Decision Summary - Brookfield Multiplex Developments (NZ) Limited

Decision number 200810059
Application number 200810023
Date 20 June 2008
Offeror/applicant Brookfield Multiplex Developments (NZ) Limited
Ultimate applicant beneficial ownership 59.72 percent - Canada, Canadian Public
35.98 percent - United States of America, United States Public
4.3 percent - Various, Various overseas persons
Beneficial overseas ownership
- Asset current 0 percent
- Asset proposed 100 percent
- Share current N/A
- Share proposed N/A
Offeree(s)/seller(s) Strand Investment Properties Limited of New Zealand
Business activities Property & Business Services - Property
Details of land involved 0.7774 hectares of freehold situated at 6-10 The Strand & 19-29 Hurstmere Road, Takapuna, North Shore City being CTs NA93C/394 and NA135D/560 (North Auckland Registry).
Regions involved Auckland
Total consideration $13,000,000
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:
The proposed investment involves acquiring the Land to develop a mixed use facility at Takapuna Beach named "Gateway Takapuna". Gateway Takapuna will include 100 premium residential apartments, 2,028m2 of commercial space, 4,192m2 of retail space, and 378 basement car parking spaces. The development will occur in two stages and will maximise through-site pedestrian linkages between Hurstmere Green and Takapuna Beach.

Rationale for the Investment:
The proposed investment is an extension of the Applicant's existing New Zealand operations and fits well within the Multiplex Group generally as:

  1. The development of the land will provide long-term sustainable returns; and
  2. The investment provides limited liability to Multiplex through the joint venture arrangement.

The proposed investment will or is likely to benefit New Zealand (or any part of it or group of New Zealanders) having regard to the following factors:

  1. Overseas Investment Act 2005:
    1. s17(2)(a)(i) - Creation of job opportunities.
    2. s17(2)(a)(v) - Additional investment for development purposes.
    3. s17(2)(e) - Adequate public walking access.
  2. Overseas Investment Regulations 2005:
    1. r28(a) - Consequential benefits.
    2. r28(b) - Key person in key industry.
    3. r28(c) - Adversely affect New Zealand's image overseas.
    4. r28(e) - Previous investments of benefit to New Zealand.
Contact Bill Sandston/Alistair Law
Chapman Tripp
PO Box 2206
Auckland 1140

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