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

Decision summaries for May 2020

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.

202000209

 

Statistical information on Overseas Investment Office decisions for 2020 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 2020 calendar year to date and for the same time period in the preceding year. 

 

January - May

 2020

January - May

2019

Number of approvals

42

43

Net investment $

484,331,854

3,653,049,554

Gross value of consideration $

2,025,050,868

9,017,229,283

Asset value

835,843,000

1,698,310,631

In terms of net investment, the three largest approvals by the Overseas Investment Office in 2020 to date, that can be disclosed were for:

  • Adams NZ Bidco Limited’s proposed acquisition of 100% of the shares of Abano Healthcare Group Limited – a “net” investment of $140,670,423; and
  • Oyster Property Holdings Limited on behalf of Tauranga Crossing Shopping Centre LP’s proposed acquisition of the Tauranga Crossing Retail Centre and Lifestyle Centre (circa 20ha plus buildings), located at 31 Taurikura Drive, Tauranga – a “net” investment of $94,500,000; and
  • Synlait Milk Limited‘s proposed acquisition of 100% of the shares of Dairyworks Limited – a “net” investment of $72,430,371.

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 2020 calendar year to date and for the same time period in the preceding year. 

Freehold land approved for sale

 

January - May

 2020

January - May

2019

Number of approvals

25

25

Net land area (ha)[1]

3,504

5,730

In terms of “net” freehold land areas, the three largest approvals by the Overseas Investment Office in 2020 to date that can be disclosed were for:

  • Wolfgang Leitner’s proposed acquisition of a “net” land area of 799.7062 hectares of freehold land situated at Ponui Station, 217 Ponui Road, Kotemaori, Wairoa; and
  • Summit Forests New Zealand Limited’s proposed acquisition of a “net” land area of 729.6718 hectares of freehold land situated in Northland; and
  • Drylandcarbon One Limited Partnership’s proposed acquisition of a “net” land area of 531.7462 hectares of freehold land situated at 42 Wiffens Road, Kekerengu, Kaikoura. 

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

 

January - May

 2020

January - May

2019

Number of approvals

11

8

Net land area (ha)[2]

7,555

256

In terms of “net” other interest land areas, the three largest approvals by the Overseas Investment Office in 2020 to date that can be disclosed was for:

  • Zentral Estate Limited’s proposed acquisition of forestry rights over a “net” land area of 7,292.7 hectares situated at State Highway 5, Off Road Highway and Broadlands Road, Taupo District; and
  • Te Arai Links’ proposed acquisition of a “net” land area of 143.8 hectares of leasehold land situated at Te Arai South; and
  • T&G Global Limited’s proposed acquisition of a “net” land area of 65.4676 hectares of leasehold land situated at 65 Waiohiki Road, Waiohiki, Hawkes Bay.

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 2020 calendar year to date that can be disclosed.

Country

Net Investment $

Japan

450,921,021

Canada

95,028,875

China

89,885,301

United Kingdom

82,885,301

United States

69,405,580

In terms of net freehold land area the table below shows the top 5 countries involved in approvals by the OIO for the 2020 calendar year to date that can be disclosed.

Country

Net Freehold Land Area (ha)

Austria

1,278

Japan

965

Australia

540

United States

503

United Kingdom

215

Applications declined

The table below shows investments for which consent was declined for the 2020 calendar year to date and for the same time period in the preceding year.

 

January - May

2020

January - May

2019

Number of declines

9

2

Total proposed area to be acquired (ha)

215

178

 

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. 

Residential Land Standing Consent Notifications

The table below shows the gross dollar investment value to New Zealand and gross area of land of notifications under Residential Land Standing Consents which complied with the conditions of the standing consents, for the 2020 calendar year to date.

 

January - May

2020

Number of notifications

1

Gross land area (ha)

2

Gross value of consideration $

Confidential

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 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).

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 an entity where 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 6,143 ha in 2020 and 50,364 ha in 2019

[2] The Gross land area was 33,254 ha in 2020 and 4,728 ha in 2019

[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.