Applicant
AMP Capital Property Portfolio Limited
Case number(s)
200810041
Decision date
Type
Decision
Decision number200810041
Application number200720147
Date9 May 2008
Offeror/applicantAMP Capital Property Portfolio Limited
Ultimate applicant beneficial ownership65.04 percent - New Zealand, New Zealand Public
34.96 percent - Australia, Australian Public
Beneficial overseas ownership 
- Asset current100 percent
- Asset proposed34.96 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)ADP (NZ) Trust
100 percent - Australia, Australian Public
Business activitiesProperty & Business Services - Business
Details of land involved7.3501 hectares of freehold situated at Great North Road, Auckland being various Certificates of Title (North Auckland Registry).
17.6074 hectares of freehold situated at corner of Te Irirangi Drive and Ti Rakau Drive, Pakuranga Auckland being Certificate of Title 67447 (North Auckland registry).
8.5512 hectares of stratum estate in freehold situated at corner of Lambie Drive and Cavendish Drive, Manukau, Auckland being various Certificates of Title (North Auckland registry).
Regions involvedAuckland
Various
Total consideration$414,000,000
Consent soughtTo acquire 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.
Rationale

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.

Background to the Investment:
AMP Capital Property Portfolio Limited (Applicant) owns an undivided half- share in each of Botany Town Centre, Manukau Supa Centre, and Lynnmall Shopping Centre (Shopping Centres). The owner of the other undivided half-share is Trust Company Limited in its capacity as custodian for Stockland Management Limited in its capacity as trustee of ADP (NZ) Trust.

Outline of the Investment:
The Applicant seeks consent to acquire the remaining half-share in the Shopping Centres. It has entered into sale and purchase agreements for Shopping Centres, which is conditional on the Overseas Investment Office's consent.

Rationale for the Investment:
The Applicant wants to acquire complete control over the Shopping Centres for the following reasons:

  1. Currently the management of each of the Shopping Centres is governed by a co-ownership deed. Decisions need to be made in accordance with the provisions of the deeds and the Applicant seeks 100% ownership to enable it to make decisions in respect of each shopping centre without requiring the consent of the coowner;
  2. The Applicant considers the Shopping Centres to be strong long- term growth assets with arguably a lower risk profile than the balance of the AMP NZ Property Portfolio's (AMP Fund) portfolio;
  3. The acquisition will assist the AMP Fund achieve its sector allocations closer to its long term benchmarks; and
  4. If consent is granted the AMP Fund will have in excess of $2.2 billion in assets making it more attractive to new investors.

The proposed investment is likely to result in the following benefits:

Overseas Investment Act 2005:
s17(2)(a)(i) - Creation of new job opportunities.
s17(2)(a)(iv) - Added market competition and enhanced domestic services.
s17(2)(a)(v) - Additional investment for development purposes.

Overseas Investment Regulations 2005:
r28(c)(i) - Adversely affect New Zealand's image overseas.
r28(e) - Previous investments of benefit to New Zealand.

ContactAlistair Law
Chapman Tripp
P O Box 993
WELLINGTON