Overseas investment decision for case 200820004 - Core 3B Holdings (New Zealand) Limited | Toitū Te Whenua

Applicant: Core 3B Holdings (New Zealand) Limited
Case number(s): 200820004
Decision date: 8 Jul 2008
Type: Decision

Decision number	200820004
Application number	200810034
Date	8 July 2008
Offeror/applicant	Core 3B Holdings (New Zealand) Limited
Ultimate applicant beneficial ownership	100 percent - Australia, Australian Public
Beneficial overseas ownership
- Asset current	N/A
- Asset proposed	N/A
- Share current	68.2247 percent
- Share proposed	100 percent
Offeree(s)/seller(s)	Premier Hotels Christchurch Limited 31.25 percent - United Kingdom, InterContinental Hotels Group PLC 29.94 percent - New Zealand, Skyline Enterprises Limited 9.1455 percent - United Kingdom, Aspinall family 9.1023 percent - United Kingdom, John Aspinall Foundation 7.2632 percent - United Kingdom, United Kingdom Public 6.1637 percent - Australia, Packer (Kerry) 4.6219 percent - United Kingdom, The Osborne Family Trust 1.8332 percent - New Zealand, Southern Equities Limited 0.6781 percent - Australia, Packer (James)
Business activities	Accommodation - Hotel/Motel/Lodge
Details of land involved	0.5732 hectares of leasehold situated at 70 Kilmore Street, Central Christchurch being CB30F/80 (Canterbury Registry).
Regions involved	Canterbury
Total consideration	$61,500,000
Consent sought	To acquire up to 100 percent of the shares in Victoria Hotels (Christchurch) Limited.
Rationale	The application has been approved as it met the criteria. The Overseas Investment Office is satisfied that the Applicant has business experience and acumen relevant to and is demonstrating financial commitment towards the investment. The Overseas Investment Office is further satisfied that the persons who exercise control over the Applicant are of good character and not the kind of persons referred to in section 7(1) of the Immigration Act 1987. Background to the Investment: Eureka wishes to purchase the Crowne Plaza Hotel in Christchurch to add to the portfolio of hotels that it controls on behalf of its investors. Outline of the Investment: The Applicant is purchasing all the shares in the New Zealand company that holds a 99-year lease over the land on which the Crowne Plaza is built. Rationale for the Investment: Purchasing the land will allow the Applicant to: invest in refurbishing the Crowne Plaza Hotel; and extract a return on investors' capital from the operation of the hotel. The proposed overseas investment will, or is likely to, benefit New Zealand (or any part of it or group of New Zealanders) having regard to the following benefits: Overseas Investment Act 2005: s17(2)(a)(i) - the creation of new job opportunities as a result of refurbishing the hotel; s17(2)(a)(iv) - enhanced domestic services in the form of improved facilities at the hotel; and s17(2)(a)(v) - additional investment introduced to New Zealand to refurbish the hotel. Overseas Investment Regulations 2005 (iv) r28(e) - previous investment in the Intercontinental Hotel and Grand Plimmer Complex, both in Wellington.
Contact	James Martin Kensington Swan P O Box 10246 WELLINGTON 6143

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