| Decision | Consent granted Section 12(1)(b) Overseas Investment Act 2005 |
|---|---|
| Decision maker | Toitū Te Whenua Land Information New Zealand |
| Decision date | 19 March 2025 |
| Pathway | Sensitive land – Benefit test |
| Investment | Acquisition of up to 100% of the shares in ESR Group Limited |
| Value of New Zealand assets | Withheld under section 9(2)(b)(ii) of the Official Information Act 1982 |
| Applicant | MEGA BidCo United States 19% Luxembourg 9% Hong Kong 9% Other Asia 9% Qatar 7% United Arab Emirates 6% South Korea 5% Various 36% |
| Vendor | Shareholders of ESR Group Limited Asia-Pacific 45% North America 41% Europe 9% Various 5% |
| Background | The Applicant is majority beneficially owned by a consortium of private equity investors. It is buying up to 100% of the shares of Hong Kong listed company ESR Group Limited because the consortium considers a strategic transformation of ESR is best achieved as a privately owned company. ESR operates a real estate investment platform. It has indirect interests in New Zealand assets that are valued at less than 1% of the total transaction. The New Zealand assets include sensitive land located at James Fletcher Drive and Savill Drive, Otahuhu, Auckland. The industrial use of the property and the property itself will be unaffected by the investment. The main benefit to New Zealand is enhancing the country’s reputation as supportive of international investment when New Zealand assets form a very small, but inseparable, part of a global transaction. Consent was granted as the Applicant has met the investor test criterion and the investment is likely to benefit New Zealand. The Minister of Finance has decided that the investment is not contrary to New Zealand’s national interest. |
| More information | Tim Tubman Chapman Tripp (Auckland) PO Box 2206 AUCKLAND 1140 |