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Landcorp Property privatised to CDL (Singapore) subsidiary Starring this month is the purchase by the biggest hotel owner in New Zealand of “one of the largest property management and consulting companies in New Zealand” from the government. Kupe Group Ltd, once a 1980’s investment company, now 56% owned by CDL Hotels New Zealand Ltd, is buying Landcorp Property Ltd and Landcorp Property Holdings Ltd for $15,100,000 from state-owned enterprise Landcorp Corporation Ltd. Landcorp Property Holdings owns 47 separate land development projects, which comprise approximately 1,450 hectares of freehold land, for “residential/lifestyle subdivisions”. Of the 47 projects, 24 are in the South Island. Landcorp was formed as a SOE to manage property belonging to government departments. As with almost all the SOEs, such restructurings, supposedly for increased efficiency, have been simply a precursor to privatisation after the risks and expensive bailouts have been paid for out of government revenue. CDL Hotels New Zealand Ltd is 69% owned by CDL Holdings Ltd, in turn 52.8% owned by City Developments Ltd of Singapore, 37.8% by offshore institutional investors and 9.4% by Hong Leong Parties of Singapore. Kupe is changing its name to CDL Investments New Zealand. Landcorp Property Ltd has 18 offices around Aotearoa providing valuation and real estate services. Landcorp Property Holdings Ltd owns the actual property, worth $33.07 million on one independent valuation. Its book value was $20.58 million at 30/6/94. The sale lead to criticism by Winston Peters that the government was selling public land to foreign interests by deception. (Ref: Press, “Kupe returns with Land Corp move”, 12/10/94, p.29; “Kupe Group predicts $3.75m for 1995 earnings”, 9/11/94, p.36; “Kupe to change name, direction”, 23/11/94, p.34; “Govt ‘selling public land by deception’”, 14/12/94, p.50.) Monorail proposed between Wakatipu and Milford by Singapore consortium The proposal for a monorail between Lake Wakatipu and Milford surfaces this month, with the $500,000 establishment of Riverstone Holdings Ltd, owned 60% by Messrs Lee and Tan of Singapore and 40% by Philip Phillips of Aotearoa. According to the Commission:
No mention here of possible environmental or conservation concerns (an environmental impact assessment is said to be under way, but the impact is said to be “minimal” and the monorail would not go into Fiordland National Park), nor of the existing overcrowding problems at Milford. The 75km monorail would cost $120 million according to Phillips. It would be routed through the Von and Mararoa river valleys and initially be capable of 600 passengers each way a day. They have called the journey the “Milford Chain”, but in news releases claim it will take “just under three hours” compared to the four they told the Commission. The Lake Wakatipu terminus would be on the Mount Nicholas Station. (Press, “Milford rail plan unveiled”, 9/12/94, p.3.) Taylors (54% Spotless of Australia) taking over of Health Support Services Taylors Group Ltd, once a family owned drycleaning business but now 54.4% owned by Spotless Catering Services (NZ) Ltd of Australia has approval to issue up to a further 20 million 50 cent shares to Spotless for $10,125,000 as part of an underwriting agreement in order to fund the acquisition of the assets of Health Support Services Ltd, a company looking at making money out of CHE laundry operations. Spotless had already been given approval in January 1994 to buy 100% of Taylors, but this fell through because the price offered was inadequate (see commentary on January decisions). The current issue is being underwritten by Spotless and would lead to Spotless having a 92.3% ownership of Taylors if it had to take up the entire issue. Even this proposal met shareholder suspicion: at the Taylor’s AGM a shareholder criticised directors for not providing shareholders with adequate information about what was being bought. Health Support Services apparently services Auckland’s three public hospitals. Providing laundry services to private hospitals “was seen as a major opportunity”, and “there was potential to buy similar hospital laundry operations in areas outside Auckland as the trend continued for Crown Health Enterprises to tender out non-medical services.” (Press, “Taylors purchase approved”, 29/11/94, p.27.) Harrah of U.S.A., Auckland Casino operator, starts up The operator for the Auckland Casino, Harrah Club, and Harrah’s New Zealand Inc, both subsidiaries of The Promus Companies Incorporated, a U.S.A. public listed company, have approval to carry on business. The consideration (it is not clear what it is for) is $75 million. “Harrah’s New Zealand was the successful applicant for the casino operator’s licence and is to be the manager of the casino while Harrah’s Club is involved in the casino development… Promus has considerable experience in the casino gaming industry and accounts for almost 10% of the total U.S. gaming revenues.” Hotel Royal of Singapore buys Grand Complex in Wellington Released on appeal only in March 1995, was a decision giving approval to Royal Properties Investment Pte Ltd, subsidiary of Hotel Royal Ltd of Singapore to buy the Grand Complex in Wellington from the Bank of New Zealand Officers Provident Association for $49,000,000. Royal “is an experienced real estate investor (and) is purchasing the property for investment purposes.” It is probably connected with the same Kumar brothers (the “Royal brothers group”: see October 1993 decisions) who own two-thirds of the Novatel (formerly ParkRoyal) Hotel, corner Queen Elizabeth Square and Customs Street East, Auckland and 60% of the Holiday Inn Hotel, Queenstown. Macquaries Bank (Australia), Prudential (U.K.) buy Farmers Centre, Auckland Macquarie New Zealand Ltd, subsidiary of Macquarie Bank Ltd of Australia, and Prudential Trustees Ltd, owned by Prudential Assurance Co Ltd of the U.K., are buying the former Farmers Centre, corner Hobson, Wyndham and Nelson Streets, Auckland from Farmers Trading Company Ltd and FTC Properties Ltd for a suppressed price. They intend to redevelop the building as a retail complex with offices on the upper levels. Virgin Islands registered Japanese company to buy government stock A Japanese company registered in the British Virgin Islands (tax haven) is being set up with a $20 million establishment cost to invest in “New Zealand government stock and other similar types of investment”. It is owned by “Messrs Sun, Sun, Numabe, Ota, Otomo and Otomo of Japan”. Ernslaw One (Tiong family, Malaysia) buys 149 ha. Gore farm to dump bark Ernslaw One Ltd, owned by the Tiong family of Malaysia is buying a 149 hectare farm at Conical Hill near Gore for $445,000 in order to dump bark into its gullies. Ernslaw, through its subsidiary Blue Mountain Lumber Ltd owns a timber mill at Conical Hill (formerly owned by the Government) which
The farm is being sold because of Mr Cronin’s ill-health. Ernslaw buys four farms totalling nearly 3,000 ha. near Dannevirke Ernslaw is also buying four farms totaling nearly 3,000 hectares, near Dannevirke: a 1,189 hectare one for $870,000, 467 hectares for $600,000, 784 hectares for $1,100,000, and 504 hectares for $600,000. In each case the “rationale” is the same: the Commission says it is advised that
Neil Construction (Malaysia) buys 20 ha. at Albany for subdivision Another Tiong family company, Neil Construction Ltd has approval to buy 20 hectares of land at Albany, Auckland for $3,610,000 from the Crown for residential subdivision. See also March, June, August and September 1994. Prudential (U.K.) reclaims control of Morton Estate Prudential Assurance Company New Zealand Ltd “and/or” Prudential Assurance Company Ltd, of the U.K. are reclaiming control of Morton Estate Ltd from Appellation Vineyards Ltd for up to $7,033,000 by way of cancellation of existing convertible debt. The story was that “in June 1993, Appellation acquired Morton Estate Ltd (Appellation’s only subsidiary) from Prudential and others” with the payment deferred until a proposed public float of Appellation had occurred. The float never did occur and Morton Estate is now being returned to the former owners. “Prudential and others” were a specially formed company, M. E. Holdings Ltd which bought two vineyards from Mildara Wines Ltd of Australia in order to sell them to Appellation followed by the public float sub-underwritten by M. E. Holdings’ shareholders. The named shareholders in M. E. Holdings were: National Mutual Life Assurance Association of Australasia Ltd (Australia, 18.95 per cent), Prudential Assurance Company NZ Ltd (U.K., 39.47 per cent), Westpac Superannuation Nominees NZ Ltd (Australia, 21.05 per cent), and ANZ Nominees Ltd (Australia, 9.47 per cent) as nominees for Cigna International Investment Advisors Australia Ltd. The vineyards were Spring Creek Vineyards Ltd, including 41.25 hectares of land at Cloudy Bay, Marlborough, for approximately $1,000,000, and Morton Estate Winery Ltd, including a 53 hectare vineyard at Maungatahi and another 11 hectare vineyard at Katikati, Bay of Plenty, for approximately $8,500,000. Morton Estate buying 16 ha. vineyard at Clive, Hawkes Bay Meanwhile, Morton Estate Ltd is buying a 16 hectare vineyard at Clive, Hawkes Bay for $900,000 “to enable the vendor to purchase a dry stock unit”. “The Commission is advised that Morton Estate has a winery capacity of 1,100 tonnes which is currently not fully utilised and that the acquisition of the vineyard will guarantee an immediate grape supply for the winery.” Chinese-owned NZ National Trust to attract Asian investment to primary sector A deceptively titled organisation called the New Zealand National Trust, owned in China, has been set up to “focus its investment strategy on the New Zealand primary sector, together with value added industries based on that sector…. the purpose of the Trust is to attract foreign investment capital from Asia and in particular Southern China to New Zealand.” It is valued at “approximately $30 million“.
Hong Kong Bank option on Momona Airport property from Dalhoff and King A further decision released on appeal only in March 1995, related to the liquidation of the Dalhoff and King group. Midland International Trade Services (UK) Ltd, a member of the HSBC Holdings PLC group (parent of the Hong Kong and Shanghai Bank) in the U.K. was given approval to acquire “an option (and the right to exercise that option) to purchase the leasehold property comprising land of 1400sq. m. and aircraft hangar at Dunedin’s Momona airport from the Dalhoff and King group of companies, in liquidation. The value was “apportioned” to be $177,000. The option was never exercised however: “subsequent to approval the Commission was advised that the option was not exercised and the liquidators sold the lease to a third party.” The deal was part of the liquidation, in which Midland was a trustee for the “subrogated creditors”. “The granting of the option to purchase the leasehold property is one of a number of the terms of settlement between the liquidators of the Dalhoff and King Group and the Subrogated Creditors … the settlement enables the liquidators to complete a very long liquidation process and pay out in full all those creditors whose debts have been accepted by the liquidators.” BNZ (National Australia Bank subsidiary) buys Braccleigh from NAB for $2,000 In internal restructuring, BNZ investments Ltd (subsidiary of the National Australia Bank Ltd, Australia) is acquiring Braccleigh Holdings Ltd from NAB for $2,000, though Braccleigh’s assets exceed $10 million. Elliot Family moves asset to Guernsey subsidiary Volt Investments Ltd, a Guernsey company wholly owned by the P Elliot Family Trust of Hong Kong is buying Knocklynn Holdings Ltd from P. Elliot for “$0-10”.
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