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

Case number Applicant
201720076 Eclipx Fleet Holding (NZ) Limited
201720106 Horizon Oil International Limited

Statistical information on Overseas Investment Office decisions for 2018 Year to Date

The following statistical information shows consents granted or declined by the Overseas Investment Office for the sale of sensitive New Zealand land and significant business assets to overseas persons.  It does not necessarily indicate that a sale has taken place or will take place. 

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 for the 2018 calendar year to date and for the same time period in the preceding year. 

 

January - February

 2018

January - February

2017

Number of approvals

4

11

Net investment $

Confidential

595,138,821

Gross value of consideration

Confidential

625,704,525

Asset value

150,000,000

0

Total land area approved for sale to overseas persons

The tables below show the net area of land (in hectares) for which consent was granted to overseas persons for the 2018 calendar year to date and for the same time period in the preceding year. 

Freehold land approved for sale

 

January - February

 2018

January - February

2017

Number of approvals

2

4

Net land area (ha)[1]

29

32

In terms of “net” freehold land areas, the largest approval by the Overseas Investment Office in 2018 to date that can be disclosed was for:

  • Colin Rath’s proposed acquisition of a “net” land area of 28.74 hectares of freehold land situated at 244-246 Georges Road, Waipara Canterbury.

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

 

January - February

 2018

January - February

2017

Number of approvals

0

3

Net land area (ha)[2]

0

10,771

Summary of Approved Investments by Country

In terms of net freehold land area the table below shows the top country involved in approvals by the OIO for the 2018 calendar year to date.

Country

Net Freehold Land Area (ha)

United States

29

Applications declined

The table below shows investments for which consent was declined for the 2018 calendar year to date and for the same time period in the preceding year.

 

January - February

2018

January - February

2017

Number of declines

0

0

Total proposed purchase price ($)

0

0

Total proposed area to be acquired (ha)

0

0

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

Terms and Definitions

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 November 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).

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).


[1] The Gross land area was 69 ha in 2018 and 32 ha in 2017

[2] The Gross land area was 0 ha in 2018 and 10,773 ha in 2017