Decision Summary - Retirement Care (NZ) Limited

Decision number 200810048
Application number 200720059
Date 27 May 2008
Offeror/applicant Retirement Care (NZ) Limited
Ultimate applicant beneficial ownership 100 percent - Australia, Australian Public
Beneficial overseas ownership
- Asset current 0 percent
- Asset proposed 100 percent
- Share current N/A
- Share proposed N/A
Offeree(s)/seller(s) Nelson Diocesan Trust Board of New Zealand
Business activities Health & Community Services - Community Services
Details of land involved 2.5418 hectares of freehold situated at 618 Main Road, Stoke, 67-81, 82, 84 and 84A Neale Avenue, 30 Putaitai Street, 5, 5A, 6, 7, 7A and 8 Andrew Street and 13 Pateke Street, Stoke, Nelson being CTs NL11C/286, NL118/125, NL13A/896, NL13A/895, NL13A/894, NL13A/893, NL8C/36, NL3C/620, NL127/109, NL130/77, NL141/53 and NL127/113 (Nelson Registry).
Regions involved Nelson/Marlborough
Total consideration CONFIDENTIAL
Consent sought To acquire an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area by the regulator under section 37.
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment.

The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Outline of the Investment:
Retirement Care NZ Limited (RCNZ) proposes to acquire the relevant land which comprises properties that are designated for the purpose of a retirement village, but are not currently used for such purposes, and a rest home situated at 82 Neale Avenue. RCNZ acquired the rest home business (including a leasehold interest in the Neale Avenue property in November 2005).

The properties that are not currently used as a rest home contain fifty- eight units that are occupied by elderly persons subject to short term tenancies and licence to occupy arrangements. RCNZ advises that these properties will be phased into use as a retirement village following the acquisition.

Rationale for the Investment:
Funds managed by Macquarie Bank Limited have made several acquisitions in this sector in New Zealand, Canada and Australia. The acquisition of the relevant land is part of the focus of certain Macquarie Bank Limited managed funds on the aged care sector and will increase the size of the New Zealand portfolio of aged care assets.

The application has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'benefit to New Zealand' criterion was satisfied, by particular reference to the following factors:

  1. Overseas Investment Act 2005:
    1. s17(2)(a)(i) - Creation/retention of jobs;
    2. s17(2)(a)(v) - Additional investment for development purposes;
  2. Overseas Investment Regulations 2005:
    1. r28(e) - Previous investments; and
    2. r28(f) - Advance significant Government policy/strategy.
Contact Graeme Quigley/Wharerimu Iraia
Russell McVeagh
PO Box 8
AUCKLAND

Download a printable version of this summary (pdf 26KB).

top