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Foreign investment in Aotearoa/New Zealand
Overseas Investment Office - July 2019 Decisions
Infratil And Brookfield Equity Funds Buy Vodafone NZ
Infratil Ltd, Brookfield Asset Management Inc., ICN JV Ltd and ICN JV Investments Ltd (NZ Public 37.4%; Canadian Public 22.2%; US Public 14.1%; various overseas 4.8%; Australian Public 3.8%; China Public 3.5%; UK Public 2.9%; Kuwait Public 2.9%; South Korean Public 2.3%; Saudi Arabian Public 2.1%, UAE Public 1.6%; German Public 1.5%; French Public 1.1%) has consent to acquire 100% of the shares in Vodafone NZ Ltd by a consortium of Brookfield Asset Management Inc. and Infratil Ltd through ICN JV Investments Ltd and its 100% subsidiary ICN JV Ltd, from TVodafone Europe BV (US Public 37.3%; UK Public 33%; various overseas 16.3%; Swiss Public 3.3%); German Public 3%; Norwegian Public 3%; French Public 2.8%; Canadian Public 1.3%), for $3.4 billion.
The OIO states that Vodafone NZ Ltd, as an indirect subsidiary of Vodafone Europe BV (a Netherlands-incorporated company), is one of New Zealand's leading telecommunications companies, and it is the New Zealand operating company of the Vodafone group. Brookfield is a Canadian registered corporation and a global alternative asset manager, with investments focusing on renewable energy, property, infrastructure and private equity. Infratil is an NZX/ASX listed infrastructure investor that invests in infrastructure assets that provide essential services, including in the energy, transport and social infrastructure sectors.
The applicants view the transaction as an opportunity to acquire a high-quality asset and secure long-term exposure to extensive fixed and wireless telecommunications infrastructure, and contribute to the next phase of growth in data and connectivity. They have satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character, and they have demonstrated financial commitment to the investment.
The sale of Vodafone NZ was announced on 14/5/19. One News Now reported that Vodafone's NZ business had been on the sales block since the Commerce Commission refused to let it merge with Sky TV in 2017. Vodafone NZ has about two million mobile customers compared to about 700 million for parent Vodafone Group
There was previous talk of selling the New Zealand unit through a share float and restructuring and axing hundreds of jobs to get the business in shape for sale. Infratil joined with the Superannuation Fund to buy the Shell service stations and reorganised the business into Z Energy, which it then sold off as an NZX-listed company.
Radio NZ (14/5/19) reported that Infratil is a NZ-owned investment company, with stakes in Wellington Airport, Trustpower, wind farm operator Tilt Renewables, and a data centre and retirement villages in Australia. Its CEO Marko Bogoievski was the Chief Financial Officer at Telecom (now Spark) until 2008. Brookfield Asset Management is a Canadian firm with over $US365 billion in assets under management. It used to own a stake in electricity lines company Powerco, which it sold in 2013, and forestry logistics company C3.
The pair have each committed just over $1 billion, with the balance coming from Vodafone NZ debt and a sale of shares to Vodafone NZ's executives. Infratil said it will look to a $400m capital raising for a portion its share, likely from existing shareholders. On announcement, the sale still needed approval by the OIO and the Commerce Commission. Infratil owns 51% of Trustpower which has expanded into the telecommunications market, but on 11/7/19 the Commerce Commission gave approval, saying competition won't be lessened (Dan Satherley, Newshub 11/7/19).
For other OIO consents for Brookfield, see September 2007, June 2008, November 2009 (PowerCo), July and November 2010, November and December 2011 (PowerCo), November 2013 (PowerCo), June 2016 August 2017 and April 2019. For OIO consents involving Infratil as part-owner of Trustpower, see March, May and August 1999, August 2000, April 2003, May, June and August October 2006, March and April 2008, and August and December 2005. For other Infratil OIO consents see June 1997, June and August 1998, March 2000, and April and September 2008.
Infratil was a Roger Award finalist in 2008 and 2009. "Don't Be Fooled Into Thinking That Infratil Is A NZ Company", CAFCA press release, 30/3/10.
Brookfield and Infratil were bidders for 2500 Christchurch state houses in 2017 (see John Minto Watchdog 145, and Watchdog 144).
Mediaworks And QMS Media Merge
MediaWorks Investments Ltd (US Public 79.2%; China Public 5.3%; Australian Public 4.1%; South Korean Public 3.4%; UK Public 2.5%; various overseas 5.6%) has consent to acquire significant business assets and sensitive land, being 100% of the shares in QMS NZ Ltd, QMS Sport NZ Ltd and QMS NZ Holding Ltd and QMS Media Ltd 's Australian Public 75.6%; various overseas 12.1%; Canadian Public 6.5%; NZ Public 5.9%) subscription of up to 40% of the shares in MediaWorks Investments Ltd. The transaction includes QMS Media and MediaWorks Investments acquiring interests in sensitive land, including:
- a leasehold interest in 4.4441 hectares at 200 Horokiwi Road, Horokiwi, Wellington;
- a freehold interest 0.0268 hectares at 52A New North Road, Auckland; and
- pieces of residential land used for billboard advertising and radio telecommunications equipment.
The OIO states that MediaWorks and QMS seek to merge their New Zealand businesses. MediaWorks is a NZ broadcaster operating through television, radio and digital platforms. It is ultimately owned by Tokyo Opportunities BV, which is owned by investment funds managed by Oaktree Capital Management LP. QMS is an ASX-listed outdoor media company in Australia and NZ, with a network of digital and static billboards, transit media, and other platforms. It is expected that the merger will harness the advantages of larger size and a diversified product and revenue base.
This should provide opportunities for growth and enhance the business's ability to act as a multi-platform advertising company. QMS and MediaWorks show that they have a track record of investments bringing benefit to New Zealand. The merger is also expected to increase advertising offerings in New Zealand, and enhance the viability of Tokyo Opportunities' acquisition of MediaWorks in 2013. The parties have satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character, and demonstrated financial commitment to the transaction.
The agreement to merge was announced in December 2018 with QMS receiving a material but not controlling share of the expanded MediaWorks company, and funds managed by Oaktree Capital Management retaining a majority (Scoop, 29/11/18).
On 22 May 2019 Mediaworks reported a net loss for the year ended December 2018 of $5.5 million on revenue of $302 million, with TV and digital up 3.4% and 25% respectively, but radio advertising, MediaWorks' biggest earner, dropped 3.4% (Scoop).
"Vulture fund" Oaktree Finance gained ownership of MediaWorks in 2015 when it bought out Westpac NZ and Royal Bank who had swapped debt for shares after the company went into receivership in 2013 (Matt Nippert, NZ Herald 29/4/15), then bought the minority shareholdings of TPG Capital and Bain Capital (Paul McBeth, NZ Herald 6/6/15).
Wikipedia describes Oaktree Capital Management is an American global asset management firm specialising in alternative investment strategies; it is the largest distressed investor in the world, and one of the largest credit investors in the world. The term "vulture fund" has been applied to Oaktree in Ireland (see Irish Times, 21/1/17 here, and here.
For OIO consents related to Mediaworks, see June 2007, December 2009, May 2004, August 2013. For Mediaworks' ownership of TV3 and radio stations, see Bill Rosenberg (2008) "News Media Ownership In NZ", and Wayne Hope and Merja Myllylahti (2002), "Media Communication Ownership In Aotearoa/NZ". For tax avoidance, see Murray Horton (2015) "Artful Transnational Tax Dodgers", and ditto (2014) "Corporate Welfare". Mediaworks was a Roger Award finalist in 2015.
Back to TopNew Forests Fund Buys Kennington Forest, Marlborough
Marberry Estate Ltd (ANZFF3 Ltd,wholly owned by ANZFOF3 NZ Pty Ltd, ultimately owned by The Trust Company (Australia) Ltd as trustee for the New Forests Australia NZ Forestry Operating Fund 3 which is wholly owned by overseas investment funds and managed by New Forests Asset Management Pty Ltd), has consent to acquire approximately 216.9 hectares at Kenningtons Road, Marlborough from Kennington Forestry Co. Ltd (NZ 100%). Price withheld under s.9(2)(b)(ii) of the Official Information Act.
The OIO states that Marberry Estate has applied for consent under the special test relating to forestry activities set out in section 16A (4) of the Overseas Investment Act. Marberry Estate is managed by New Forests Asset Management Pty Ltd, an Australian investment fund that specialises in investing in forestry assets. Approximately 194 hectares of the land is planted in mature commercial forestry.
Upon harvest of the existing commercial crop of trees, Marberry intends to replant the harvested commercial crop with a new crop of trees. This is the latest in a rapid series of New Forests acquisitions, including last month another under the Marberry Estate name in Pelorus Sound. See also May and June 2018, and February, September and October 2016.
Back to TopIssoria Offshore (UK) Buys Hakahaka And Underwood Forests
New Zealand Forest Industries Ltd Ltd (United Kingdom 100%) has consent to acquire 71 hectares of land at Tumbledown Bay Road, Port Underwood, Marlborough, from Marlborough Country Ltd (NZ 52.1%; various overseas 47.9%), at a price withheld under s.9(2)(b)(ii) of the Official Information Act. The OIO states that Issoria Offshore Ltd has been granted consent to acquire the parent company of NZ Forest Industries.
NZ Forest Industries has been granted consent under the special test relating to forestry activities set out in section 16A (4) of the Act, to acquire Hakahaka Forest, a small forestry block adjacent to Underwood Forest. NZ Forest Industries intends to continue to use the land as it currently is and to extend the existing pine tree forest from 56% to 70-77% of the land. Where commercial forest is unable to be planted, it may plant manuka over a minor portion of the Land. There are otherwise no other features relevant to the special forestry test.
But wait, there's more. Issoria Offshore Ltd (UK 100%) has consent to acquire sensitive land, being NZFI Holdings (Singapore) Pte. Ltd which indirectly owns a freehold interest in 1,116 hectares of land (Underwood Forest), Tumbledown Bay Road, Port Underwood, Marlborough, from Attalus Global Ltd (St Kitts and Nevis 100%); price withheld under s.9(2)(b)(ii) of the Official Information Act. Issoria has been granted consent under the special test relating to forestry activities set out in section 16A (4) of the Act to acquire NZFI Sing. NZFI Sing's subsidiary, NZ Forest Industries Ltd, owns Underwood Forest in Marlborough.
The OIO states that Issoria intends to increase the planted area to approximately 75%, with small portions used for manuka planting and native bush. The OIO is satisfied the land will be used nearly exclusively for forestry activities, trees will be harvested following harvest; existing conditions of consent will continue to be implemented to protect indigenous flora and fauna, allow walking access, and to protected historic heritage.
The Land does not include any residential land. Following the demolition of a homestead on the land and construction of the office, the land will not be used for any residential purposes. The land also does not contain special land. So, in this juggle of ownership, the new restriction on overseas ownership of residential property has been resolved by reducing our rural housing stock by one.
Issoria is a type of butterfly - here today, gone tomorrow. Founded in 2016, Issoria is London-based, with 11-50 employees. Its Website describes the business as a change management consultancy, provided by a global network of 5,000+ consultants on a referral only basis. Sounds like Uber for management advice.
But with an eye out for investment opportunities: "Issoria's growth funding partner - ABN AMRO Commercial Finance, which has over $2.2 billion worth of funds in use across its client base, has committed to providing ongoing funding to cover business growth across 80 countries around the world". UK "offshore" companies offer "Privacy, Asset protection, Reduced tax liability, Protection against lawsuits, Flexible business laws, Ease of operation, Confidentiality" - i.e. it's a tax haven device. It's high time the OIO considers the good character and nature of the company, not just the 'individuals responsible for the investment'.
Back to TopCraigmore And GlenSilva Buy Wairarapa Forest And Farm
Kauri Forestry LP (Switzerland 93%; Germany 7%) has consent to acquire approximately 4,273 hectares at 134 Lagoon Hill Road, Tuturumuri, South Wairarapa, from Stonehaven Trustee Ltd Ltd as trustee of the Stonehaven Trust (NZ 100%), price withheld under s.9(2)(b)(ii) of the Official Information Act. The OIO states that Kauri Forestry has applied under the special test relating to forestry activities set out in section 16A (4) of the Act. The land is currently in use as a dry stock farming operation, plus 1,341 hectares of existing forest.
Kauri Forestry will investigate subdivision and sale of approximately 594 hectares of the farmland, including all or most of the six dwellings. It will plant and maintain a commercial forest predominately of radiata pine on approximately 2,646 hectares of the remaining land (including the existing forest). Most of the new forest will be planted in the winters of 2020 and 2021, although some may occur in 2019. The expected rotation time for trees is between 25 to 30 years.
Kauri Forestry LP is Craigmore Forestry Group plus, apparently, Swiss money. It is on NZ's limited partnership register listing just Craigmore as partner; its 2019 return cites Financial Markets Conduct Act Schedule 1 exclusions for "wholesale investors". It holds all the shares of Kauri Forestry Opco Ltd, registered 22 June 2018.
On 5 November 2018 Craigmore described its No. 1 Forestry Fund, established 2010, as being NZ's largest afforestation programme in 2010-12, and announced "reinvigoration" of its portfolio with the establishment of the Kauri Forestry LP - a joint venture with German partners GlenSilva. Craigmore said GlenSilva was part of the House of Westphalen Group, one of Germany's largest owners and operators of agricultural and forestland.
GlenSilva GmbH's Website says it was founded by Matthias, Graf (Earl) von Westphalen who owns and manages sizeable family-owned agricultural and forestland, and was previously an investment portfolio manager. The Graf von Westfphalen title is currently used by one of Germany's largest law partnership, providing global advice services on tax, trade law, private and venture capital investment and other areas.
See consents of May 2019 related to a bunch of orchards, with Silvanus Vermögensverwaltungs-gesellschaft mbH (translation: "Asset Management") taking up 49% of Craigmore Permanent Crop Ltd Partnership. For more on the Craigmore Farming Group, including its foreign funding, see commentaries of April 2018, May, August and December 2017, June, July and September 2015, March, April, May, June, July, August and November 2014, February, March, November and December 2013, and June 2012.
Back to TopOIO Gives Metlifecare Consent To Expand Kerikeri Retirement Village
Metlifecare Ltd (NZ Public 69.2%; Australian Public 18.6%; US Public 6.4%; various overseas 5.8%) has consent to acquire approximately 0.2650 hectares at 37B Cobham Road, Kerikeri, from Kerikeri RSA Trust Fund Inc (NZ 100%) for $253,500. The OIO states that this consent has been granted in accordance with the increased housing test set out in Schedule 2(11) of the Act. Metlifecare is one of New Zealand's largest retirement village operators. The land is residential, but not otherwise sensitive land. The land will be incorporated into the adjoining Oakridge Villas retirement village, allowing the construction of several new independent living units.
See April 2018 June and August 2012 for OIO consents for other land acquisitions. The NZX www.nzx.com/companies/MET/analysis describes Metlifecare as a publicly-listed retirement lifestyle company, established in 1984 and listed in 1994. It is New Zealand's second largest village operator with a portfolio of retirement villages around the North Island, offering a range of care levels from independent living to specialist aged residential care. It targets premium locations in Auckland, Hamilton and the Bay of Plenty and a growing land bank of quality sites. Net profit after tax reported 29.8.2019: $39.2m.
Metlifecare Ltd arose out of a previous life as an insurance business, Metropolitan Lifecare. See October 2005 and April 2009 for a takeover by FKP Ltd and Macquarie Group Ltd, Australia. See February and August 2009 for an Australian share shuffle and July 2012 for a merger with Vision Senior Living Ltd and Retirement Village Investments Ltd, Australia
Back to TopOIO Gives Ryman The Rubber Stamp
Ryman Healthcare Ltd (NZ 68.4%; USA 10.7%; Australia 3.6%; Canada 2.2%; UK 2.1%; various 13%) has consent for 20 investments in residential (but not otherwise sensitive) land, from a "not yet determined" vendor for a "not yet determined" price. The OIO states that Ryman is a publicly-listed retirement village operator that acquires residential land to develop into retirement villages, being long-term accommodation facilities under the Act.
The OIO says it is satisfied Ryman has demonstrated that residential land acquired under this standing consent is likely to be used in the construction of, or an increase of the number of dwellings in, a long-term accommodation facility, per Schedule 2 of the Act. This standing consent (for a maximum of 20 transactions by 31 July 2022) will permit Ryman to acquire up to a total of 500 hectares of residential (but not otherwise sensitive) land in New Zealand.
Ryman Healthcare is the largest provider of retirement living and care options for New Zealanders over the age of 70. Its 31 villages include townhouses, apartments, serviced apartments and care centres with rest home, dementia and hospital-level care. It was established in Christchurch in 1984 and NZX listed in June 1999 and is one of the largest companies in the NZX 50 Index.
Ryman expanded into Australia in 2012, now owning nine sites including its first village in Melbourne and four more to be opened by 2020. NZX reports that Ryman expected in total 12 more sites to be under construction in 2019, and that its year-to-March 2019 profit after tax (including unrealised fair value gains on investment property), was $326 million. Wikipedia notes that Ryman has not had to raise capital since 1999, funding all development from operational cashflows.
Aged care is State-funded through District Health Boards, and until July 2017 its predominantly female carers were grossly underpaid. The property side of Metlifecare's and Ryman's businesses is not subject to capital gains tax. NZ Council of Trade Unions (since retired) Economist Bill Rosenberg reports Ryman's effective tax rate on its overall revenue to be 1.7% tax (E Tu presentation, 5/9/18).
Rather than ownership title to a unit in a village, occupation rights are effectively interest free loans that a resident provides to a retirement village that roughly matches the value of the property, which is returned when the resident leaves, minus a fee and sometimes also minus deferred management fees (Tax Working Group: "Effective Company Tax Rates In NZ", April 2018). Ryman retains the capital gains, which are tax free. The OIO therefore is therefore treating Ryman's business as temporary accommodation, as if it were hotels for tourists - despite Ryman meeting the 25% overseas ownership criteria and the new restrictions on overseas ownership of residential and rental housing.
See also articles by Alistair Duncan, "Fair 'Share' For Aged Care", Watchdog 130, August 2012 and "Aged Care Operators Spin Gold From Silver", Watchdog 148, August 2018 and by Maire Leadbeater, "Who Should Look After Older People Who Need Residential Care?", Watchdog 125, December 2010.
Back to TopChinese Yili Group Buys Westland Dairy Coop
Hongkong Jingang Trade Holding Co. Ltd (China 99.9%) has applied for consent to acquire 100% of the fully paid ordinary shares of Westland Cooperative Dairy Company Ltd (Westland), and an indirect interest in approximately 4.8 hectares of residential land, from the shareholders of Westland Cooperative Dairy Company Ltd (NZ 100%) for $245.50 million.
The OIO states that the Inner Mongolia Yili Industrial Group Co., through the Hongkong Jingang Trade Holding Co. Ltd, has been granted consent to acquire Westland. Yili is one of the largest dairy product processors in China and is listed on the Shanghai Stock Exchange. Yili markets and sells liquid milk, milk powder, yoghurt, ice cream, and cheese.Through Hongkong Jingang Trade Holding, Yili operates Oceania Dairy Ltd, which collects and processes milk from South Island dairy farmers. Hongkong Jingang Trade Holding wants to acquire Westland to extend its New Zealand operations and Yili's access to high quality dairy products.
Westland is a dairy cooperative, predominantly owned by supplier-shareholders. It has 573 employees in New Zealand and exports approximately 87.5% of its dairy products. It owns two milk processing plants in Hokitika and Rolleston. It also owns small portions of residential land adjacent to those factories, used primarily for noise buffers to plant operations. The residential land is sensitive under the Overseas Investment Act 2005 and requires consent.
The processing plants are not located on sensitive land and are not subject to consent. Hongkong Jingang Trade Holding 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 has demonstrated financial commitment to the investment. Hongkong Jingang Trade Holding has satisfied the OIO that the residential land is likely to continue to be used for incidental and non-residential use, being a noise buffer and accommodation for factory workers.
Westland's Website says on 4 July 2019 shareholders voted for a Scheme of Arrangement that allowed Jingang to acquire Westland at $3.41 a share, being a total enterprise value of $588 million. Farmers will receive a minimum of the Fonterra farm gate milk price for ten seasons, starting from 1 August 2019. Earlier speculation had placed Canadian company Saputo as the front runner to buy Westland (Stuff, 19/3/19).
Shanghai-listed Yili already owns Oceania Dairy Group in Glenavy, which it acquired in 2013 and invested approximately $660 million in establishing milk powder, infant formula and ultra-high temperature (UHT) production lines with output going to Yili's factories and supply chain in China.
See Scoop for Social Credit's objections to China's purchase of this strategic stake in the NZ dairy industry; it reminds us that in 1935 dairy and other industry organisations were supported with legislation and 1% State loans.
Wikipedia describes the Yili Group as a State-owned dairy company processing and manufacturing of milk products, including ice cream, milk tea powder, sterilised milk and fresh milk under the Yili brand, powdered milk under Pro-Kido brand, and organic milk under Satine brand. It is headquartered in Hohhot, Inner Mongolia. Its main competitor in China is Mengniu. NZ Herald, 2/8/19, describes Yili as one of the largest dairy producers globally; in fiscal year 2018, its gross revenue was about $NZ7.58 billion, a 16.9% increase from the previous year.
Back to TopWaikato-Tainui Leases To Investor Partnership For An Inland Port At Ruakura
Ruakura Inland Port LP , (Waikato Iwi, NZ 50%; Brookfield Infrastructure Fund II 33.5%; British Columbia Investment Management Corporation, Canada 5.5%; GIC Private Ltd, Singapore 5.5%; Qatar Investment Authority, Qatar 5.5%) has consent to acquire a leasehold interest in up to 30 hectares in the following properties:
- 19.4964 ha. at 245 Ruakura Road, Hamilton;
- 0.4693 ha. at 295A Ruakura Road, Hamilton;
- 2.4960 ha. at 4 Percival Road, Ruakura;
- 1.1698 ha. at 316 Ruakura Road, Hamilton;
- 1.0708 ha. at 318 Ruakura Road;
- 0.1173 ha. at 295 Ruakura Road, Hamilton;
- 0.4969 ha. at 313 Ruakura Road, Hamilton; and
- 263.5580 ha. at 310 Ruakura Road, Hamilton
From Ruakura Ltd (Waikato Iwi, NZ 100%). Price withheld under s.9(2)(b)(ii) of the Official Information Act.
The OIO states that Ruakura Ltd and C3 Ltd propose to establish a joint venture in the form of a limited partnership, Ruakura Inland Port LP, to develop and operate a new inland port at Ruakura, near Hamilton. The planned inland port will be an intermodal logistics centre for the processing of freight sent to or from the "traditional" ports. Ruakura Ltd is involved in property investment and development for the benefit of Waikato-Tainui Iwi.
A particular focus is the Ruakura development, which is expected to become New Zealand's largest integrated commercial and lifestyle development. The inland port will be the cornerstone of this project. C3 Ltd, the overseas owned joint venture partner, is New Zealand's largest on-wharf logistics company. It is part of the LINX Group of companies. The LINX Group provides logistics services throughout Australasia. The construction of the inland port is estimated to bring in additional development capital in the vicinity of $10 million and will create an estimated 58 fulltime equivalent (FTE) jobs during its construction phase.
Five permanent FTE jobs will be created once the inland port operations begin with a further six FTE jobs estimated to be phased in during the first two years. Because the inland port will result in increased use of rail for freight transport, there will be a number of consequential benefits: a reduction of freight road trips; reduced carbon emissions; more efficient freight movement; and added competition between providers of freight services resulting in improved domestic freight and rail services.
"The inland port will be an important and enduring asset for the Waikato-Tainui Iwi. The land will remain 100% New Zealand owned and 50% of the joint venture entity will remain owned by New Zealanders. The investment accords with the Government's commitment to the principle of rangatiratanga set out in the Treaty of Waitangi. This investment will give the Waikato-Tainui Iwi the opportunity to forge their own destiny and delivers substantial and identifiable benefits for all New Zealanders. This is precisely the kind of high-quality overseas investment the Government wishes to encourage".
Back to TopMalaysians To Build 15 Townhouses For Sale In Avondale, Auckland
357NWR Ltd (Malaysia 100%) has consent to acquire residential (but not otherwise sensitive) land under the increased housing test, being 0.002 hectares at 3 New Windsor Road, Avondale, Auckland and 0.2054 hectares at 5 and 7 New Windsor Road, Avondale, Auckland, from Craftwell Ltd (Malaysia 100%) for $2,546,526.
The OIO states that 357NWR Ltd is an NZ registered company established for acquiring and developing these investment properties. To meet the increased housing test, 357MWR proposes to remove the two existing dwellings and construct 15 new townhouses. The construction will be completed in stages, with all 15 townhouses anticipated to be completed and sold by December 2024. 357NWR considers this is likely to meet the required outcomes, being an increase in the number of residential dwellings on the land, the applicant on-selling all interests in the residential land by December 2024; and the applicant or related persons must not occupy the land.
Back to TopOil Man Buys More Wairoa Forest
Te Au Ltd (Hugh Lane-Spollen, Singapore 100%) has consent to acquire approximately 710.9 hectares at 867 Mahanga Road, Mahia, Wairoa, from the Rough Family Trust (NZ 100%) for $5,500,000. The OIO states that Te Au has applied for consent under the special forestry test relating to forestry activities set out in section 16A (4) of the Act. The land is known as Te Au Station and is currently used as a sheep and beef farm.
Te Au will subdivide and sell off the dwelling that is not required for forestry activities, and plant approximately 460 hectares as a commercial forest. The remainder of the land includes existing indigenous forest or land unsuitable for planting. The commercial forest is due to be harvested in stages from around the year 2045 and replanted following harvest. See commentary of May 2019 on oil man Lane-Spollen in regard to another Wairoa block for forestry and one in Eketahuna.
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