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.

201810188

201810200

Statistical information on Overseas Investment Office decisions for 2019 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 2019 calendar year to date and for the same time period in the preceding year. 

 January - March 2019January - March 2018
Number of approvals1513
Net investment $1,765,990,142543,956,853
Gross value of consideration4,019,795,138855,053,200
Asset value967,308,762250,000,000

In terms of net investment, the three largest approvals by the Overseas Investment Office in 2019 to date, that can be disclosed were for:

  • Titan AcquisitionCo New Zealand Limited’s proposed acquisition of up to 100% of the shares of Trade Me Group Limited – a “net” investment of $1,050,591,409; and
  • Global Valar, S.L.’s proposed acquisition of up to 100% of the shares of Restaurant Brands New Zealand Limited – a “net” investment of $575,906,300; and
  • GWA Group Limited’s proposed acquisition of 100% of the shares of Methven Limited – a “net” investment of $115,056,464.

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 2019 calendar year to date and for the same time period in the preceding year.

Freehold land approved for sale

 January - March 2019January - March 2018
Number of approvals66
Net land area (ha)[1]7281,697

In terms of “net” freehold land areas, the three largest approvals by the Overseas Investment Office in 2019 to date that can be disclosed were for:

  • Craigmore Permanent Crop Limited Partnerships’ proposed acquisition of a “net” land area of 467.9563 hectares of freehold land situated at 701 Wakarara Road, Hawkes Bay; and
  • Pan Pac Forest Products Limited’s proposed acquisition of a “net” land area of 260.466 hectares of freehold land situated at Kakariki Farm Road, Kotemaori.

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

 January - March 2019January - March 2018
Number of approvals32
Net land area (ha)[2]93

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

  • T&G Global Limited’s proposed acquisition of a “net” land area of 29.2903 hectares of freehold land situated at 42 Palomino Road, Haumoana, Hawkes Bay.
  • Marine Power New Zealand Limited’s proposed acquisition of a “net” land area of 0.5237 hectares of leasehold land situated at 42 Sir Woolf Fisher Drive, East Tamaki, Auckland.

Summary of Approved Investments by Country[3]

In terms of net investment, the table below shows the top 5 countries involved in approvals by the OIO for the 2019 calendar year to date that can be disclosed.

CountryNet Investment $
Singapore678,306,954
United States594,831,668
Mexico365,814,375
Canada229,892,435
United Kingdom198,594,434

In terms of net freehold land area the table below shows the top 5 countries involved in approvals by the OIO for the 2019 calendar year to date that can be disclosed.

CountryNet Freehold Land Area (ha)
Australia405
Japan364
Hong Kong192
Germany156
Luxembourg139

Applications declined

The table below shows investments for which consent was declined for the 2019 calendar year to date and for the same time period in the preceding year.

 January - March 2019January - March 2018
Number of declines00
Total proposed area to be acquired (ha)00

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 rigor 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 March 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.  The figure includes:

  • land that is proposed to be acquired under the consent by overseas person from an existing overseas person.  For example, if a entity being an overseas person acquires 10 hectares from existing overseas person the full 10 hectares is shown; and
  • land that is proposed to be acquired under the consent by New Zealand interests as well as overseas interests (for example, under a New Zealand/Australian joint venture).  For example, if a company (being an overseas person) that is 50% New Zealand owned and 50% overseas owned acquires 10 hectares, the full 10 hectares is shown; and
  • land that is owned by a entity where an overseas persons acquires an interest in the entity.  For example if an overseas persons acquires 10% of the shares in a company and that company owns 10 hectares of land, the full 10 hectares is shown.

 

[1] The Gross land area was 4,463 ha in 2019 and 1,741 ha in 2018.

[2] The Gross land area was 14 ha in 2019 and 3 ha in 2018.

[3] The country “Net Investment $” and “Net Freehold Land Area” figures represent the total dollar value invested in New Zealand and the net land area being acquired by that country during the reporting period.  For example a Japanese entity acquiring 1,000 ha for $1 million from an Australian company would result in $1 million and 1,000 ha being added to Japan’s “Net Investment $” and “Net Freehold Land Area” totals and $1 million and 1,000 ha being deducted from Australia’s totals.