Overseas investment decision for case 201410015 - Beijing Capital Group Company Limited

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100% of the shares of Transpacific Industries Group Finance (NZ) Limited (“TIGFNZ”) which owns or controls:

a) An overseas investment in sensitive land, being the applicant's acquisition of rights or interests in 100% of the shares of TIGFNZ which owns or controls: 

• a freehold interest in approximately 79.2035 hectares of land at 125 & 127 Old Brighton Road, Dunedin;
• a leasehold interest in approximately 2.2840 hectares of land at Dairy Flat, Auckland;
• a freehold interest in approximately 182.7373 hectares of land at Dairy Flat, Auckland;
• a freehold interest in approximately 1.1877 hectares of land at 57-59 Port Road, Lower Hutt;
• a freehold interest in approximately 1.3207 hectares of land at 25 Inlet Road, Papakura;
• a leasehold interest in approximately 1.5390 hectares of land at 8 Daphne St, Te Awamutu;
• a freehold interest in approximately 0.6405 hectares of land at 27 Seaview Road, Wellington;
• a leasehold interest in approximately 1.5357 hectares of land at Edgar Street, Hamilton;
• a freehold interest in approximately 123.2446 hectares of land at Bruce Road, Turakina;
• a freehold interest in approximately 1461.0646 hectares of land at Mt Cass Road, Waipara, North Canterbury;
• a put option interest in approximately 55.9429 hectares of land at Horseshoe Bush Rd, Auckland;
• a leasehold interest in approximately 12 hectares of land at 600 Island Road, Puketutu Island, Mangere, Auckland;
• a leasehold interest in approximately 0.1046 hectares of land at 53 Port Road, Lower Hutt;
• a leasehold interest in approximately 0.6076 hectares of land at 108 & 110 Ostend Road, Waiheke Island, Auckland; and
• a leasehold interest in approximately 7.1067 hectaresof land at 40 Metro Place, Bromley, Christchurch; and

b) An overseas investment in significant business assets, being the applicant's acquisition of rights or interests in 100% of the shares of TIGFNZ, the consideration of which exceeds $100m.

The Applicant is a Chinese state-owned enterprise that provides waste management solutions and environmental infrastructure services inChina. The Vendors own 100% of the shares in TIGFNZ, which in turn is the parent company of Transpacific Industries Group (NZ) Limited, a recycling, waste management and industrial service company.

The Vendor is selling its New Zealand operations in order to focus on growth opportunities in Australia. The Applicant considers that its investment in TIGFNZ will bring significant benefits by way of new technology and additional capital investment.

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

Overseas Investment Act 2005
17(2)(a)(i) – Jobs
17(2)(a)(ii) – New technology or business skills
17(2)(a)(v) – Additional investment for development purposes

Overseas Investment Regulations 2005
28(f) – Advance significant Government policy or strategy