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Foreign investment in Aotearoa/New Zealand

Overseas Investment Office - September 2018 Decisions

New Forests (Australia) Buys Five Wairarapa Forests

ANZFF2 NZ Ltd and the Trust Company Ltd(as Trustee of ANZFIF2) has consent from the Minister for Land Information and the Associate Minister of Finance to acquire:

• approximately 1,670 hectares at Craigie Lea Forest , 820 Craigie Lea Road, Te Wharau, Wairarapa;
• approximately 168 hectares at Beehive Creek Forest, 1545 Pohangina Road, Pohangina Valley
• approximately 880 hectares at Erindale Forest at Masterton-Castlepoint Road near Whakataki;
• approximately 190 hectares at Tinui Forest, 4377 Masterton-Castlepoint Road, Tinui, Wairarapa;
• approximately 155 hectares at Flat Point Forest off Te Wharau Road, near Flat Point, Wairarapa Coast.

The Trust Company (Australia) Ltd as trustee for the New Forests Australia New Zealand Forest Operating Fund 2 (100%) which is wholly owned by certain overseas investment funds. The New Forests Australia New Zealand Forest Operating Fund 2 is managed by New Forests Asset Management Pty Ltd. The vendor is Growth Holdings Ltd (IFS Growth Ltd, NZ 51%; Invercargill City Forests Ltd, NZ 49%) and the price is $4.8 million.

The OIO summary states that NZFF2 NZ Ltd is a subsidiary of the New Forests Australia Forest Fund 2, an investment fund with the mandate to invest exclusively in forestry assets in Australia and New Zealand. The investment fund is managed by New Forests Asset Management Pty Limited (New Forests). New Forests and its related companies manage existing assets across Australia, New Zealand, Asia and the USA with over $A3.5 billion of assets under management.

The acquisition is expected to result in a substantial and identifiable benefit to New Zealand. New Forests intends to implement additional protection for significant areas of indigenous vegetation, wetlands and the habitats of native freshwater fish across the forests. Additional access routes and public access easements will be created. This is likely to advance the Government's strategy to plant one billion trees between 2018 and 2027.

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AV Jennings Housing Development In Orewa

AVJ Hobsonville Pty Ltd (SC Global Developments Pte Ltd, Singapore 53%; Australian Public 47%) has consent from the Minister for Land Information and the Associate Minister of Finance to acquire approximately 84.5 hectares at Grand View Estate property (Hall Farm) Grand Drive and off Weranui Road, Orewa West, from Orewa West Investments Ltd (NZ 100%).

The OIO states that AVJ Hobsonville is a subsidiary of AV Jennings Ltd. They plan to develop this undeveloped land into residential housing in stages to ultimately provide approximately 575 residential houses in the Auckland market. They also intend to develop a mixed-use retail and commercial neighbourhood centre.

This is expected to result in job opportunities, advancement of the National Policy Statement on Urban Development Capacity, and enhanced services in relation to the neighbourhood centre. AV Jennings has previously undertaken investments of benefit to New Zealand, being the development of several precincts at Hobsonville Point, which provided a large number of homes, including affordable homes.

AV Jennings is an ASX-listed company with revenue of $374.3 million in the 2018 financial year, around half of that in NSW, that has been operating in NZ for ten years. This development is a greenfields site, formerly Hall Farm, located west of the Auckland-Waiwera toll road. It is now zoned residential, with five lots zoned for commercial development. Houses will become available from 2010. The Urban Developer (4/12/18) states that funding will come from the company's core $300 million "Club" banking.

See November 2014 Decisions for AVJ's consent to purchase its Hobsonville site from Housing NZ, where work is well advanced on a high density, 43,500 home development. The Companies Office says Orewa West Investment Ltd was dissolved on 21 July 2009 but was owned by Limitless Trustee Co Ltd and Sentinel Trust Co. Ltd: company officers Simon Edwin Herbert and Gregory David Kernohan.

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Second Takeover Of Tegel, By Philippines

Bounty Holdings NZ Ltd (various Cheng Family members, Philippines 100%) has consent from the Minister for Land Information and the Associate Minister of Finance to acquire up to 100% of the shares of Tegel Group Holdings Ltdwhich owns or controls interests in approximately 321.4 hectares of sensitive land, being:

• approximately 19.2097 hectares at 464-476, 485, 487-499 Richmond Road and 585 Manutahi Road, Lepperton, Taranaki;
• a lease for approximately 0.8750 hectares at 243 Dunns Crossing Road, Rolleston, Canterbury;
• approximately 19.3685 hectares at 736 Tramway Roads (corner Boultons Road), Darfield;
• approximately 4.1561 hectares at 9A, 95 Tegal Road, and 270 Flanagan Road, Drury South, Auckland;
• a lease for approximately 1.9240 hectares at 757 Egmont Road, Hillsborough, Taranaki;
• a lease for approximately 7.6876 hectares at 229 Kaipi Road, near Egmont Village, Taranaki;
• a lease for approximately 9.4145 hectares at 79-99 Paraite Road and 2 De Havilland Drive, West New Plymouth;
• a lease for approximately 6.8930 hectares at 176 Bristol Road, New Plymouth; and
• an equitable Interest in freehold and leasehold of approximately 251.9185 hectares at 5726, 5727, 5764, 5780, 5802 State Highway 12, 65, 89 Whakahara Road, Arapohue, Kaipara District.

The takeover is of Tegel Group Holdings Ltd (NZ Public 25.8%; US Public 23.5%; various overseas 15.6%; Australian Public 9.5%; Colonial First State Asset Management [Australia] Ltd, Australia 51%; Perpetual Investment Management Ltd, Australia 5%; Singapore Public 3.8% Cayman Islands Public 3%; Dutch Public 2.7%; UK Public 2.4%; Germany 2%; Canada Public 1.6%). The price is $437 million.

The OIO states that Bounty Holdings NZ is a member of the Bounty Group, a Philippines-based group of poultry companies owned by the Cheng family. The Bounty Group's operations include broiler, breeding and poultry processing, egg production, hog farming, feed-milling, and food retailing. Bounty Group has made full takeover offer under the Takeovers Code to acquire the shares in Tegel Group Holdings Ltd, which is an NZX listed company. Tegel is a large poultry producer involved in breeding, hatching, processing, marketing, sales, and distribution of poultry products throughout New Zealand and to export markets.

Bounty intends to focus on exploring new export markets, and creation of new jobs in areas including research and development, production and sales and marketing. The proposed benefits to New Zealand are additional export receipts for Tegel products in the Philippines and eventually in other Asian export markets, including Indonesia or Singapore. Bounty intends to create opportunities for consultancy and secondments of senior Tegel staff to Bounty Group entities, and estimates that the expansion of Tegel will also result in at least 15 new jobs.

Bounty Fresh Group has extensive sales and distribution networks in the Philippines, operating a farm-to-market strategy to control the entirely production and supply chain. Over the last six years, it has also established over 1,500 company-owned takeaway stores under three brands. Bounty Group's 2017 revenue was over $750m. Tegel reported revenue of $614m for 2017, but reduced profits. Recent OIO consents show Tegel moving to land-sale-and-lease-back arrangements.

In April 2018 Tegel's largest shareholder, Singapore-based Claris Investments (owned by Affinity Equity Partners), agreed to sell its 45% stake to Bounty Group at $1.23 a share, a 50% premium on the last traded price of $0.82. This led to a full takeover offer, causing Tegel's share price is rise from $0.82 to $1.15, later easing to $1.12 (Iles, Stuff, 26/4/18,).

By 28 August Bounty had 94.5% of Tegel shares, "still subject to OIO approval" ( NZ Herald, 24/8/18,). Bounty Holdings NZ Ltd was registered as a NZ company on 23 March 2018, with two out of three directors in Manila and its ultimate holding company registered as IF Holdings Company (PTC) Ltd, a Manila-based private trust company registered in the Virgin Islands. And Bounty Holdings NZ is now on the NZX, replacing the Tegel Group name - so, having acquired full control, the family can get some of its stake money back. See November 2017 for the Affinity takeover of Tegel, other history and past OIO consents.

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Consent Declined For Tegel's Kaipara Development

The following weekTegel Foods Ltd (NZ Public 25.8%; US Public 23.5%; various overseas 15.6%; Australian Public 9.5%; Colonial First State Asset Management [Australia] Ltd, Australia 5%; Perpetual Investment Management Ltd, Australia 5%; Singapore Public 3.8%; Cayman Islands Public 3.4%; Dutch Public 2.7%; UK Public 2.4%; Germany 2%; Canada Public 1.6%) was declined OIO consent by the Minister for Land Information and the Associate Minister of Finance.

Tegel wanted to acquire a freehold and leasehold interest in approximately 251.92 hectares in Arapohue, Kaipara District, from Maree Susan Chapman, Phillip Lewis Langdon (NZ 100%), Michael Shane Larder, Beverley Elaine Lardner Derek Charles Halse (NZ 100%), Lorraine Exley, David Brendan Dennis (NZ 100%) and Riversedge Ltd as Trustees of The Riverbank Trust (NZ 100%). Price withheld under s.9(2)(b)(ii) of the Official Information Act.

The OIO states that Tegel Food Ltd intended to acquire the land to build its largest broiler chicken facility. The land is in four blocks; the main block is currently a dairy farm and the rest are lifestyle properties. SH12 Ltd (a member of the same wholly owned group as Tegel) would acquire a freehold interest in the land and then lease it to Tegel.

For consent to be granted, Ministers needed to be satisfied that the investment would result in substantial and identifiable benefit to New Zealand. Development is contingent on Tegel obtaining all necessary resource consents and Tegel has submitted a joint application to the Kaipara District Council and Northland Regional Council for development and operation of the proposed facility.

In July 2018 staff for both Northland Regional Council and Kaipara District Council recommended to the Independent Commissioners that the resource consent be declined. Ministers were not satisfied that Tegel was likely to get the resource consent required to complete its proposed development. They considered there was too much uncertainty that this development would proceed for the resulting benefits to be considered likely.

The resource consents were to farm nine million chickens a year on land next to Kāpehu marae in Arapohue. SH12 Ltd is named for the road to Arapohue and Dargaville, and was registered in December 2017. The "wholly owned group" at that stage was Affinity Equity Partners, but see above for the casino capitalism antics since then. The hapu and other locals have been protesting against it for months, saying the smell and continuous trucks would change their way of life. Tegel held an "information" hui in Auckland, and half of Dargaville turned up to protest - see TVNZ video, 7/6/18 .

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Canadian/US Private Equity Buys Mansons' Fanshawe St Development

CC Neikea Trust Pte Ltd ,(Canadian Public 44.7%; US Public 22%; Switzerland Public 18.1%; Azerbaijan Public 11%; Australian Public 3%; various public 1.2%) has consent to acquire significant business assets, being non-sensitive land at 155-167 Fanshawe Street, Wynyard Quarter, Auckland, from Mansons Wynyard Ltd (Mac Manson Trust, NZ 25%; Luke Manson Trust, NZ 25%; ECM Trust, New Zealand 25%; Culum Manson Trust, NZ 25%). Price withheld under s.9(2)b((ii) of the Official Information Act.

The vendor in relation to the first investment is TSB Group Investments Ltd (various NZ 100%) and in relation to the subsequent investment are likely to be Fisher Funds and/or its shareholders (TSB Group Investments Ltd or TSB Group Capital Ltd). The price, which exceeds $100m, is withheld under s.9(2)(b)(ii) of the Official Information Act.

The OIO states that CC Neikea is a company registered in Singapore, whose beneficial owners are two overseas limited partnerships which are investment funds managed by the PAG Group. The PAG Group manages a series of real estate funds investing in properties throughout Asia-Pacific. The acquisition is of non-sensitive land where Manson’s Wynyard will construct and develop a commercial building for offices and retail spaces for CC Neikea, negotiate leases with tenants, and transfer the leases to CC Neikea on the settlement date.

Mansons Wynyard is a New Zealand owned property developer specialising in constructing, leasing and selling primarily commercial buildings. CC Neikea has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character, and CC Neikea has demonstrated financial commitment to the investment.

Mansons Wynyard Ltd, registered in February 2017 with directors Ted Manson and son Culum, is part of Manson TCLM Ltd , a three generation Auckland development, building and leasing company (www.mansons.co.nz). This Wynyard Quarter development opposite Victoria Park is Mansons' biggest new job - an eight storey 15,354 m2 building, six-star green rated, with 80 carparks.

Work started in June 2017 and is due for completion to finish in June 2019 (NZ Herald, 2/3/18). See consents in November 2017, March 2016, June 2007, September and November 2004 for Mansons selling its developments on to overseas investment syndicates.

The PAG Group, with offices in seven Asian cities and Sydney, describes itself as one of Asia's largest investment management firms, managing more than $US20 billion in private equity, real estate and "absolute return strategies". CC Neikea Trust was registered in Singapore on 2 May 2018 as an exempt private limited company, located in the Grace Global Raffles building with hundreds of other companies.

So, God knows who the ultimate beneficiaries of this bit of Auckland will be. Wikipedia says Neikea were Greek goddesses of arguments, so let’s hope the partnership goes well. It’s not the first: see OIO consent in May 2017 when another mythological PAG company, CC Hera Trust, bought another Mansons' development at 46 Sales St, behind Victoria St market.

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Waste Management Dump For Dome Valley, Wellsford

Waste Management NZ Ltd (China, PR 83.1%; Hong Kong Public 16.9%) has consent from the Minister for Land Information and the Associate Minister of Finance to acquire approximately 1,021 hectares adjoining State Highway 1 near Wellsford, including Springhill Farm and a part of the Mahurangi Forest. The vendors are Matariki Forests (US Public 64.9%; UK Public 12.03%; Luxembourg Public 10.2%; various overseas 8.6%; Swedish Public 2.5%; Dutch Public 1.8%), and Springhill Estate Ltd (NZ 100%). Price withheld under s.9(2)(b)(ii) of the Official Information Act.

The OIO states that Waste Management is the largest operator in the New Zealand waste industry. It is acquiring this land for a landfill to service Auckland city and region. It will replace Waste Management's existing Redvale landfill which is likely to reach capacity by 2026. The acquisition is considered likely to result in creation and retention of jobs, enhancement of domestic services, advancement of Auckland Council's strategies for future urban growth, development of infrastructure and additional development investment in constructing the landfill. Waste Management also intends to provide walking access along the Waiwhiu Stream.

In October 2016 Waste Management's consent for its Tirohia landfill stated it was 50.5% owned by the Chinese government. China has decided against importing other countries' waste, so I guess Waste Management needs more landfills here. The Redvale landfill and Energy Park landfills at Dairy Flat will reach capacity between 2026 and 2028.

This new landfill in the Dome Valley will add an estimated 450 return waste truck and vehicle trips a day on the dangerous SH1 between Wellsford and Warkworth, increasing to 750 return trips by 2060 (see map, Stuff 7/10/18).

Originally owned by the notorious US company Waste Management (WMX, see April 1999 commentary), Waste Management NZ was listed on the NZ Stock Exchange, then taken over by Transpacific Industries (June 2006), expanded to Australia, bought into by the private equity firm Warburg Pincus (March 2008), then bought up by Chinese interests (June 2014, October 2014). See consents in April 2018, May 2017, August 2016 (Chinese buy-up), March 2015, November 2009 September 2007 and June 2006.

Around 70 acres of Mahurangi Forest is being bought from Rayonier Matariki Forests, NZ's third largest forestry company (120,000 ha), which is a low-tax investment vehicle for US pulp and paper company Rayonier Inc (see Edward Miller's "The Financialisation Of NZ Forestry" in Watchdog 136, September 2014).

Rayonier bought 100% of Matariki Forests in February 2013, from a previous 24% share. The Springhill farm near Dome Valley about to become a landfill is described by Harcourts as "a wonderful family farm" of 950 acres consisting of acacia stands, barley, fertile grazing sheep or cattle, a swimming pool, conference facilities and an airfield with automated hangars - just the thing for new Chinese owners popping in.

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Canadian Takeover Of Tru-Test

Datamars SA and Datamars Ltd (Canada Public 65.1%; US Public 13.7%; Luxembourg Public 9.1%; UK Public 8.7%; Switzerland Public 1.6%; Cayman Islands Public 1%; Spanish Public 0.8%) has consent to acquire business assets exceeding $100 million, being:

1. All the shares held by Tru-Test Corporation Ltd or Tru-Test Ltd in their subsidiaries (being 11 companies outlined as below):
• Tru-Test Pty Ltd
• Tru-Test Dairy Technology (Australia) Pty Ltd (100% owned by TTL)
• Tru-Test Inc.
• Speedrite de Mexico, SA de CV
• Tru-Test Brasil Limitada
• Farm Tech Argentina SA
• Tru-Test UK Ltd
• Kiwikit Ltd
• Tru-Test AgTech Ltd
• Agtrac Services Ltd
• Tru-Test Management Services Ltd
2. Businesses in the FRM (farm resource management) Segment (weighing, electronic identification, contract manufacturing, electric fencing) and Milk Metering Segment carried on by Tru-Test and their subsidiaries; and
3. All the assets (including but not limited to intellectual property, contracts, NZ and international assets) used in the above businesses.

The vendor is Tru-Test Corporation Ltd (Australian Public 49.4%; NZ Public 35.6%; US Public 15%); Tru-Test Ltd (Australian Public 49.4%; NZ Public 35.6%; US Public 15%). The OIO states that Datamars SA is a company registered in Switzerland, and Datamars Ltd is its wholly-owned subsidiary in New Zealand. Datamars belongs to the wider Datamars group which is a global supplier of identification solutions, specialising in radio frequency identification technology, with its three markets being companion animal ID, livestock ID and textile ID.

This acquisition involves the Datamars' acquisition of shares, businesses and assets held by Tru-Test or its subsidiaries in both New Zealand and overseas. Completion will combine scales, electric fencing and related products with Datamars' existing animal identification product portfolio. Datamars has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character, and Datamars has demonstrated financial commitment to the investment.

Datamars' major Canadian shareholder is the Caisse de Dépôt et Placement du Québec, an institutional investor founded by legislation to manage public pension and insurance plans. Datamars announced completion of its major shareholding in Tru-Test on 1 October 2018. See March 2018 for Datamars' consent to acquire Simcro Holdings, a world-known Waikato-based innovator in animal health delivery systems. Tru-Test began in 1964 with milk flow meters and became a world leader in agri-technology.

In 2013, after buying Dairy Technology Services (with a share issue) and Radian Technologies, it won NZ Trade & Enterprise's Supreme Award for International Business (NZ Herald, 27/9/13). In November 2016 and September 2014 Kestral Capital (Australia) got OIO consent to buy in, then to increase its shareholding of Tru-Test to half. With Datamars now the majority shareholder, Tru-Test is now merely a product line and a media announcement on Datamars' Website.

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Chinese To Lease Māori Land For Kawerau Particle Board Factory

Fenglin Wood Industry (New Zealand) Co Ltd China Public 51.4%; Yichuan Liu, Hong Kong [SAR] 48.6%) has consent to acquire a leasehold interest in approximately 33 ha (subject to final survey) at State Highway 34, Kawerau, being part of Computer Freehold Register 31322 (South Auckland); and investment in significant business assets to establish a business on the land. The lessor is Putauaki Trust (NZ Public 96%; Australian Public 4%). Price withheld under s.9(2) (b)(ii) of the Official Information Act.

The OIO states that this is Māori freehold land near Kawerau. Fenglin Wood intends to establish and operate a new particle board production facility which will be one of the largest single-line production lines in the Southern Hemisphere (maximum capacity 600,000m³ of particle board per annum). Key features include high safety, high efficiency and a high degree of automation.

The new facility is expected to create 110 direct fulltime jobs, introduce new technology, generate increased processing of primary products and export receipts, increase productivity and enhance domestic services, along with other benefits (in particular for local contractors and beneficiaries of the Putauaki Trust as lessors). The cost of the proposed development will exceed $100m and is expected to be completed by the end of 2024.

The NZ Herald (18/4/17) reports that the Fenglin Group is a leading Chinese wood industry group, listed on the Shanghai Stock Exchange. It has four large-scale wood-based panel plants in Guangxi's Nanning and Baise cities and in Guangdong's Huizhou City, including two medium-density fibre board facilities and two particle board facilities with a total capacity of 1.1 million m3 a year.

This deal results from a visit to two of these plants by representatives of Kawerau District Council, the Putauaki Trust, Toi-EDA, Eastern Bridge, New Zealand Trade & Enterprise and the Ministry of Foreign Affairs and Trade. Putauaki Trust is an Ahu Whenua Trust established in 1981, with approximately 800 shareholders who are predominately descendants of Te Pahipoto, hapu of Ngati Awa of Te Teko.

The Trust was impressed with the Fenglin Group's commitment to environmental sustainability. Putauaki Trust has rezoned 70ha of its land as industrial. The particle board plant site will be next to a proposed container terminal, also on Putauaki Trust land, and fully operational by 2020.

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More T&G Apples At Havelock North

T&G Global Ltd (BayWa Aktiengesellschaft 74%; China Public 11.6%; Legend Holdings Group, China PR 8.4%; NZ Public 5.1%; NZ Public and various entities 0.8%; various overseas 0.1%) has consent to acquire a leasehold interest in 18.9668 hectares at 207 Thompson Road, Havelock North, from Whare Roto Orchard Ltd (NZ 100%). Price withheld under s.9(2)(b)(ii) of the Official Information Act.

The OIO states that T&G Global is an established apple grower in NZ. The land is currently used for cropping and T&G intends to develop it as an apple orchard for Jazz, Envy and Lady in Red varieties. The proposed benefits are job creation and increased export receipts; which are factors of high relative importance under the current Ministerial Directive Letter.

This will increase land productivity and royalties for Plant and Food Research. The OIO is satisfied that the benefits from the investment are substantial and identifiable. This is the latest in a series of T&G Global land purchases for apple production - $16,691,134 worth in December 2016 alone. See also consents in February, June, August and December 2017, February, July and December 2016 (5) and November 2014.

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Cigna (US) Buys ANZ's OnePath Life

Cigna Corporation US Public 60.8%; various overseas 17.2%; The Vanguard Group, Inc., USA 7%; T Rowe Price Associates, Inc., USA 7%; UK Public 6%; Canada Public 1.9%) has consent to acquire 100% of ANZ Wealth NZ Ltd for a price which exceeds $100 million. The vendor is ANZ Wealth NZ Ltd (Australian Public 97.6%l NZ Public 1.3%; various overseas 1%), and the price is approximately $700 million.

The OIO states that OnePath is a licensed health insurance business that provides personal life, trauma and income cover, and certain types of business insurance in New Zealand. Cigna already operates in New Zealand. This acquisition will enable Cigna to provide broader insurance New Zealand and access a larger customer base. Consent is required because the value of OnePath's assets and the price exceed $100 million. Cigna has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character, and Cigna has demonstrated financial commitment to the investment.

Cigna describes itself as a global health insurance company selling in 30 countries, with 37,000 employees and more than 86 million customers. It was formed in 1982 by the merger of INA Corporation, which dates back to marine insurance in the 1790s, and Connecticut General Corporation, which originated as a State-owned insurance company in 1865. Its subsidiaries provide medical, dental, disability, life and accident insurance and related products, through employers, government organisation, NGOs, unions etc., including Medicare and Medicaid in the US.

OnePath is NZ's fifth largest insurance provider, managing insurance products sold to ANZ customers since 2002 when Australian bank ANZ and global financial services group ING formed a joint venture. In 2003, ING bought life insurance company Club Life and in 2009, the business became fully owned by ANZ, and rebranded to OnePath in 2010.

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More Land For Danone Milk Powder Plant

Danone Nutricia NZ Ltd (European Public 42.9%; US Public 35.4%; various overseas 21.7%) has consent to acquire approximately four hectares at 1865-1905 Clutha Valley Road, Greenfield, from RG Paterson Holdings Ltd (NZ public 100%). Price withheld under s.9(2)(b)(ii) of the Official Information Act. The OIO states that this land is adjacent to land owned by Danone Nutricia on which it operates a milk processing plant.

This produces dairy nutritional powders suitable for infant formulas. Danone intends to expand the facility. In the short term, this will be focused on reducing the environmental impact of the facility by adding a new boiler and waste water plant, and adding car parking. The expansion is likely to make the facility more efficient and productive, result in three new jobs and reduce energy costs and carbon emissions.

So, what's the extra four hectares actually for - car parking? Or disposing of dairy waste water? French transnational Danone started making yoghurt in Barcelona in 1919 and now describes itself as a world leader in four businesses: Essential Dairy and Plant-Based Products, Early Life Nutrition, Medical Nutrition, and Waters. Nutricia is its Australian division for early life formulas. Danone products are sold in 120 countries, with 53% of sales in USA, Canada and Europe.

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Invesco Asia Fund Buys Half ANZ Centre, Auckland CBD

NZRE Swan Ltd (North American Public 52%; Switzerland Public 20%; Asian Public 9%; Luxembourg Public 8%; Netherlands Public 7%; Germany Public 4%) has consent to acquire an undivided half share freehold interest in non-sensitive land (including a building) at the ANZ Centre, 23 Albert Street, Auckland. The other half share will be retained by the vendor Precinct Properties Holdings Ltd (NZ Public 70.3%; United Arab Emirates Public 19.35%; various overseas 10.35%). The price is $181 million.

The OIO states that NZRE Swan is a special purpose vehicle of the Invesco Real Estate Asia Fund. Established in Luxemburg, Invesco invests and manages a portfolio of real estate assets in the Asia Pacific Region. This acquisition is a half share in a commercial office tower and ground floor cafe space, including an outdoor kiosk cafe. There are tenancy arrangements in place for office space, cafes and car parks.

The partial sale is in line with Precinct Properties' business strategy, allowing it to recycle its capital into higher yielding development opportunities. NZRE Swan and Precinct Properties will continue running the building together as a commercial property. NZRE Swan has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character, and NZRE Swan has demonstrated financial commitment to the investment.

Luxembourg is well known for its low company tax, so that'll be one of Invesco's 20 branch offices organising this deal. Wikipedia says Invesco is an investment management company based in Atlanta, Georgia (where it began in 1978 when a bank hived off its investment department), and is listed on the New York Stock Exchange.

Although, from 1988 to 2007, it was British and listed on the London SX, followed by a short stay in Bermuda. With various mergers and acquisitions, in December 2017 it had $US937.6 billion in "assets under management". In 2004, it was done for improper trading by the Attorneys General of New York and Colorado and the Securities and Exchange Commission, and settled for $US450 million.

Precinct Properties describes itself as New Zealand's only NZX-listed city centre specialist investing predominately in premium and A-grade commercial office property. It currently owns 14 buildings: Auckland's PwC Tower, AMP Centre, ANZ Centre, Zurich House, HSBC House, Mason Brothers Building, 12 Madden Street and Commercial Bay; and Wellington's AON Centre, Dimension Data House, No. 1 and No. 3 The Terrace, Pastoral House, Mayfair House and Bowen Campus.

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Consent No. 201810132 Fully Withheld

All information withheld - investment, asset value, applicant, vendor and background - but supposedly we can get more information from the applicant's law firm, Bell Gully.

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