Overseas investment decision for case 200710029 - Kakariki Equities Limited and Foxton Equities Limited

42.5387 hectares of freehold comprising:

1. 7.2755 hectares situated at Lady's Mile and Duncan Street, Foxton being CTs WN114/94, WN13C/790, WN154/181, WN166/152, WN166/255, WN195/3, WN19C/345, WN254/247, WN273/166, WN336/300, WN436/262, WN442/120, WN479/28, WN529/230, WN7A/689, WN870/17, WN99/62 and WN341/3 (Wellington Registry); and
2. 35.2632 hectares situated at Kakariki Road, Marton being CTs WN12C/69, WN241/46, WN533/91 (Wellington Registry).

To acquire:

1. an interest in land which, either alone or together with any associated land of that type, is or includes non-urban land and exceeds 5 hectares in area; and
2. an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land over 0.4 hectares that includes a historic place, historic area, wahi tapu, or wahi tapu area that is registered or for which there is an application or proposal for registration under the Historic Places Act 1993; and
3. an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area by the regulator under section 37.

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Godfrey Hirst NZ Limited (GHNZ) has entered into an agreement to acquire the business operations and certain assets of Feltex Carpets Limited (Feltex) from receivers appointed by ANZ National Bank Limited (ANZ). GHNZ is a vertically integrated carpet manufacturing and wool processing company with operations in both the North and South Islands of New Zealand. The Godfrey Hirst group primarily produces woollen carpets for the residential and commercial sectors of the flooring market in New Zealand and for export.

The Applicants propose to acquire the properties owned by Feltex at Kakariki Road, Marton and Lady's Mile and Duncan Street, Foxton. The Applicants' intention is to close the Kakariki Road site. Kakariki Equities Limited (one of the Applicants) is in the process of finalising an agreement to sell the Kakariki Road site to Kakariki Industrial Park Limited (a consortium involving Turks Poultry Farm, Whaitiri Potato Company Limited and a local farmer).

The proposal is likely to result in the following benefits:

1. the retention of existing job in New Zealand that would or might otherwise be lost; and
2. increased efficiencies derived from economies of scale reducing the operational costs of the combined GHNZ and Feltex business; and
3. the introduction into New Zealand of additional investment for development purposes.