Decision Summary - Core 3B Holdings (New Zealand) Limited

Decision number 200820004
Application number 200810034
Date 8 July 2008
Offeror/applicant Core 3B Holdings (New Zealand) Limited
Ultimate applicant beneficial ownership 100 percent - Australia, Australian Public
Beneficial overseas ownership
- Asset current N/A
- Asset proposed N/A
- Share current 68.2247 percent
- Share proposed 100 percent
Offeree(s)/seller(s) Premier Hotels Christchurch Limited
31.25 percent - United Kingdom, InterContinental Hotels Group PLC
29.94 percent - New Zealand, Skyline Enterprises Limited
9.1455 percent - United Kingdom, Aspinall family
9.1023 percent - United Kingdom, John Aspinall Foundation
7.2632 percent - United Kingdom, United Kingdom Public
6.1637 percent - Australia, Packer (Kerry)
4.6219 percent - United Kingdom, The Osborne Family Trust
1.8332 percent - New Zealand, Southern Equities Limited
0.6781 percent - Australia, Packer (James)
Business activities Accommodation - Hotel/Motel/Lodge
Details of land involved 0.5732 hectares of leasehold situated at 70 Kilmore Street, Central Christchurch being CB30F/80 (Canterbury Registry).
Regions involved Canterbury
Total consideration $61,500,000
Consent sought To acquire up to 100 percent of the shares in Victoria Hotels (Christchurch) Limited.
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the Applicant has business experience and acumen relevant to and is demonstrating financial commitment towards the investment. The Overseas Investment Office is further satisfied that the persons who exercise control over the Applicant are of good character and not the kind of persons referred to in section 7(1) of the Immigration Act 1987.

Background to the Investment:
Eureka wishes to purchase the Crowne Plaza Hotel in Christchurch to add to the portfolio of hotels that it controls on behalf of its investors.

Outline of the Investment:
The Applicant is purchasing all the shares in the New Zealand company that holds a 99-year lease over the land on which the Crowne Plaza is built.

Rationale for the Investment:
Purchasing the land will allow the Applicant to:

  1. invest in refurbishing the Crowne Plaza Hotel; and
  2. extract a return on investors' capital from the operation of the hotel.

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

  1. Overseas Investment Act 2005
    1. s17(2)(a)(i) - the creation of new job opportunities as a result of refurbishing the hotel;
    2. s17(2)(a)(iv) - enhanced domestic services in the form of improved facilities at the hotel; and
    3. s17(2)(a)(v) - additional investment introduced to New Zealand to refurbish the hotel.
  2. Overseas Investment Regulations 2005
    1. (iv) r28(e) - previous investment in the Intercontinental Hotel and Grand Plimmer Complex, both in Wellington.
Contact James Martin
Kensington Swan
P O Box 10246
WELLINGTON 6143

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