Overseas investment decision for case 201020057 - Westfield Retail Trust

An overseas investment in sensitive land, being the Applicant's acquisition (directly or indirectly) of rights or interests in 50.0% of the shares of Westfield NZ Holdings Limited (NZ-JVCo) which owns or controls:

• a freehold interest in 5.0292 hectares of land at Westfield Westcity Shopping Centre, 7 Catherine Street, Henderson, Auckland; and
• a freehold interest in 3.8397 hectares of land at Westfield 277 Shopping Centre, 277 Broadway and Mortimer Pass, Newmarket, Auckland.

An overseas investment in significant business assets, being the Applicant's acquisition (directly or indirectly) of rights or interests in 50.0% of the shares of NZ-JVCo and the assignment of a loan from Westfield Trust/Westfield Management Limited, the asset value for which exceeds $100m.

Westfield Group owns shopping centres throughout Australia and New Zealand.

Westfield Group is proposing a restructure under which 50% of its interests in its Australian and New Zealand shopping centres will be demerged through a public float of a separate listed property trust on the ASX. Westfield Retail Trust will acquire a 50% interest in the Australian and New Zealand shopping centres. Westfield Group will retain ownership of the other 50% of interest in the Australian and New Zealand shopping centres.

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 Act 2005
17(2)(a)(iv) – Added market competition/productivity

Overseas Investment Regulations 2005
28(e) – Previous investments