The Overseas Investment Office has released the following decisions for this month.

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:

201301150 & 201320029
201320043
201320088
201320095

Statistical information on Overseas Investment Office decisions for January 2014

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 2014. 

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).

 January 2014January 2013
Number of approvals104
Net Investment $120,838,130Confidential
Gross value of consideration231,316,526Confidential
Asset Value00

In terms of net investment, the three largest approvals by the Overseas Investment Office in 2014 to date, that can be disclosed were for:

• SFL Holdings Limited’s proposed acquisition of up to 100% of the shares of Synlait Farms Limited – a “net” investment of $61,159,003;

• Auckland City Holdings Limited’s proposed acquisition of a leasehold interest in 205 Queen Street, Auckland – a “net” investment of $38,528,910; and

• Louis and Ronel Irvine’s proposed acquisition of 48.7401 hectares of freehold land situated at Bendemeer, Queenstown – a “net” investment of $725,000.

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 2014.

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

 January 2014January 2013
Number of approvals93
Net land area (ha)4,5262,529
Gross land area (ha)9,1872,529

In terms of “net” freehold land areas, the two largest approvals by the Overseas Investment Office in 2013 to date that can be disclosed were for:

  • SFL Holdings Limited's proposed acquisition of up to 100% of the shares of Synlait Farms Limited which owns or controls 4,471.8517 hectares of freehold land situated in South Canterbury - a "net" land area of 3,191.8155 hectares;1 and
  • New Zealand Standard Farm Limited's proposed acquisition of up to 100% of the shares of SFL Holdings Limited which owns or controls, through Synlait Farms Limited, 4,485.5102 hectares of freehold land in South Canterbury - a "net" land area of 1,170,0678 hectares.

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

 January 2014January 2013
Number of approvals20
Net land area (ha)860
Gross land area (ha)1750
In terms of “net” other interests in land areas, the two largest approvals by the Overseas Investment Office in 2014 to date that can be disclosed were for:
  • SFL Holdings Limited’s proposed acquisition of up to 100% of the shares of Synlait Farms Limited which owns or controls 87.9141 hectares of leasehold land situated in South Canterbury – a “net” land area of 62.74931 hectares;2 and
  • New Zealand Standard Farm Limited’s proposed acquisition of up to 100% of the shares of SFL Holdings Limited which owns or controls, through Synlait Farms Limited, 87.9141 hectares of leasehold land in South Canterbury– a “net” land area of 22.9328 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 2014.

 January 2014January 2013
Number of approvals00
Net tonnes of Annual Catch Entitlement00
Gross tonnes of Annual Catch Entitlement00
Net Quota shares00
Gross Quota shares00

Applications declined

The table below shows investments for which consent was declined in January 2014.

 January 2014January 2013
Number of Declines00
Total proposed purchase price ($)00
Total proposed area to be acquired (ha)00

For more information contact:

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

1The approvals involving SFL Holdings Limited and New Zealand Standard Farm Limited are related transactions.

2The approvals involving SFL Holdings Limited and New Zealand Standard Farm Limited are related transaactions.