May 2007 decisionsVeda Advantage acquired by PEP and Merrill Lynch for $1 billion ING buys Remuera Gardens Retirement Village and Epsom Village… … AMP's Summerset buys Warkworth and Katikati land for retirement villages SAITeysMcMahon of Australia buys SkyCity Metro centre for $55.1 million Westpac leasing Britomart buildings, Auckland, for new central office Cargill buys 49% interest in publicly owned Spring Creek coal mine Fonterra/Dutch joint venture buys Fonterra’s lactose plant at Kapuni Hikurangi Forest Farms acquires land from Gisborne District Council CDL Land buys Hastings land for residential subdivision
Veda Advantage acquired by PEP and Merrill Lynch for $1 billionVA Australia Finance Pty Limited, owned 50% in Australia by Pacific Equity Partners Fund III managed by Pacific Equity Partners Pty Limited, and 50% in the U.S.A. by Merrill Lynch & Company Inc, has approval to acquire Veda Advantage Limited for $1,074,033,900, owned 78.6% in Australia, 2.3% in the U.S.A., 18.5% by “other shareholders outside top 20” in other countries, and 0.6% in Aotearoa.
Veda is the former Baycorp Advantage, debt collectors. Baycorp was a highly successful New Zealand firm until it merged with Data Advantage Ltd of Australia in 2001, moving its headquarters to Sydney (see our commentary for September 2001 for further details). It was all down hill from there. This is signalled by the price paid by PEP and Merrill Lynch: $1 billion. Baycorp and Data Advantage had a combined market valuation of $1.9 when they merged six years ago. The company has also lost its original New Zealand ownership and control.
In 2005 the company announced it was getting out of debt collecting and focusing on “business intelligence” – in other words, databases on individuals’ and companies’ credit records. They are one of the largest holders of information about individuals in Australasia, describing themselves on their web site as follows:
We are the largest custodian of credit-related information in Australia and New Zealand. We collect data on the financial behaviours of more than 14 million individuals and one million companies in New Zealand, Australia and Asia. And, each day we report on the credit status of the 60,000 individuals and businesses on both sides of the Tasman that apply for credit. (http://www.vedaadvantage.com/value_to_society/value_to_society_default.aspx, accessed 8 July 2007.)
There is a certain unhappy justice in seeing the company now in the hands of a private equity corporation and a merchant bank. They create debt; Veda records it.
According to the OIO,
Veda provides services that help customers to optimise credit and other financial risk decisions and to better manage risks relating to fraud and identity management. VA Australia Finance Pty Limited is a company incorporated by associates of Pacific Equity Partners Pty Limited (PEP) and Merrill Lynch Global Partners, Inc (Merrill Lynch) set up to acquire significant business assets being up to 100% of the shares of Veda Advantage Limited
As PEP and Merrill Lynch are financial buyers and consider that Veda represents an opportunity to acquire a business with substantial potential, believing Veda’s growth prospects are attractive and accordingly Veda is a sound investment for the funds managed by VA Finance. [sic]
[Decision number 200710044.] ING buys Remuera Gardens Retirement Village and Epsom Village…ING Australia Holdings Limited, owned in the Netherlands by Ing Groep N.V., has approval to acquire 2.8 hectares at 57 and 68 Richard Farrell Avenue, Remuera, Auckland for a suppressed amount from Remuera Gardens Retirement Village Limited, Vican Developments Limited, RF Properties Limited and Granite Enterprises Limited, owned in Aotearoa by John Andrew Bagnall and Geoffrey Charles Thorpe.
This is just the latest example of an investment company buying care facilities for the elderly. It is the first for ING, but the last example receiving OIO consent was the private equity corporation CVC buying the large DCA group in December 2006 – the third change of owner for many of its residents since 2004 (see our commentary for that month for further details).
ING makes clear that investment rather than care of the elderly is its prime objective: the OIO states,
The Applicant, ING Australia Holdings Limited (ING) has entered into an agreement with Remuera Gardens Retirement Village Limited, Vican Developments Limited, RF Properties Limited and Granite Enterprises Limited to acquire the retirement village businesses and assets of Remuera Gardens Retirement Village and Epsom Village including land for development purposes.
The acquisition is part of ING’s strategy to expand its investment horizon to include the retirement village and elderly care sector. ING proposes to further develop and grow the potential of the businesses through the expansion of the businesses through further land development.
The land “either alone or together with any associated land … adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area …”.
[Decision number 200710051.] … AMP's Summerset buys Warkworth and Katikati land for retirement villagesSubsidiaries of Summerset Holdings Limited of Australia, which the OIO describes as “the third largest retirement village operator in New Zealand owning and operating a portfolio of ten retirement villages together with two stand-alone care amenities in the North Island” have approval to buy two blocks of land in order to build further retirement villages including rest homes and hospitals.
Summerset was bought by AMP business unit, AMP Capital Investors, in February 2006 – see our commentary for that month for further details. AMP is a former mutual life insurer which was demutualised in 1998 and is now a major diversified financial corporation in Australasia describing itself as “Australia's largest retail and corporate superannuation provider, and one of the region's most significant investment managers with more than A$122 billion in assets under management (as at 16 March 2007)… Individual investors comprise around 43% of AMP's shareholder base and live in more than 100 countries around the world. Institutional investors constitute around 57%.” AMP Capital Investors sums itself up as “Investing. It's what we do.” Their expertise in care for the elderly is clearly not there to be boasted about. (http://www.ampcapital.com.au/corporatecentre/default.asp; “About AMP”, http://www.amp.com.au/group/2column/0,2445,CH921%255FNI73949%255FSI3,00.html.)
In April 2007 AMP Capital Investors announced the formation of an A$1 billion “retirement asset and management” joint venture in Australia with property developer Meridien, called AMP Capital Meridien Lifestyle. Its
portfolio comprises more than $1 billion in retirement assets, including 19 retirement villages… AMP Capital Investors Head of Property Funds Management Andrew Bennett said the company's research had identified the retirement living sector as an emerging, fast-growth sector given demographic and lifestyle trends… ‘Our research has identified that it is an investment sector that is likely to deliver attractive long term returns. We are seeing rapid consolidation and the joint venture with Meridien will enable us to become a significant owner and manager in the rapidly growing retirement sector in Australia.'
Meridien's interests “include property asset ownership, development and management in areas such as residential, industrial, commercial, tourism, marinas and student accommodation.” (“AMP Capital and Meridien announce $1 billion joint venture”, Media Release, 2/4/07, http://www.ampcapital.com.au/corporatecentre/announcements.asp.)
Summerset Villages (Warkworth) Limited and Summerset Properties Limited have approval to acquire 7 hectares at Woodcocks Road, Warkworth, Auckland for $1,984,570 from AS Property Holdings Limited, owned in Aotearoa by Norah Barlow and Paul Morris. The OIO states that the proposal is likely to result in “enhanced public walking access to the Mahurangi River.” [Decision number 200710052.]
Summerset Villages (Katikati) Limited and Summerset Properties Limited have approval to acquire 7 hectares at 181 Park Road, Katikati, Bay of Plenty for $5,031,250 from Rex Laurence Warren and Robyn Cynthia Warren of Aotearoa. The land appears to be sensitively situated: it “either alone or together with any associated land of that type is or includes land that a district plan or proposed district plan under the Resource Management Act 1991 provides is to be used as a reserve, as a public park, for recreation purposes, or as open space; … is or includes a historic place, historic area, wahi tapu, or wahi tapu area that is registered or for which there is an application or proposal for registration under the Historic Places Act 1993; … is or includes land subject to a heritage order, or a requirement for a heritage order, under the Resource Management Act 1991 or by the Historic Places Trust under the Historic Places Act 1993; … adjoins land that is an esplanade reserve, esplanade strip, recreation reserve, a road or a Maori reservation, that adjoins the sea or a lake; and … adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area …”. [Decision number 200710056.]
In each case, the OIO states that the companies approved to purchase the land are wholly-owned subsidiaries of Summerset Holdings Limited and propose to acquire the land
to establish a high quality retirement village that provides accommodation and recreational activities for residents and care facilities comprising a hospital and rest home. Summerset is the third largest retirement village operator in New Zealand owning and operating a portfolio of ten retirement villages together with two stand-alone care amenities in the North Island. The proposed acquisition is part of Summerset’s strategy to expand throughout New Zealand. SAITeysMcMahon of Australia buys SkyCity Metro centre for $55.1 millionSAITeysMcMahon NZ Trustees Pty Limited as trustee of the SAITeysMcMahon NZ Diversified Property Fund of Australia has approval to acquire 3.3 hectares of freehold and 0.34 hectares of leasehold at 291-297 Queen Street, Auckland for $55,100,000 from SkyCity Metro Limited, owned 31% in Australia, 8.67% by “various overseas persons”, 8.58% in the U.S.A., 2.33% in the U.K., and 49.42% in Aotearoa.
The land “either alone or together with any associated land of that type… is or includes a historic place, historic area, wahi tapu, or wahi tapu area that is registered or for which there is an application or proposal for registration under the Historic Places Act 1993; and adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area…”.
The OIO states:
The SAITeysMcMahon NZ Diversified Property Fund, part of the SAITeysMcMahon Property Limited (SAI) property group, proposes to acquire the freehold interest in the land and take an assignment of a lease at 291-297 Queen Street, Auckland known as the SkyCity Metro retail/entertainment centre. The acquisition is part of SAI’s investment and development strategy in the New Zealand commercial property market. SAI intends to maximise the potential of the property through the development and upgrade of the property.
[Decision number 200710055.] Westpac leasing Britomart buildings, Auckland, for new central officeWestpac (NZ) Investments Limited and Westpac New Zealand Limited, owned in Australia by the Westpac Banking Corporation, has approval to acquire 1.6 hectares of leasehold at 36-58 Customs Street East, 52-70 Galway Street, 47-69 Tyler Street, 11 Britomart Place and 76-88 Quay Street, Auckland for a suppressed amount from Britomart Charter Company, Britomart Customs Company, Britomart East 1 Company and Britomart East 2 Company, owned in Aotearoa by Whitecloud Britomart Limited.
The land “either alone or together with any associated land of that type… is or includes a historic place, historic area, wahi tapu, or wahi tapu area that is registered or for which there is an application or proposal for registration under the Historic Places Act 1993; and is or includes land subject to a heritage order, or a requirement for a heritage order, under the Resource Management Act 1991 or by the Historic Places Trust under the Historic Places Act 1993.”
According to the OIO,
Westpac (NZ) Investments Limited and Westpac New Zealand Limited (jointly Westpac) intend to enter into leases (for a period of 10-12 years) of certain buildings yet to be constructed/completed on the subject land. The buildings will provide a new central office in Auckland City for Westpac creating an opportunity to bring together Westpac’s employees from around Auckland (and other parts of New Zealand) into a single central office, increasing business unity and efficiency and creating a presence for Westpac in downtown Auckland.
[Decision number 200710059.] Cargill buys 49% interest in publicly owned Spring Creek coal mineSpring Creek Holdings Pte Limited of the U.S.A. has approval to acquire 49% of Spring Creek Mining Company, including 61 hectares of freehold at Spring Creek Mine, State Highway 6, Greymouth and 19 hectares of leasehold at Seven Mile Creek Road and Part Rewanui Branch Railway, Greymouth, West Coast for a suppressed amount from Solid Energy New Zealand Limited, owned by The Crown.
The purchaser is a subsidiary of the huge and frequently controversial US trading company and agribusiness Cargill.
According to the OIO,
Cargill Asia is a holding company for the business activities for the Cargill Group in the Asia Pacific Region. Its principal activities relate to investment holding, and assisting in identifying investment and trading opportunities for the Cargill Group in the region. The acquisition of the shares and therefore the interests in land is an expansion of the Cargill Group’s coal trading business.
The Applicant intends to acquire 49% of the share capital of Spring Creek Mining Company (SCMC) and accordingly will result in the Applicant indirectly owning or controlling interests in sensitive land. Spring Creek Mine Holdings Limited, a wholly owned subsidiary of Solid Energy New Zealand (SENZ) will transfer the capital assets of the mine to SCMC.
The coal produced by the Mine is of exceptional quality, with rare physical characteristics that make it valuable on the international coal market and will make a strong enhancement to the collection of coal products offered by the Applicant.
With SENZ’s considerable experience in coal mining and in marketing New Zealand coal, combined with the Cargill Group’s global coal trading experience and connections in related markets, the partnership is seen as appropriate and a necessary move forward for the operation of the business.
[Decision number 200710048.] Fonterra/Dutch joint venture buys Fonterra’s lactose plant at KapuniDMV-Fonterra Excipients (NZ) Limited, owned 36.225% in the Netherlands, 13.38% in Germany, 0.395% in Belgium, and 50% in Aotearoa, has approval to acquire 1.4 hectares of leasehold at Manaia Road, Kapuni, Taranaki for $420,000 from The Lactose Company of New Zealand Limited, owned 100% in Aotearoa.
In fact the local owner in both cases is Fonterra, and the sale of the lease is part of a transfer of the ownership of a lactose plant. The OIO states:
Fonterra Co-operative Group Limited (Fonterra) and Campina B.V. (Campina) have entered into a Joint Venture Agreement in relation to the manufacture, development, marketing and sales of their respective excipients businesses. The Joint Venture Agreement requires Campina and Fonterra to contribute the following manufacturing facilities to the joint venture: Campina’s plants at Norten-Hardenberg, Germany and Foxhol in the Netherlands, and Fonterra’s inhalation grade lactose plant at Kapuni.
The Joint Venture grew out of the business unit Pharma of DMV International, part of the Group Industrial Products of Campina, and The Lactose Company of New Zealand Limited, a wholly owned subsidiary of Fonterra. The Joint Venture will focus on expanding the business with a broad portfolio of excipients and with new product-lines and functionalities. All current products in the parents’ portfolio, used as excipients in pharmaceutical applications plus the lactose used in the production for so-called Fine Chemical or semi-Pharma applications will fall within the scope of the Joint Venture.
(According to Wikipedia, “An excipient is an inactive substance used as a carrier for the active ingredients of a medication. In addition excipients can be used to aid the process by which a product is manufactured”: http://en.wikipedia.org/wiki/Excipient, accessed 8 July 2007.)
[Decision number 200710047.] Hikurangi Forest Farms acquires land from Gisborne District CouncilHikurangi Forest Farms Limited, owned 59.69% in Malaysia by Samling Malaysia Inc, 32.77% in Malaysia by other shareholders, and 7.54% in Japan by Sojitz Corporation, has approval to acquire 22 hectares at Dunstan Road, Gisborne for an initially suppressed amount, released on appeal in August 2007 as $1,840,500, from the Gisborne District Council.
According to the OIO,
The Applicant Hikurangi Forest Farms Limited (Hikurangi) carries on a forestry business in New Zealand in its own right and through its wholly owned subsidiaries, East Coast Forests Limited and Tasman Forestry (Gisborne) Limited. Hikurangi owns or manages approximately 35,009.8 hectares of forest plantation land in New Zealand which is predominantly planted in radiata pine.
Hikurangi proposes to acquire the subject property, which adjoins land already owned by Hikurangi to develop a timber processing facility. The subject land is located in close proximity to Hikurangi’s forestry plantations and the Gisborne Port. The timber processing facility will process Hikurangi’s timber resources for the domestic market and for export to global markets.
The land already owned by Hikurangi was acquired in February 2006: see our commentary for that month for further details. Its last land purchase before that was in July 2001: again, see our commentary for that month for further details. The details of the shareholders have changed over the years but in fact they are now the shareholders of Lingui Developments Bhd. Lingui is a major shareholder in Glenealy Plantations (Malaya) Berhad, which bought Hikurangi Forest Farms from Fletcher Challenge Forests Ltd in December 1996 when Fletchers was selling assets to raise money for its Forestry Corporation purchase (see our commentary for that month for considerable detail and background). The ownership is via a subsidiary, TreeOne (NZ) Ltd, owned in turn by TreeOne (Malaysia) Sdn Bhd, according to Companies Office records. The companies are part of the large Samling group. Greenpeace has accused Samling and Lingui of involvement in illegal logging in Papua New Guinea through the company Concord Pacific which it says is controlled by Lingui parent company Samling Strategic Corporation (The Borneo Project, “Greenpeace Stops Shipment of PNG Timber Linked to Malaysian Loggers”, by Susan Loone, Malaysiakini, 13/5/02, http://borneoproject.org/article.php?id=345, accessed 8/7/07). Lingui also has forestry interests in Indonesia.
Both Lingui and Glenealy were in financial trouble from the late 1990’s until at least late 2002. For Glenealy, this was partly due to a US$100 million loan it took out to buy Hikurangi which was secured by a charge over the shares of TreeOne (NZ) Ltd. Glenealy sold its forestry assets, including TreeOne, to Lingui as part of its remedy (but retained some redeemable preference shares in it). Glenealy bought all of Lingui’s oil palm plantation assets in return. For Lingui, another remedy in 2002 was for Hikurangi to raise a loan from the ANZ bank in New Zealand to refinance a US dollar loan (presumably the same one that financed Glenealy’s purchase of Hikurangi). It is likely that Hikurangi’s sounder financial position and asset base allowed it to raise the funds and hence effectively be used to bail out its parent. Rather than this being foreign investment in New Zealand, it was New Zealand investment in Malaysia. The effect on Hikurangi’s own financial position and its ability to invest in forestry development in Aotearoa is unknown, but the five-year gap between the July 2001 and February 2006 land purchases may be a symptom. (Troubled Company Reporter Asia Pacific, “Glenealy Plantations: Gets SC approval for restructure”, quoting Star Online 8/9/99, 9/9/99, http://bankrupt.com/TCRAP_Public/990909.MBX; “Lingui Development: Oil palm plantations sale part of rehab”, quoting Star Online, 6/12/99, 7/12/99, http://bankrupt.com/TCRAP_Public/991207.MBX; Glenealy Plantations (Malaya) Berhad (Incorporated in Malaysia) and its subsidiaries Financial statements for the year ended 30 June 2000, pp. 27 and 35; Rating Agency Malaysia, “Lingui’s Rating Watch changed to developing outlook”, by Chan Teik Sim, 24/12/02, Press Release, http://www.ram.com.my/custom.cfm?name=press.cfm&id=380; Rating Agency Malaysia, “RAM lifts Rating Watch on Lingui Developments Berhad”, by Chan Teik Sim, 21/2/03, Press Release, http://www.ram.com.my/custom.cfm?name=press.cfm&id=427 [all above URLs accessed 8/7/07])
[Decision number 200710049.] CDL Land buys Hastings land for residential subdivisionCDL Land New Zealand Limited, owned 23.3138% in Singapore by the Hong Leong Group, 21.2548% in Singapore by minority shareholders, and 55.4314% in Aotearoa, has approval to acquire 7 hectares at 1317 Pakowhai Road, Hastings, Hawkes Bay for $3,993,750 from David Sue and Christine Nancy Sue, Thomas Patrick Donovan, and Napier Trustees Limited as trustees of the Cee Dee Family Trust of Aotearoa.
The OIO states:
The Applicant’s core business is the acquisition of land for residential subdivision and development. The proposed acquisition will further strengthen and grow the Applicant’s land bank and development portfolio. The subject property which is currently used by the vendors for grazing sheep and market gardening is situated near land undergoing residential development. It is proposed that the land will be subdivided in two stages into approximately 77 residential sections to be made available for sale to the open market. The subdivision development is likely to commence in 2007/2008.
The land “either alone or together with any associated land … adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area…”.
CDL Land’s last purchase of land was in September 2006 in the South Island, in Christchurch, and in April 2005 in the North Island, in Hamilton. See our commentary for those months for further details.
[Decision number 200710057.] Land for forestry· Craigpine Timber Limited, owned 43.11% by Graeme Lewis Sims Black, 18.97% by Quentin John Sims Black, and 18.96% by Nerissa Margaret Guest, all of Australia, and 18.96% in Aotearoa by Marian Catharine Black, has approval to acquire 221 hectares at 1150 Bushy Park Road, Hokonui, Southland for $225,000 from Hokonui Forest Developments Limited, owned in Aotearoa. According to the OIO, “Craigpine Timber Limited (Craigpine) is a Southland based forestry company which owns or manages approximately 3,302 hectares of land established predominantly in radiata pine forestry in the Southland region. Craigpine also operates a sawmill operation at Winton which processes the logs from the forestry plantations for both the domestic and the export market. Craigpine proposes to acquire the subject land in order to secure a further supply of logs for the Winton sawmill. The vendor established the current forest rotation over thirty years ago and does not wish to replant a further rotation. Craigpine has entered into an agreement with the vendor to harvest the forest (continuing until December 2010). Craigpine propose to replant the land as the current forest has been harvested.” The land, “either alone or together with any associated land … adjoins land held for conservation purposes under the Conservation Act 1987”. We last heard from the Black family and Craigpine Timber in August 2001 when the family received permission to buy Donaghys’ share of Craigpine. Prior to that Craigpine and the Blacks had been regular buyers of land and other property – see for example the OIC’s April 2000 decisions. [Decision number 200710054.] Land for wine· Robert Zalmon Gussin and Patricia Elizabeth Gussin of the U.S.A. have approval to acquire 10 hectares at Rapaura Road, Blenheim, Marlborough for $2,925,000 from Villa Maria Estate Limited, owned in Aotearoa by George Vijeceslav Fistonich. According to the OIO, “The Applicants, Dr Robert and Dr Patricia Gussin, are existing vineyard owners in New Zealand and are existing suppliers to Villa Maria Estate Limited (Villa Maria) (the Vendor). The land is an established vineyard containing 9.09 planted hectares. It is proposed that the Applicants will enter into a Vineyard Management Agreement and Grape Supply Agreement with Villa Maria Estate Limited (Villa Maria) (the Vendor) which will enable the land to be continued to be managed by Villa Maria. Villa Maria intends to apply the capital released from the sale of the land to the Applicant towards the promotion and development of New Zealand wine sales overseas.” The Gussins have previously received approval to buy other blocks of land. For details of the last such approval, see our commentary for October 2004. [Decision number 200710060.] Other rural land sales· A.F.M. Gaitens of the Netherlands has approval to acquire 2.0 hectares at Rangitane Road, Kerikeri, Northland for $1,040,000 from Gregory George Roy Blunden and Gay Eileen Blunden of Aotearoa. The land “either alone or together with any associated land… adjoins a scientific, scenic, historic, or nature reserve under the Reserves Act 1977 that is administered by the Department of Conservation, … adjoins land held for conservation purposes under the Conservation Act 1987); and … adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area...” The OIO states: “The Applicant is intending to establish a business in New Zealand and reside in New Zealand indefinitely. An application for a New Zealand Long Term Business Visa has been lodged with the New Zealand Immigration Service. The applicant proposes to acquire the subject property as a permanent residence. The Applicant is demonstrating a commitment to New Zealand through applying for and taking up New Zealand permanent residency.” [Decision number 200710058.] · Alla Igorevna Kiroshka of South Africa has approval to acquire 6 hectares at 635 Barkers Road, Loburn, RD2, Rangiora, Canterbury for $667,500 from Caroline Elizabeth Whittaker and Mark David Whittaker of Aotearoa. According to the OIO, “The Applicant is intending to establish a business in New Zealand and reside in New Zealand indefinitely. The Applicant has been awarded a Long Term Business Visa through the New Zealand Immigration Service. The Applicant proposes to acquire the subject property as a permanent residence. The Applicant is demonstrating a commitment to New Zealand through applying for and taking up New Zealand permanent residency.” [Decision number 200710050.] · Terry John Howes and Carol Pearl Howes of the U.K. have approval to acquire 6 hectares at 589 Old West Coast Road, West Melton, Christchurch, Canterbury for $1,170,000 from Ron Zwarst Holding Company Limited, owned 50% by Christopher John Saxton, and 50% Ronald John Zwarst, both of Aotearoa. The OIO states: “The Applicants wish to purchase the property in order to establish a family home for their family. The location outside of Christchurch city suits the family’s desire to maintain a small lifestyle type of living. The principal use of the property will be for residential use for the applicants own family unit and includes the house and garden, outbuildings, garaging, access driveway, the swimming pool and tennis court areas. The remaining areas of the property will be used to support small lifestyle interests which will include the continued production of the existing olive grove and use of the paddock areas for the rearing of small numbers of livestock. The Applicants wish to acquire the land in order to use the property as a family home. The Applicants are intending to permanently live on the land and they are intending to reside in New Zealand indefinitely.” [Decision number 200710046.] · Robert Athelstan Price of the U.K. (50%) and Carl-Josef Hubert Weiers of Germany (50%) have approval to acquire 478 hectares at 1066 Mayfield Klondyke Road, Mondalto, South Canterbury for $8,961,980 from Adam John Allan Spiers, Annabel Sara Spiers and Michael Allan McPhail of Aotearoa. According to the OIO, “The Applicants intend to lease the Property to a farming partnership known as the ‘Amberside partnership’ once the acquisition is completed. Athel Price and Carl Weiers will be the two partners responsible for running and farming the property. This Application is firstly to acquire the Property and secondly to lease it to the Partnership. Mr Price believes New Zealand farmers are at the forefront of new agricultural technology and efficiencies. He has a strong desire to be part of it and to gain a full understanding of the science and the practice of livestock farming under New Zealand conditions. Mr Weiers has similar aspirations and hopes to diversify his family’s agricultural base as agricultural land in Germany is tightly held making it difficult to expand.” [Decision number 200710053.] Summary statisticsAll investments The value of investment approved in the year to May 2007 is over three times that for the previous May year, and the net value (i.e. disregarding sales from one overseas investor to another, and discounting part New Zealand ownership of the assets) is almost three times the same period in the previous year. Indeed, the net value of the approvals in the year to date is almost as much as the gross value for the previous year – about $2.9 billion. By far the greatest part of the value of the approvals is for sale from one overseas investor to another.
Investment involving land Gross sales of land approved by the OIO during the years to May have increased slightly in area, though net sales have fallen by almost two-thirds. Leases have increased substantially (gross area has tripled; net has doubled) but are a small part of the total. Refusals (above) have risen in number, area and value, but are still a tiny proportion of the total.
Fishing Quota There was no fishing quota approved for sale this month or this year.
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Compiled by: Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
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