DecisionConsent granted
Section 12(b) Overseas Investment Act 2005
Decision date1 April 2014
Investment

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 100% of the shares of China Merchants Pacific (NZ) Limited which owns or controls a freehold interest in approximately:

  • 4.5112 hectares of land at Chatham Hill, Gulf Harbour; and
  • 10.9114 hectares of land at Matua Road, Huapai.
Consideration$55,520,300
ApplicantChina Merchants Properties Development Limited
Chinese Government, China, People's Republic of (100.0%)
VendorChina Merchant Holdings (Pacific) Limited
Chinese Government, China, People's Republic of (82.44%)
Various overseas persons (17.56%)
Background

The transaction reflects an intragroup transfer, which results in an increase in China Merchant Group Limited’s ultimate control of the target China Merchants Pacific (NZ) Limited from 82.44% to 100%. The rationale is to transfer the target’s property development activities from the Vendor (whose core business is developing toll roads) to the Applicant whose core business aligns with those activities.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'benefit to New Zealand' criterion was satisfied by particular reference to the following factors:

Overseas Investment Regulations 2005
28(c) – Affect image, trade or international relations
28(e) – Previous investments
28(f) – Advance significant Government policy or strategy

More informationChris J Parke/Alex Welch
Kensington Swan
Private Bag 92-101
AUCKLAND