OIO Decision Summaries - September 2014

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

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 No.

201410023
201410052
201410055
201410061
201410090
201410092
201410095
 

Statistical information on Overseas Investment Office decisions for September 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 September 2014 and for the 2014 calendar year to date. 

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 June 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).

 September 2014January - September 2014January - September 2013
Number of approvals1310676
Net investment $69,273,465832,347,368663,344,035
Gross value of consideration105,414,6033,475,868,8793,213,772,658
Asset value36,982,000394,440,6541,995,379,000

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;

• QWIL Investments (NZ) Pty Limited’s proposed acquisition of a freehold interest in five vineyards located in Marlborough (Woolshed Vineyard), Canterbury (Home, Mound and Deans Vineyards) and Otago (Claim Vineyard) comprising approximately 596 hectares – a "net" investment of $45,843,200; and

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

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 September 2014 and for the 2014 calendar year to date.

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

 September 2014January - September 2014January - September 2013
Number of approvals98261
Net land area (ha)2,02118,29359,884
Gross land area (ha)2,13727,250154,954

In terms of "net" freehold land areas, 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 which owns or controls 4,471.8517 hectares of freehold land situated in South Canterbury – a "net" land area of 3,191.8155 hectares;  and

• Craigmore Farming NZ LP’s proposed acquisition of 2,721 hectares of freehold land situated at 7797 Hyde-Middlemarch Road Otago – a "net" land area of 2,445 hectares; and

• Ceol & Muir Inc’s proposed acquisition of 1,317.2122 hectares of freehold land situated at 1437 Manganui Road, Awakino, Northern Taranaki – a "net" land area of 1,317.2122 hectares.

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

 September 2014January - September 2014January - September 2013
Number of approvals41815
Net land area (ha)1227114,096
Gross land area (ha)221,11745,868

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

• ArborGen New Zealand Unlimited’s proposed acquisition of 95.29 hectares of leasehold land at 41 Hilda Road, Edendale, Southland – a "net" land area of 91.449 hectares; and

• 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 62.7493 hectares; and

• Morris, David and Benjiman Khan, Ian and Tonya Koblick and Schmuel Meitar’s proposed acquisition of mortgage interests in 34.892 hectares of land at Walter Peak, Queenstown – a "net" land area of 34.892 hectares.

Approvals under the Fisheries Act 1996

The table below show the net fishing quota for which consent was granted to overseas persons in September 2014 and for the 2014 calendar year to date.

 September 2014January - September 2014January - September 2013
Number of approvals000
Net tonnes of Annual Catch Entitlement000
Gross tonnes of Annual Catch Entitlement000
Net Quota Shares000
Gross Quota Shares000

Applications declined

The table below shows investments for which consent was declined in September 2014 and for the 2014 calendar year to date.

 September 2014January - September 2014January - September 2013
Number of declines000
Total proposed purchase price ($)000
Total proposed area to be acquired (ha)000

For more information contact:

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