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.

201620089
201710109
201710157
201710165
201720021
201720059
201720079
201720086

Statistical information on Overseas Investment Office decisions for December 2017

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 December 2017 and for the 2017 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 December 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).

 December 2017January – December 2017January – December 2016
Number of approvals1598136
Net investment $271,219,862Confidential4,378,792,008
Gross value of consideration3,611,965,394Confidential9,143,953,038
Asset value242,332,0002,983,928,0003,583,054,788

In terms of net investment, the three largest approvals by the Overseas Investment Office in 2017 to date, that can be disclosed were for:

  • NBS Holdings Limited’s proposed acquisition of up to 100% of the shares of Hanger Holdings Limited – a “net” investment of $660,000,000; and
  • Zhejiang Rifa Holding Group Co., Ltd’s proposed acquisition of up to 100% of the shares of Airwork Holdings Limited – a “net” investment of $203,132,157; and
  • Vero Insurance New Zealand Limited’s proposed acquisition of up to 100% of the shares of TOWER Limited – a net investment of $174,325,000.

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 December 2017 and for the 2017 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 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

 December 2017January – December 2017January – December 2016
Number of approvals116187
Net land area (ha)55717,38225,010
Gross land area (ha)4,35125,696362,1321

In terms of “net” freehold land areas, the three largest approvals by the Overseas Investment Office in 2017 to date that can be disclosed were for:

  • Nelson Forests Limited’s proposed acquisition of 9,454.0191 hectares of freehold land situated at Wairau Valley, Marlborough – a “net” land area of 9,170.3985 hectares; and
  • Monte Capital Limited’s proposed acquisition of approximately 1,583.1301 hectares of land at 558 Te Kumi Road, Waikura. Gisborne District – a “net” land area of 1,583.1301 hectares; and
  • BT Mining Limited’s proposed acquisition of 2,395.4288 hectares of freehold land in the Waikato and Buller districts from Solid Energy New Zealand Limited – a “net” land area of 1,214..4824 hectares.

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

 December 2017January – December 2017January – December 2016
Number of approvals42237
Net land area (ha)9,930221,75014,849
Gross land area (ha)33,924346,679103,7314

In terms of “net” other interest land areas, the three largest approvals by the Overseas Investment Office in 2017 to date that can be disclosed were for:

  • Orange Lakes (NZ) Limited’s proposed acquisition of 10,759.8303 ha of Pastoral Lease and Special Lease land at Hunter Valley Station – a “net” land area of 10,759.8303 hectares; and
  • BT Mining Limited’s proposed acquisition of 1,803.5673 hectares of leasehold land in the Waikato and Buller districts from Solid Energy New Zealand Limited – a “net” land area of 914.4086 hectares; and
  • Craigmore Dairy II LP’s proposed acquisition of 297 ha of leasehold land at 137 Te Pirita Road, Bankside, Selwyn - a “net” land area of 286.0036 hectares.

Approvals under the Fisheries Act 1996

The table below show the net fishing quota for which consent was granted to overseas persons in December 2017 and for the 2017 calendar year to date.

 December 2017January – December 2017January – December 2016
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 December 2017 and for the 2017 calendar year to date.

 December 2017January – December 2017January – December 2016
Number of declines222
Total proposed purchase price ($)660,450,000660,450,00011,030,000
Total proposed area to be acquired (ha)191982

The low level of applications declined is due to the following factors:

  • Applicants seek professional advice, and engage with the OIO, before submitting an application for consent.  They do not normally submit applications, and incur the associated costs, if they are unlikely to meet the criteria and factors test in the legislation. 
  • The OIO’s pre-acceptance quality assurance check results in around 25 percent of applications being rejected at the outset.  
  • The OIO advises applicants if it intends to decline (or recommend decline) their application. Applicants often withdraw their application rather than have it declined.  

These processes shows the rigour of the assessment process but is not reflected in the application declined figures. 

For more information contact:

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

 


Footnotes

1. Includes two consents relating to Hancock Natural Resource Group’s restructure of Taumata Plantations Limited which, owns the Carter Holt Harvey Forest Estate (Cases 201610079 and 201610081) each involving 111,094 ha. No sensitive land actually changed hands. The restructure had no effect on net hectares.

2. Includes a consent relating to TRG Allocation LLC to acquire control over 9,624 ha through management rights.  TRG Allocation LLC is not acquiring a beneficial interest in the land. (Case 201720086)

3. Includes a consent relating to TRG Allocation LLC to acquire control over 33,554 ha management rights.  TRG Allocation LLC is not acquiring a beneficial interest in the land. (Case 201720086)

4. Includes two consents relating to Hancock Natural Resource Group’s restructure of Taumata Plantations Limited which, owns the Carter Holt Harvey Forest Estate (Cases 201610079 and 201610081) each involving 40,790 ha.  No sensitive land actually changed hands. The restructure had no effect on net hectares