OIO Decision Summaries - January 2012

Back to Decision Summaries

The Overseas Investment Office has released the following decisions for January 2012.

Schedule of Deletions

Schedule of deletions in terms of section 17 of the Official Information Act 1982 and under the provisions of sections 9(2)(a) and/or 9(2)(b)(ii) and/or 9(2)(ba)(i) of that Act.

Case Number:
201110035

Statistical information on Overseas Investment Office decisions for January 2012

The following statistical information shows consents granted or declined by the Overseas Investment Office for the sale of New Zealand land, business assets and fishing quota to overseas persons.  It does not necessarily indicate that a sale has taken place or will take place.  In addition, if a transaction for which consent is granted does proceed to sale, that sale will always take place after the consent has been granted.  The settlement date will depend on the contractual arrangements between the vendor and the purchaser.

Value of investments to New Zealand

The table below shows the net dollar investment value to New Zealand and gross value of consideration of consents granted to overseas persons in January 2012.

Net investment dollars

“Net investment dollars” represent the total dollar value invested in New Zealand. For example, if a New Zealander sells a $100 million business to an Australian then the whole $100 million is added to the net investment total. However, if for instance the New Zealand asset was 100% Japanese owned, then $0 would be added to the net investment total. Thus, the net change in ownership of New Zealand assets is captured in the "total" net investment figure.

Gross value of consideration

“Gross value of consideration” represents the total consideration including GST (if any) to be paid for the acquisition of the assets, or the value attributed to those assets, under consents granted during the relevant period.  The “gross value of consideration” figure for January includes consideration paid by New Zealanders (for example, an acquisition of a business by a New Zealand/Australian joint venture), and will not reflect the net change in ownership of New Zealand assets.

Consideration

The reference to “consideration” refers to the amount proposed to be paid for the acquisition by the purchaser.

Asset value

“Asset value” refers to the value of assets of the person being acquired (or the person being acquired and its 25% or more subsidiaries)..

^{* This figure includes the grant of consent for Milk New Zealand Holding Limited to acquire the Crafar Farms.  This consent was set aside by the High Court on 15 February 2012 with a direction that Ministers reconsider their decision.}

In terms of net investment, the two largest approvals by the Overseas Investment Office in 2012 to date, that can be disclosed were for:

• Ding Furu’s proposed acquisition of 28.0433 hectares of freehold land situated at 150 Forest Road, Waitakere – a “net” investment of $5,000,000; and
• Bunnings Limited’s proposed acquisition of 0.6783 hectares of freehold land situated at 57-63 Molesworth Street, new Plymouth – a “net” investment of $4,265,000.

Total land area approved for sale to overseas persons

The tables below show the net and gross area of land (in hectares) for which consent was granted to overseas persons in January 2012.

Net hectares

"Net hectares" represents the total land area proposed to be transferred into foreign ownership under consents granted during the relevant period.  For example, if a New Zealander sells 10 hectares to someone from overseas, the whole 10 hectares is shown.  However, if the seller was a company that was 50% New Zealand owned and 50% foreign owned then only five hectares would show in that column. Five hectares represents the "net" change in foreign ownership of New Zealand land.

Gross hectares

“Gross hectares” represents the total land area proposed to be acquired under consents granted during the relevant period.  The figure will not show the seller’s New Zealand ownership share (if any) (unlike the “net hectares” figure) and will include land that is proposed to be acquired by New Zealand interests as well as overseas interests (for example, under a New Zealand/Australian joint venture).

Freehold land approved for sale

^{* This figure includes the grant of consent for Milk New Zealand Holding Limited to acquire the Crafar Farms.  This consent was set aside by the High Court on 15 February 2012 with a direction that Ministers reconsider their decision.}

In terms of “net” freehold land areas, the two largest approvals by the Overseas Investment Office in 2012 to date that can be disclosed were for:

• Milk New Zealand Holding Limited’s proposed acquisition of 7,892.5180 hectares of freehold land situated at various locations in the North Island – a “net” land area of 7,892.5180 hectares; and
• Ding Furu’s proposed acquisition of 28.0433 hectares of freehold land situated at 150 Forest Road, Waitakere - a “net” land area of 28.0433 hectares.

Other interests in land approved for sale (for example leases and crown pastoral leases)

In terms of “net” other interest land areas, the largest approval by the Overseas Investment Office in 2012 to date that can be disclosed were for:

• ANZCO Foods Limited’s proposed acquisition of 210 hectares of freehold land situated at Mossy Creek Road Ikamatua, West Coast – a “net” land area of 154.7096 hectares.

Approvals under the Fisheries Act 1996

The table below show the net fishing quota for which consent was granted to overseas persons in January 2012.

Applications declined

The table below shows investments for which consent was declined in January 2012.

For more information contact:

Overseas Investment Office
Land Information New Zealand
Ph: 04 462 4490
Email: oio@linz.govt.nz