DecisionConsent Granted
Section 12(a) and section 13(1)(a), Overseas Investment Act 2005
Decision MakerOverseas Investment Office
Decision Date27 April 2018
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of a leasehold interest in 5.2452 hectares of land at 11 Springs Road, East Tamaki, Auckland for consideration exceeding $100 million over the term of the leasehold interest.
Estimated Rent Over Lease Term$362,767,007
ApplicantWaste Management NZ Limited
Chinese Government, China, People's Republic of (50.5191%)
China Public (49.4809%)
VendorStride Property Limited (formerly DNZ Property Fund Limited)
New Zealand Public (70.22%)
Various overseas persons (29.78%)
Background

The Applicant is one of New Zealand’s leading recycling and waste service companies, servicing industrial, government, and commercial customers, and seeks consolidate its operations in Auckland to one location to enable it to develop its business.

Prior to the lease commencing and in order to secure the tenancy, Stride Property Limited will undertake a multi-million dollar investment in the demolition, design, and construction work to ready the land for the Applicant over two years.  

We consider that the Investment is likely to benefit New Zealand with particular regard to the individual factors set out below.  In sequence of the stages associated with the proposed Investment:

  • Stride Property Limited, being the owner of the land, will spend several million dollars on redeveloping the property for the Applicant’s tenancy.
  • The Applicant’s new facilities and operating site will allow it to achieve a greater level of efficiency and to enhance its delivery of domestic services.  The existing lease arrangements see the Applicant spread across several sites, which causes logistical and transit issues, and restricts the Applicant’s ability to continue to grow the business and operations.  
  • The new site will allow the Applicant to better co-ordinate and schedule its waste collection and processing services, allow it to maintain and convert its fleet of trucks from diesel to electric vehicles and bins, and to separate employee / customer traffic flow from fleet and business traffic flow.

The Applicant has also made previous investments in New Zealand over a number of years that have resulted in the injection of substantial amounts of new capital, job creation, and other benefits such as enhanced recycling capacity and electricity generation for the national grid.

More informationJohn Brown
Brown Partners Lawyers
P O Box 1496
Auckland 1140