DecisionConsent granted
Section 12(b) Overseas Investment Act 2005
Section 13(1)(a) Overseas Investment Act 2005
Decision MakerThe Minister for Land Information and the Associate Minister of Finance
Decision Date9 August 2019
InvestmentAn overseas investment in sensitive land and significant business assets, being the acquisition, by an indirectly and wholly owner subsidiary of the Applicant, of around 35% of shares in Millennium & Copthorne Hotels Plc (the value of which is over NZ$100 million) which, via its interests in Millennium & Copthorne Hotels New Zealand Limited and CDL Investments New Zealand Limited, has:
  • freehold interests in approximately 280 hectares of land for residential development throughout New Zealand held by a subsidiary of CDL Investments New Zealand Limited;
  • freehold and leasehold interests in a number of hotels under the Copthorne Hotels, Millennium Hotels, and Kingsgate Hotels brands.
Asset valueThe New Zealand assets of Millennium & Copthorne Hotels Plc are valued at approximately $360.9 million.
ApplicantCity Developments Limited
Hong Leong Group, Singapore (48.6%)
Singapore shareholders (14.3%)
North American shareholders (12.3%)
Various overseas persons (12.0%)
Asian (excluding Singapore) shareholders (5.5%)
United Kingdom shareholders (3.9%)
European (excluding UK) shareholders (3.4%)
VendorMinority shareholders of Millennium & Copthorne Hotels Plc
United Kingdom (100%)
Background

City Developments Limited, a Singapore listed company, intends to increase its existing ownership interest (65.2%) in Millennium & Copthorne Hotels Plc (M&C UK), a UK listed company, to up to 100%. M&C UK holds interests in Millennium & Copthorne Hotels New Zealand Limited (M&C NZ) and CDL Investments New Zealand Limited (CDL NZ). M&C NZ and CDL NZ hold interests in sensitive land and collectively have assets valued at over NZ $100 million.

City Developments Limited seeks to acquire the remaining 34.8% of M&C UK in order to delist the company, to free it from the pressures and short-term expectations it faces as a listed company.

The New Zealand component of the transaction forms less than 10% of the total asset value and does not form a major motivation to complete the transaction. City Developments Limited does not have any current plans to cease or substantially alter the existing operations of the New Zealand subsidiaries M&C NZ and CDL NZ.

City Developments Limited, through the operations of M&C NZ and CDL NZ, has a track record of investment in New Zealand. Its New Zealand investments have introduced over NZ $120 million worth of investment capital into New Zealand and employed approximately 1,200 employees.

The Applicant has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character. The Applicant has also demonstrated financial commitment to the investment.

More informationTim Tubman
Chapman Tripp
PO Box 2206
AUCKLAND 1140