DecisionConsent granted
Section 12(b) Overseas Investment Act 2005
Decision Date15 June 2017
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100% of the shares of G L Bowron & Co Limited which owns or controls a freehold interest in 6.2645 hectares of land at 2-12 Long St, Woolston, Christchurch. The consent also covers an internal restructure of the company group.
ConsiderationApproximately $17,559,000
ApplicantRich Development Limited
Heping Wang, China, People's Republic of (50.0%)
Hui Lyu, China, People's Republic of (50.0%)
VendorHatchi Sydney
Japanese Public, Japan (68.4%)
Various Public, Various (31.6%)
Background

G L Bowron & Co Ltd is an overseas-owned company that operates a tannery business in Christchurch. The Applicant is a wholly-owned subsidiary of Henan Prosper Skins and Leather Enterprise Co. Ltd (Henan Prosper), a Chinese company and one of the world’s largest tanner and processor of woolly skins.

The Applicant intends to expand the Bowron tannery business and take advantage of significant supply chain efficiencies and economies of scale between Henan Prosper's existing business and the Bowron tannery business. The Applicant intends to increase throughput and exports at the tannery over the next six years.

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 Act 2005
17(2)(a)(i) – Jobs
17(2)(a)(ii) – New technology or business skills
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Greater efficiency/productivity
17(2)(a)(v) – Additional investment for development purposes
17(2)(a)(vi) – Increased processing of primary products

More informationChris Bargery
Anderson Lloyd
P O Box 399
Shortland Street
Auckland 1140