Decision number200620021
Application number200620004/200620030
Date1 August 2006
Offeror/applicantGE Custodians as trustee of the GE NZ Warehouse Fund #2
Ultimate applicant beneficial ownershipEDIT
Beneficial overseas ownership 
- Asset current100 percent
- Asset proposed100 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)St George Bank New Zealand Limited
100 percent - Australia, St George Bank Limited
Business activitiesFinance & Insurance - Financial Institutions
Details of land involvedNone
Regions involvedVarious
Total consideration$572,858,890
Consent SoughtTo acquire property being to acquire a mortgage portfolio from St George Bank New Zealand Limited.
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.

St George Bank Limited, a shareholder of St George Bank New Zealand, has undergone a full review process in respect of its New Zealand operations in conjunction with the Foodstuffs companies who are its joint venture partners in St George New Zealand Limited which trades under the name of Superbank. Following this review it has been decided that St George Bank New Zealand Limited should exit the residential lending market in New Zealand, and commence a sale process in respect of its loan portfolio. The Applicant as trustee of the GE NZ Warehouse Fund #2 (the Trust) proposes to acquire the mortgage portfolio.

The Trustee, the Manager, the Beneficiary and the Settlor are indirect wholly owned subsidiaries of the United States of America conglomerate General Electric Company (General Electric). The Trust is part of the consumer finance division of General Electric which operates internationally though six business units, GE Infrastructure, GE Industrial, GE Commercial Financial Services, NBC Universal, GE Healthcare, and GE Consumer Finance.

GE Consumer Finance has initiated the proposed acquisition of the mortgage portfolio because the acquisition will increase its customer base and permit GE Consumer Finance to compete more effectively against other financial institutions.

ContactFrank Porter/James Gunson
Buddle Findlay
P O Box 1433
AUCKLAND