June 2006 decisions

One application refused: purchase of 7 ha. Hawkes Bay vineyard

Transpacific buys Waste Management New Zealand

More aged care to Investment companies: Macquarie buys in Motueka …

… and Elizabeth R in Stratford …

… and JB Were buys 28.5% of Vision Senior Living

Cedenco Foods acquires Circle Pacific Limited

Restructuring of US/Taiwan ownership of Te Kuiti meat processor UBP

Leasehold land bought for storing cars

TrustPower buys land for Arnold Valley Hydro-electric Power Scheme

AMP investors acquire share in Matariki Forests, owner of 92,000 ha of forests

Land for wine

Jacks Point Ltd acquires further land for $100 for Queenstown development

Five Mile Holdings takeover of Gardez includes 8 ha. in Frankton, Queenstown

US corporation buys Glazebrook Station, Waihopai Valley, Marlborough

Other rural land sales

Summary statistics

One application refused: purchase of 7 ha. Hawkes Bay vineyard

The OIO has refused an application by Michael William Longstreth and Patricia Ann Longstreth of the U.S.A. to acquire 7 hectares at 211 Rochfort Road, RD14, Havelock North, Hawkes Bay for $990,001 from Glen Bruce Smith and Susan Mary Smith of Aotearoa.

According to the OIO,

The Applicants propose to acquire the subject property and expand the current area of the land planted in grape vines and lavender. The existing vineyard comprises 0.5 hectares, planted 5-6 years ago, containing Merlot, Cabernet Sauvignon, and Sangiovasi vines which are either blended for processing by the vendor or sold to other wine makers. The Applicants propose to initially double the current production of the property by increasing the planted area of the vineyard from 0.5 hectares to 1 hectare and the lavender grove from 0.75 hectares to 1.5 hectares and in the medium term increase the production by more than double by utilising any other area of land that could be economically planted in grapes.

The Overseas Investment Office is not satisfied that the proposed benefits resulting from the proposed investment are likely to be substantial and identifiable.

[Decision number 200610075.]

Transpacific buys Waste Management New Zealand

Transpacific Industries Group Limited, owned 86.5% in Australia, 12.69% in Malaysia, and 0.81% by “various overseas persons”, has approval to acquire “property being rights and obligations of Waste Management N.Z. Limited” including 3,734 hectares of freehold land and 5 hectares of leasehold land (further details below) for $846,180,001 from Waste Management NZ Limited. Waste Management was owned 75.47% in Aotearoa, 16.72% in Australia, 3.1% in the U.S.A., 2.62% in Hong Kong, and 2.09% by “various overseas persons”.

The OIO states:

Transpacific Industries Group Limited (TPI) proposes to amalgamate with Waste Management N.Z. Limited under the process contained in Part XIII of the Companies Act 1993. Upon the amalgamation becoming effective, Transpacific Industries Group (NZ) Limited (a wholly owned subsidiary of TPI) will succeed to all the rights and obligations of Waste Management by operation of law and Waste Management then will cease to exist, with its shares being cancelled. On 17 May 2005 [sic], TPI’s proposal was approved by 97.3% of the votes cast (in person or by proxy) by Waste Management’s shareholders at Waste Management’s annual meeting. Waste Management’s shareholders will receive a payment for their shares from TPI.

TPI is listed on the Australian Stock Exchange, and has business operations in Australia and New Zealand. TPI operates three principal divisions: waste management and recycling services, industrial solutions, and commercial vehicles. Waste Management’s business activities include waste collection, recycling, landfill and refuse transfer station design and operation and gas extraction and gas to energy generation systems. The proposed transaction is likely to further complement and expand TPI’s operations in New Zealand.

Originally owned by the notorious US company, Waste Management (WMX) (see for example our commentary on the April 1999 decisions), Waste Management New Zealand was later listed on the New Zealand Stock Exchange. It describes itself on its web site (http://www.wastemanagement.co.nz/wam/company-overview/en/company-overview_home.cfm, accessed 21/1/07) as “the largest waste management and resource recovery service provider in New Zealand.” It had expanded aggressively into Australian operations in its own right and had over 900 employees and contractors and over 400 vehicles between the two countries.

Its subsidiaries in Aotearoa are listed as: Allens United Septic Tank Cleaning Services (Whangarei) Limited, Budget Bins Limited, General Rubbish Collection Limited, Pacific Environmental Partners Limited, Recycle New Zealand Limited, Waste Care Limited, Sunshine Garden Bag and Bin Company Limited, Waste Disposal Services Limited, and Waste Management Asia Limited. In Australia they are Waste Management Pacific Pty Limited and Waste Management Pacific (SA) Pty Limited. In addition it has a number of joint ventures, including with Canterbury local governments (Canterbury Waste Services).

The land involved in the merger/takeover is as follows:

·        3,734 hectares of freehold comprising:

·        223 hectares at Horseshoe Bush Road, Dairy Flat, 25 Inlet Road, Papakura, 5-9 Miami Parade, Pikes Point, Onehunga, and 81 Captain Springs Road, Onehunga, Auckland;

·        0.8 hectares at 35 Ferguson Place, Rotorua, Bay of Plenty;

·        123 hectares at 818 Wanganui Road, Marton, Manawatu;

·        0.4055 hectares at 97-99 Port Road, Lower Hutt, Wellington;

·        3,330 hectares at 554 Mt Cass Road and Washcreek Road RD3, Amberley, Canterbury; and

·        57 hectares situated at Horseshoe Bush Road, Dairy Flat, North Auckland; and

·        5 hectares of leasehold comprising:

·        2.2 hectares at Horseshoe Bush Road, Dairy Flat, Auckland;

·        1.5 hectares at 2 Daphne Street, Te Awamutu, Waikato; and

·        1.2 hectares at 21 Birmingham Road, Paraparaumu, Wellington.

Some of the land is “used as a reserve, as a public park, for recreation purposes, or as open space; … is or includes land held for conservation purposes under the Conservation Act 1987; adjoins a scientific, scenic, historic, or nature reserve; … adjoins an esplanade reserve, esplanade strip, recreation reserve, a road or a Maori reservation, that adjoins the sea or a lake.”

[Decision number 200610073.]

More aged care to Investment companies: Macquarie buys in Motueka …

Retirement Care (NZ) Limited, owned 50% by Macquarie Specialised Asset Management Limited “as responsible entity for” Macquarie Global Infrastructure Fund IIA, and 50% by Macquarie Specialised Asset Management 2 Limited “as responsible entity for” Macquarie Global Infrastructure Fund IIB, both of Australia, has approval to acquire 2.9 hectares in two blocks at 1 Edgewood Crescent, Motueka, Nelson for $4,600,000 from Motueka Rest Homes Limited and Woodlands Retirement Village Limited, owned 11.37% in the U.S.A. by Colin Fry, 64.35% by Ross Goulton Fry and Janice Beverley Fry, 16.03% by Tom Bill, 2.66% by Frederick John Grieve, 2.66% by Judith Flora Goodman, 1.89% by Terry Bradley, 1% by Gwen Bunn, and 0.04% by George Bunn, all of Aotearoa. The land includes or adjoins “a reserve, a public park, or other sensitive area”.

Although the approval is only for the acquisition of land, in fact Macquarie bought the rest home, hospital and retirement village on the land: according to the OIO,

The proposed acquisition of the Woodlands Retirement Village situated at Motueka represents a continuation of the current focus of certain Macquarie Bank funds on the aged care sector and is likely to complement previous acquisitions in the aged care sector.

The purchase of the aged care operation does not require OIO approval because the purchase price, reported to be $4.6 million, is well under the OIO’s $100 million threshold.

This is part of the continuing takeover of aged care facilities by mainly Australian investment companies. See for example our commentaries in February 2006 and December 2005.

[Decision number 200610077.]

… and Elizabeth R in Stratford …

ElderCare Life Care Limited, owned 50% by Macquarie Specialised Asset Management Limited “as responsible entity for” Macquarie Global Infrastructure Fund IIA, and 50% by Macquarie Specialised Asset Management 2 Limited “as responsible entity for” Macquarie Global Infrastructure Fund IIB, both of Australia, has approval to acquire 1.1 hectares of freehold at 30-33 Elizabeth Grove, Stratford, Taranaki for a suppressed amount from Elizabeth R Hospital and Resthome Complex 2003 Limited, owned 100% in Aotearoa by Thomas David Brankin. The land includes or adjoins “a reserve, a public park, or other sensitive area”.

Again, this is in fact a purchase of an aged care facility. According to the OIO,

The proposed acquisition of the Elizabeth R aged care facility situated at Stratford represents a continuation of the current focus of certain Macquarie Bank funds on the aged care sector and is likely to complement previous acquisitions in the aged care sector. The Elizabeth R aged care facility includes an aged care resthome and hospital and retirement apartments.

The proposal is likely to result in added market competition and efficiencies in the aged care and retirement village industries in New Zealand. This is likely to result in enhanced domestic services for persons requiring aged care and retirement village services.

[Decision number 200610088.]

… and JB Were buys 28.5% of Vision Senior Living

JBWere (NZ) Private Equity Limited as manager of Special Managed Investment Company No. 90 Limited, owned in Aotearoa, has approval to acquire up to 28.5% of the shares of Vision Senior Living Limited, including 16 hectares freehold comprising

·        2.6 hectares at 15 Sel Peacock Drive, Henderson, Auckland;

·        5.2 hectares at Ken Browne Drive, Hamilton, Waikato; and

·        8.3 hectares at Parton Road, Papamoa, Tauranga, Bay of Plenty;

and 4.4 hectares of leasehold at Oakridge Drive, Kerikeri, Northland, for $20,000,000 from existing shareholders of Vision Senior Living Limited, which was owned 35.305% by Ronald Douglas Anderson, 35.305% by Robert Athol Foster, 25.1% by Peter John Bourke, and 4.29% by Alexander Foster, all of Aotearoa.

The OIO states:

JB Were (NZ) Private Equity Limited on behalf of private equity funds Hauraki Private Equity No.2 Fund Limited and Special Managed Investment Company No.90 Limited, proposes to acquire 28.5% of Vision Senior Living Limited (VSL). VSL owns and operates retirement villages situated at Henderson and Botany Downs, Auckland, Forest Lake, Hamilton, Papamoa, Tauranga, and Kerikeri. The proposal will provide funding to VSL for the continued development and acquisition of retirement villages.

[Decision number 200610071.]

Cedenco Foods acquires Circle Pacific Limited

Cedenco Foods, owned by Frederick Scott Salyer of the U.S.A., is acquiring Circle Pacific Limited. It appears that this acquisition does not require OIO approval but the consequent acquisition of some land owned by Circle Pacific does require approval. Cedenco Foods has approval to acquire 0.65 hectares of freehold and 0.65 hectares of leasehold at 9-13 Railway Road, Whakatu, Hawkes Bay for $1,600,000 from Circle Pacific Limited, owned 100% in Aotearoa by Kay Peterson, Raymond Lance Peterson and Abby Josephine Peterson and Andrew Ross Wares as trustees for the Orlando Trust. It includes or adjoins land “that includes a historic place, historic area, wahi tapu, or wahi tapu area” or “a reserve, a public park, or other sensitive area”.

According to the OIO,

Cedenco Foods (Cedenco) proposes to acquire the business and assets of Circle Pacific Limited (Circle Pacific). As part of the transaction Circle Pacific will procure that the landlord (a company associated with Circle Pacific) will grant a new lease to Cedenco. Under the lease, Cedenco will have an option to purchase the land at market value at any time prior to 12 months before the expiry of the initial three year term of the lease. Each lease will also grant Cedenco a right of first refusal to purchase the land if the landlord wishes to sell it, for so long as Cedenco is a tenant.

Cedenco’s major business activities are processing vegetables and fruits into powders, aseptic pastes and purees, block frozen purees, UHT purees and free flow frozen products in New Zealand. Cedenco sells products to mainly multinational companies who use Cedenco products in their own products. Following Cedenco’s 2005 acquisition of Sunrise Coast New Zealand Limited, Cedenco is now also a packer, trader and marketer of fresh and processed fruit and vegetables, and produces some packaged food products for retail markets.

Circle Pacific is an integrated producer, packer, exporter and supplier of high quality fresh and processed fruit and vegetables from New Zealand. Circle Pacific is also a co-packer of processed fruit and vegetables on behalf of other marketers. The acquisition by Cedenco will provide a production base in a new geographical region and enable it to process a range of fruit and vegetables not currently processed by Cedenco.

[Decision number 200610076.]

Restructuring of US/Taiwan ownership of Te Kuiti meat processor UBP

Prime Hill International Co. Limited, owned 40% by Ben Tzu-Pai Lin, 30% by Bryan Tzu-Shu Lin, and 30% by Patty Tzu-Chou Lin, all of the U.S.A., has approval to acquire UBP Limited, including 10 hectares at 18 Waitete Road, Te Kuiti, Waikato for a suppressed amount from Skybright International Co. Limited, owned 30% by Patty Tzu-Chou Lin of the U.S.A., and 47% by Jack Lin, 20% by Heui-Lan Wu, 1% by Tony Wo, 1% by Henry Shiau, 1% by Seng-Man Lin, all of Taiwan.

The OIO states:

UBP Limited (UBP) carries on the business of meat processing and meat export at its premises in Te Kuiti, on which it operates an abattoir. The Applicant proposes to acquire 100% of the shares in UBP from Skybright International Co. Limited of Taiwan (Skybright). The proposal by Prime Hill International Co. Limited to acquire all of the shares in UBP is part of a restructure of UBP. The restructure will secure the current and future funding of UBP so that UBP’s plant can be maintained and expanded.

[Decision number 200610070.]

Leasehold land bought for storing cars

Custom Fleet (NZ) Limited, owned in Australia by National Australia Bank Limited, has approval to acquire 2.0 hectares of leasehold at 50 Morrin Road, Panmure, Auckland for $4,473,901 from Land Pac Limited, owned 66.66% by Christopher Sai Louie, 16.67% by Neal Medhurst Nicholls, and 16.67% by Wayne Leslie Douglas, all of Aotearoa. The land includes or adjoins “a reserve, a public park, or other sensitive area”.

According to the OIO,

Custom Fleet (NZ) Limited has entered into an agreement to acquire a sub-leasehold interest in the subject land. Custom Fleet is the specialised vehicle leasing and fleet management arm of the National Australia Bank Group of companies providing fleet leasing and fleet management services to corporate, government and small business customers. Custom Fleet proposes to utilise the land for the storage and tendering for sale of ex-leased vehicles.

This appears to be a retrospective approval.

[Decision number 200610081.]

TrustPower buys land for Arnold Valley Hydro-electric Power Scheme

TrustPower Limited, owned 23.77% in the U.S.A. by Alliant Energy Corporation, and 35.18% by Infratil Limited, 28.56% by Tauranga Energy Consumers Trust, and 12.49% by minority shareholders, all of Aotearoa, has approval to acquire 24 hectares of leasehold situated at Arnold Valley Road, Grey Valley, West Coast for a suppressed amount from Kenneth David Lancaster and Linda Lancaster of Aotearoa. The land includes or adjoins land “held for conservation purposes”.

The OIO states:

The Applicant (TrustPower) proposes to acquire the subject land as part of the development of the Arnold Valley Hydro-electric Power Scheme (Arnold Valley Scheme), which will comprise a new intake dam, canal, flumes, head pond, regulation pond, and a power station, situated at the Arnold River on the West Coast of the South Island. TrustPower currently owns and operates an existing hydro-electric power station on the Arnold River, which will be decommissioned and demolished following construction of the Arnold Valley Scheme.

The subject property is integral to the Arnold Valley Scheme with parts of the property to be used for penstocks and access roads. The proposed power station will also be built on part of the property.

Following the acquisition of the leasehold interest in the subject property TrustPower proposes to purchase the freehold title from Grey District Council. The acquisition of the freehold interest will be the subject of a further application to the Overseas Investment Office. TrustPower intends to rent out the subject land as a lifestyle property until construction of the Arnold Valley Scheme commences which could be in up to 7 years time. Following construction of the scheme it is likely that the portion of the subject property not required as part of the scheme will be on sold.

[Decision number 200610087.]

AMP investors acquire share in Matariki Forests, owner of 92,000 ha of forests

The AMP Investors in Matariki Forests, owned 89.1381% in Australia, 5.34% in Japan, 1.4668% in the U.K., 0.2157% by Various overseas persons, and 3.8395% in Aotearoa, has approval to acquire up to 58.35% of the shares in Matariki Forests Australia Pty Limited “comprised as to 25.17% by AMP Life Limited, 30.06% by the Infrastructure Equity Fund and 3.12% by the Global Infrastructure Fund” for $134,000,000 from existing shareholders in Matariki Forests Australia Pty Limited other than SAS Trustee Corporation. These are owned 71.38% in Australia by Deutsche Asset Management (Australia) Limited as manager of RREEF Infrastructure Investments, 27.78% in the U.S.A. by Rayonier Inc, and 0.84% in Aotearoa by Cameron & Company Limited.

Matariki owns 78,617 hectares of freehold and 13,771 hectares of leasehold in Bay of Plenty/Coromandel, Gisborne/Hawkes Bay, Manawatu, Nelson/Marlborough, Northland, Otago, and Southland,

According to the OIO,

The AMP Applicants wish to acquire the investment for the following reasons:

(a)     the opportunity to invest long term equity in an established and diversified New Zealand plantation forest estate alongside experienced institutional investors and with an experienced forest manager (Rayonier New Zealand Limited (RNZ)); and

(b)     to provide exposure to a diversified portfolio of forest assets in regard to geographic region, markets and customer bases. In addition, investment alongside the current shareholders would provide the proposed investors with alignment of interests in terms of a long-term equity hold position.

In fact it appears that AMP acquired only 35% for the $134 million.

Matariki bought the 92,000 hectares from Carter Holt Harvey. OIO approval was given in August 2005. See our commentary for that month for further details.

[Decision number 200610084.]

Land for wine

·      Van Martin Leichter and Krisahn Costas Williams of the U.S.A., have approval to acquire 16.4 hectares at Pomona Road, Ruby Bay, Nelson for $1,875,000 from Peter Albin Copp and Marion Kathleen Copp of Aotearoa. According to the OIO, “The Applicant proposes to acquire the subject property to undertake a redevelopment of the land into a productive Sauvignon Blanc vineyard and avocado orchard. The land currently contains approximately 3 hectares of apple orchard that previously formed part of a larger apple orchard operated by the vendor.” [Decision number 200610074.]

Jacks Point Ltd acquires further land for $100 for Queenstown development

Jacks Point Limited has approval to acquire

·        24 hectares of leasehold at State Highway 6 (Frankton-Kingston), Queenstown, Otago for $99 from Henley Downs Holdings Limited, owned 50% in Singapore by Brian Chang, and 50% in Singapore by Pei-Ru Alice Lee as trustee for Fong Wei Heng. The OIO states: “This transaction is for JPL to lease 24 hectares of land from the neighbouring developer, Henley Downs Holdings Limited, in order to complete the development of the proposed golf course. Seven holes of golf will be developed on the subject leased land.” [Decision number 200610068.]

·        0.4 hectares of freehold at Woolshed Road, Queenstown, Otago for $1 from Dickson Stewart Jardine and Jillian Frances Jardine, The JF Jardine Trust and The DS Jardine Trust, all of Aotearoa. The land adjoins land which is a reserve, a public park, or other sensitive area. The OIO states: “JPL intends to acquire approximately 0.4 hectares of adjoining land to enable convenient siting of a road bordering the JPL property and the neighbouring property owned by Henley Downs Holdings Limited. The road will provide access to the Jacks Point development and was always part of the Master Development Plan, but the exact location had not been determined at the time of the 2001 acquisition. The proposal is likely to facilitate access to the Jacks Point development.” [Decision number 200610072.]

Without explanation, the OIO gives two different ownerships for Jacks Point Ltd: respectively,

·        In the first decision it is recorded as being owned 60% in Hong Kong by SEA Holdings Limited, 30% in Aotearoa by Pacific Resort Holdings Limited, and 10% in Aotearoa by Donald Fletcher;

·        In the second decision it is recorded as being owned 25.8% in Hong Kong by SEA Holdings Limited, and 25% by Michael Owen Coburn, 25% by John Gerald Darby, and 24.2% in Aotearoa by Donald Fletcher, all three of whom are of Aotearoa.

In both cases, according to the OIO,

On 11 December 2001, consent was granted to Jacks Point Limited (JPL) to acquire 403.589 hectares of land situated at Jacks Point in Queenstown. The Jacks Point development will include an 18 hole championship golf course, a lodge, resort accommodation, residential homes, a club house, gym, equestrian facilities, village and business centre.

See our commentary for December 2001 for further details.

It appears that the 24 hectare approval is retrospective.

Henley Downs and its owners have made extensive investments in the Queenstown area. See for example our commentary for April 2005 for further details. There appears to be a close relationship between them and the purchasers, given the token prices paid for the two properties.

Five Mile Holdings takeover of Gardez includes 8 ha. in Frankton, Queenstown

Five Mile Holdings Limited, owned 13.52% by “various overseas persons”, 9.53% in Australia, and 76.95% in Aotearoa has approval to acquire up to 100% of the shares of Gardez Investments Limited, including 8 hectares at SH 6, Frankton, Queenstown, Otago for “up to $33,340,400 (comprising cash and mandatory convertible notes)” from existing shareholders in Gardez Investments Limited, owned 34.76% in Australia, 30.57% in the U.S.A., 5.31% in the U.K., 3.89% in Singapore by Singapore Public, 3.13% by “various overseas persons”, 2.95% in Japan, 2.57% in Hong Kong, 2.01% in Canada and 14.81% in Aotearoa.

The OIO states:

Five Mile Holdings Limited, a wholly owned subsidiary of Property Ventures Limited (PVL), is in the process of undertaking a full takeover of Gardez Investments Limited (Gardez) pursuant to the Takeovers Code. Part of the consideration for the takeover offer is the issue of mandatory convertible notes in PVL, converting to shares in PVL on 30 June 2008, to the shareholders in Gardez.

PVL is an unlisted public company that undertakes commercial and residential property acquisition, development, and sale. PVL is currently undertaking or is proposing developments situated in Christchurch, Invercargill, Lake Te Anau, St Arnaud, Frankton, Gibbston, and Paraparaumu. Gardez owns a development property situated at Frankton. The takeover of Gardez by PVL’s wholly owned subsidiary, Five Mile Holdings Limited, provides an expansion of PVL’s development activities in the Frankton, Queenstown area. The land owned by Gardez is adjacent to PVL’s land.

All the individuals with control of the overseas person are New Zealand citizens.

In June 2003, The OIC gave approval to Gardez to acquire 7.8 hectares at Ladies Mile Road, State Highway 6, Queenstown, Otago for $15,750,000 from Ladies Mile Holdings Limited of Aotearoa. We noted then that Gardez was managed by Auckland-based The Montpellier Group, which was headed by Christchurch property investor, Dr Dolf de Roos, who also headed associated property development company Property Ventures Ltd. Another director of Property Ventures was ultra-right tax avoider and campaigner against the Inland Revenue Department (with the assistance of ACT MP Rodney Hide), Dave Henderson, owner of Ladies Mile Holdings Limited. All companies are involved in a project to create a new town at Frankton, near Queenstown, called “Five Mile”. See our commentary for that month for further details.

[Decision number 200610067.]

US corporation buys Glazebrook Station, Waihopai Valley, Marlborough

Westervelt Sporting Lodges (NZ) Limited, owned in the U.S.A. by the Westervelt Family, has approval to acquire 8,882.7 hectares at Glazebrook Station, Waihopai Valley Road, Blenheim, Marlborough for $5,111,406 from Marshlands Inc, owned in the U.S.A. by the Stephens Family. The land includes or adjoins land “held for conservation purposes”.

According to the OIO,

The Applicant is a wholly-owned subsidiary of Gulf States Paper Corporation, a sixth generation, family owned business, which has 102 shareholders predominantly made up of individuals and trusts associated with the direct descendants of Herbert Westervelt, who founded the company in 1884, and his brother E.C. Westervelt. The Gulf States Paper Corporation is a United States of America based company whose principal businesses are timberlands (400,000 acres), a sawmill/wood products division, a real estate division developing land for upscale neighbourhoods, and a recreation division that manages recreational hunting leases, sporting lodges, providing outfitting services and wildlife consulting for private landowners.

The proposed investment provides the Applicant with benefits in diversifying its recreation activities outside the United States of America. The Applicant’s consultant has identified that the property is not easy to farm being a hard, steep South Island high country run, and that the property lends itself to both a farming and recreational/tourism type operation comprising accommodation, and hunting, fishing, and tramping activities.

The sale of Glazebrook to the Stephens family was approved by the OIC in October 1999. We reported then that the then 9,094 hectare Station was sold for $950,000. It consisted “primarily of pasture, scrub and native bush”. The Stephens told the OIC that they would maintain and upgrade the property and look at converting part into forestry. They stated that it is “well suited for recreational tourism activities, including tramping, horse trekking and hunting”. It appears they have disposed of some of the land but not made much progress with their intentions. In the intervening seven years they have made a capital gain of over 400% and $4 million. See our commentary for that month for further details.

[Decision number 200610082.]

Other rural land sales

·      In two approvals relating to land at Mataka Station, Purerua Peninsula, Bay of Islands, Northland,

·      Wolanski & Co. Trustees Limited and Hook and Slice Limited, owned 66.66% in United Kingdom by Wolanski & Co. Trustees Limited and 33.34% in Aotearoa by Dennis Guise, have approval to acquire 37 hectares for $1,800,000 [Decision number 200610085]; and

·      Wendover Investments Limited, owned 50% by Andrew Patrick Hurst, and 50% by Keith Nethercot, both of the U.K., has approval to acquire 20 hectares for $2,950,000 [Decision number 200610086].

In both cases the purchase is from Mataka Limited, owned in Aotearoa by William Norman Birnie and includes or adjoins land “which is provided as a reserve, a public park, for recreation purposes, or a private open space”. In each case, the OIO states: “The acquisition of this property by the Applicant is part of a rural lifestyle subdivision development on Mataka Station. The Applicant proposes to acquire the subject lot upon which the Applicant’s shareholder intends to construct a house. The establishment and sale of the lifestyle lots will provide capital that will enable the farming operation of Mataka Station to become economically viable, and also to preserve and enhance the conservation and historic values of the property.”

·      Robin Norman and Sara Vivien Weeks of the U.K. have approval to acquire 13 hectares at 540 Dartmoor Road, Puketapu, Napier, Hawkes Bay, for $1,445,625 from Alistair Graham and Karen Faye Noakes of Aotearoa. The OIO states: “The Applicants have received approval from the New Zealand Immigration Service for New Zealand Work Visas under the Long Term Business Visa category. The Applicants intend to reside permanently in New Zealand and propose to acquire the subject property as a permanent residence and to establish a landscaping business. The Applicants are demonstrating a commitment to New Zealand through intending to apply for and take up New Zealand permanent residency.” [Decision number 200610069.]

·      John Edward Christopher Percy and Elaine Grace Whateley of Australia have approval to acquire 0.23 hectares at Ruakaka Bay, Queen Charlotte Sound, Marlborough for $600,000 from Richard Frank Wells, Claire Lesley Haines, Geoffrey Mark Dangerfield and Claire Linda Douglas of Aotearoa. The OIO states: “The Applicants intend to reside permanently in New Zealand and the reason for the purchase of this section of land is to ensure the land remains in its natural state and not developed thereby maintaining the environment within Ruakaka Bay and the immediate vicinity. The Applicants already own the two properties that flank either side of the subject land. These two properties have been owned by the applicants for approximately 10 and 4 to 5 years respectively. The subject land will be for private use and not for commercial use. The Applicants are demonstrating a commitment to New Zealand through intending to reside in New Zealand indefinitely.” The land (or their existing property) includes or adjoins “a reserve, a public park, or other sensitive area”. [Decision number 200610078.]

·      Robinson Hubert Bosomworth and Doreen Margaret Bosomworth of the U.K. have approval to acquire 82 hectares at 5 Forks Road, Enfield, Oamaru, Otago for $1,111,500 from Alister David Blanchard and Yvonne Mary Blanchard and HGW Trustees Limited as trustees of the AD and YM Blanchard Family Trust of Aotearoa. The OIO states: “The Applicants own a 15.38% share in Corriedale Dairy Farm Limited (Corriedale) a company incorporated to develop and operate a 385 hectare dairy farm situated at Windsor, North Otago. The Applicants propose to acquire the subject property to use as another runoff for Corriedale. Corriedale and Windsor Dairies Limited (Windsor), another large dairy farm set up by Franklin Rural Management Group, acquired a 342 hectare farm to be used as a runoff for both farms. Corriedale and Windsor will winter approximately 2,700 cows and 700 yearling heifers this year and subsequent years. The acquisition of the subject property by the Applicants and the proposed agreement with Corriedale for it to utilise the property as a runoff block will enable Corriedale to reach its potential by not having to winter cows or young stock.” [Decision number 200610083.]

·      Petrus Johannes Ludovicus Lavrijsen of the Netherlands, has approval to acquire two North Otago properties:

·      195 hectares at 270 Whartons Road, Maheno for $1,539,757 from Allan Phillip Signal and Prudence Lea Signal of Aotearoa [Decision number 200610079]; and

·      188 hectares at 170 Falconers Road and McLeans Road, Kakanui for $1,575,000 from Lionel Andrew Bugden of Aotearoa [Decision number 200610080].

According to the OIO, “The Applicant and his family moved to New Zealand in December 2005 with the intention to reside indefinitely in New Zealand. The Applicant has applied for and been granted a Long Term Business Visa. The Overseas Investment Office has been advised that the Applicant, who has 18 years farming experience in Holland, wishes to acquire the [two properties] to establish an intensive cropping operation on the combined properties. The Applicant states that by utilising his vast farming experience and cropping techniques from Holland he will be able to increase the productivity of the combined properties. The Applicants are demonstrating a commitment to New Zealand through applying for and taking up New Zealand permanent residency.”

Summary statistics

All investments

Both the gross and net value of investment approved in the year to June 2006 are considerably higher than for the previous June year ( net value disregards sales from one overseas investor to another, and discounts part New Zealand ownership of the assets). By far the greatest part of the value of the approvals is for sale from one overseas investor to another.

*In addition there were two retrospective approvals granted during the month. This involved a a gross consideration of $4,474,000 (land area 26 hectares) and a net investment of $4,473,861 (land area negative 8 hectares).

Investment involving land

Gross sales of land approved by the OIO during the years to June have increased ten times in area, but net sales have increased only 5 times. There was one refusal this month (above), and refusals have risen in number, area and value, but are still a tiny proportion of the total.

*In addition there were two retrospective approvals granted during the month. This involved a gross land area of 26 hectares (consideration $4,474,000) and a net land area of negative 8 hectares (investment of $4,473,861).

Compiled by:

Campaign Against Foreign Control of Aotearoa,

P. O. Box 2258 

Christchurch.