gisborne for $2,475,000 from Shakahn Kukulcan and Jaguar Kukulcan of Aotearoa. The OIC states: “The vendors have owned the property, known as Mahutai Park, for nine years and during that period have planted approximately 12,000 ornamental trees including hundreds of fruit and nut trees in 5 orchards, and have taken steps to preserve the natural features of the property. It is claimed that the property has artesian spring water of rare purity. The vendors have stated that the improvements made to the property would be of little value to any potential farmer purchasers. Moreover, if the arboretum and native forest were opened to grazing animals, the special conservation features of the property would be likely to be prejudiced. The Queen Elizabeth the Second National Trust has stated that the property has very high ecological values. The Applicant’s shareholder, who intends to reside permanently in New Zealand, is a biophysicist and has undertaken scientific and medical research into spring water sources to assess their biophysical and medical qualities. He is a best-selling author of a book called ‘Water and Salt – the Essence of Life’ and regularly gives speeches, seminars, workshops and appears on television. It is proposed to acquire the property for the purpose of continuing his scientific research in the areas of water and salt and (together with his partner), his therapeutic work with horses. It is intended to develop a unique holistic and scientific centre to research the natural spring waters on the property for their therapeutic benefits and to establish a natural holistic accommodation retreat/conference centre. The Applicant’s shareholder is demonstrating a commitment to New Zealand through applying for and intending to take up New Zealand permanent residency and proposing to enter into a Queen Elizabeth the Second National Trust open space covenant.” [Decision number 200510040.] · Mohaka Olive Oils Limited has approval to acquire
In both cases the OIC states: “The Applicant proposes to acquire the subject land and the adjoining land. The Applicant has been formed to enable the vendors and the overseas persons to jointly further develop and expand the olive grove contained on the subject land. The olive grove has been established during the last two years and is approximately 70 hectares in area. The Applicant proposes to plant a further 50 hectares on the adjoining land in olive trees in 2008 and further develop the olive groves on both properties in order to produce high quality olive oils for the export market.” Mohaka Olive Oils is owned as follows: 12.75% Jake F Howton, 12.75% John W Howton, 12.75% James A Howton, 10.404% Jimmie F Howton, and 2.346% Jessica L Howton all of the U.S.A.; and 21.315% Michael Noel Esposito and Kathryn Anne Esposito and John Stuart Thompson as trustees of the Kemco Trust, 12.25% Anavi Trust, 9.065% Richard Alexander Gaffkin and Ivana Gaffkin and John Stuart Thompson as trustees of the Anavi Trust, 3.92% John Regis Smith, and 2.45% Robert Louis White and John Stuart Thompson (all of Aotearoa, and from whom the properties are being purchased). The effect is that the US investors are taking a 51% share in the properties. · Sukhraj Singh Dhillon and Balraj Kaur Dhillon and Hansen & Bate Trustee Company Limited as trustees of the S & B Dhillon Family Trust of Canada have approval to acquire 9.3 hectares at Dartmoor Road, Puketapu, Napier, Hawkes Bay for $618,750 from Rajpal Singh Dhillon and Priscilla Dhillon and David John Porteous and trustees of the Dhillon Family Trust of New Zealand. According to the OIC: “Mr SS and Mrs BK Dhillon propose to relocate to New Zealand and reside permanently. They have lodged a Long Term Business Visa application with the New Zealand Immigration Service. Mr SS and Mrs BK Dhillon have formed a family trust to acquire up to 100% of Dhillon Fruit Growers Limited, a company that owns the subject orchard property. The shareholding of Dhillon Fruitgrowers Limited is currently held by RS (brother of SS Dhillon) and P Dhillon 76% and the Applicants 24%. The subject property is an established pipfruit orchard growing a variety of apples and pears. Mr and Mrs Dhillon are demonstrating a commitment to New Zealand through applying for and intending to take up New Zealand permanent residency.” [Decision number 200510041.] · Van der Werf Farms Limited, owned by Sjoerd Tjitte Bonifatius van der Werf of the Netherlands as trustee for the van der Werf Trust, has approval to acquire:
The OIC states in both cases: “The Applicant received consent on 16 November 2004 to acquire an 80.9372 hectare dairy farm situated near Edendale, Southland. The Applicant proposed to increase production from the property by utilising the more intensive European/Dutch dairying systems whereby large wintering barns or sheds or feedlot platforms are utilised to feed stock on a more intensive basis.” See our commentary for November 2004 for further details of the previous decision. Summary statisticsAll investments The value of investment approved in the year to March 2005 is lower than for the previous March year, but the net value (i.e. disregarding sales from one overseas investor to another, and discounting part New Zealand ownership of the assets) is somewhat higher. By far the greatest part of the value of the approvals is for sale from one overseas investor to another.
*In addition there was one retrospective approval granted during the month (for the Wyuna Station) involving a gross consideration of $4,075,000 (an increased overseas investment of $3,060,325). This involved a freehold land area of 30 hectares and 11,942 hectares of leasehold.
Investment involving land Sales of land approved by the OIC during the years to March have fallen dramatically by area. Refusals (above) are still zero for the year.
*In addition there was one retrospective approval granted during the month (for the Wyuna Station) involving a gross consideration of $4,075,000 (an increased overseas investment of $3,060,325). This involved a freehold land area of 30 hectares and 11,942 hectares of leasehold.
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Compiled by: Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
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