Overseas investment decision for case 202000020 - AMP Capital Funds Management Limited

An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in an additional 30% of SecureFuture Wiri Holdings Limited (resulting in it holding a 70% interest in that company), the value of the assets of SecureFuture Wiri Holdings Limited and its 25% or more subsidiaries being greater than $100m; and

An overseas investment in sensitive land, being the Applicant's acquisition of an additional 30% share in SecureFuture Wiri Holdings Limited (resulting in it holding a 70% interest in that company), which has a leasehold interest in 20.1529 hectares of land at Wiri, South Auckland.

The Applicant intends to acquire an additional 30% stake (resulting in it holding a 70% interest) in the company operating the Kohuora Auckland South Corrections Facility (the Prison).

The Vendor helped construct the Prison and now wishes to reinvest its funds elsewhere. The Applicant is a secondary investor, who entered into the Public Private Partnership at the management and oversight phase of the project and is now expanding its interest.

The Prison is operated as a Public Private Partnership (PPP) with the Department of Corrections. The Applicant’s effective control over the Prison is strictly limited by pre-existing contracts so this is, effectively, a passive investment with the Prison’s operations being run by the existing subcontractors.

Allowing the Applicant to increase its holdings as a secondary investor is likely to promote the Government’s PPP strategy including secondary sell-down transactions. It is also likely to be in New Zealand’s economic interest to have the PPP model working in a way that encourages additional investment.

The Applicant has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character. The Applicant has also demonstrated financial commitment to the investment.