Overseas investment decision for case 201420047 - Reco Otago Private Limited

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 100% of the shares of St Lukes Group (No. 2) Limited which owns or controls freehold and leasehold interests in approximately 4.6967 hectares of land at Newmarket.

An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in up to 100% of the shares of Albany Shopping Centre Limited, Albany Shopping Centre (No.2) Limited, St Lukes Group (No.2) Limited, Manukau City Centre Limited, St Lukes Square (1993) Limited and Riccarton Shopping Centre (1997) Limited, the consideration of which exceeds $100m.

The Applicant is part of the GIC Group, an organisation that invests the foreign reserves of, and is ultimately owned by, the Government of Singapore.  The Applicant intends to acquire an initial 49% of the shares in the various registered proprietors of the Westfield shopping centres at Albany, Manukau City, Newmarket, St Lukes and Riccarton.  The Applicant may increase its shareholding to 100% under the terms of the consent. 

The Applicant regards the acquisition as offering strong prospects for long-term, sustainable growth consistent with the GIC Group’s underlying investment philosophy.  The proposed transaction will increase its exposure to the New Zealand economy, thereby further diversifying its existing worldwide portfolio.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 of the Overseas Investment Act 2005. The 'benefit to New Zealand' criterion was satisfied by particular reference to the following factors:

Overseas Investment Regulations 2005
28(b) – Key person in a key industry
28(c) – Affect image 
28(f) – Advance significant Government policy or strategy