FOREIGN – AUSTRALIA – REGULATION

China investor calls for clarity in FIRB rules

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Original article by Sue Neales
The Australian – Page: 21 : 9-Jun-16

Chinese-backed Rifa Australia has acquired 14 farms in Australia in the last two years, and it is seeking approval from the Foreign Investment Review Board to acquire an additional six properties. However, Rifa’s David Goodfellow says the company has been advised that the FIRB will not resume processing applications until late July 2016. He says investors are concerned that there will be further changes to regulations governing offshore investment in the agricultural sector if the Coalition wins the federal election.

CORPORATES
RIFA AUSTRALIA PTY LTD, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, S KIDMAN AND COMPANY PTY LTD, SHANGHAI PENGXIN GROUP COMPANY LIMITED, DAKANG AUSTRALIA HOLDINGS PTY LTD, ELDERS LIMITED – ASX ELD, MACQUARIE GROUP LIMITED – ASX MQG, PARAWAY PASTORAL COMPANY LIMITED, CBRE PTY LTD, NORTH AUSTRALIAN PASTORAL COMPANY

Kidman ‘deal’ off election agenda

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Original article by Sue Neales
The Australian – Page: 1 & 2 : 20-Apr-16

Shanghai Pengxin, Shanghai CRED Real Estate and Australian Rural Capital are poised to acquire the S. Kidman & Company rural property empire, comprising nine cattle stations and 180,000 head of cattle. However, federal Treasurer Scott Morrison will defer a decision on whether to approve the sale until late July 2016, to ensure that it does not become an election issue. The two Chinese groups will have an 80 per cent stake in the Kidman business.

CORPORATES
S KIDMAN AND COMPANY PTY LTD, SHANGHAI PENGXIN GROUP COMPANY LIMITED, SHANGHAI CRED REAL ESTATE STOCK COMPANY LIMITED, AUSTRALIAN RURAL CAPITAL LIMITED – ASX ARC, AUSTRALIA. DEPT OF THE TREASURY, DAKANG AUSTRALIA HOLDINGS PTY LTD, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Housing risks rise as foreign approvals soar

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Original article by Samantha Hutchinson
The Australian – Page: 23 : 12-Apr-16

Australia’s Foreign Investment Review Board processed 36,841 applications for offshore investments in the residential property sector during the last year. The FIRB approved a record $A61bn worth of foreign investments in the sector. A banking analyst has downplayed concerns that settlement risk will be heightened by any move by Chinese authorities to crack down on cash outflows, arguing that such measures have not been very effective to date.

CORPORATES
AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, UBS HOLDINGS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, LEND LEASE GROUP LIMITED – ASX LLC

ATO to test ‘national interest’

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Original article by Angus Grigg, Angela Macdonald-Smith
The Australian Financial Review – Page: 3 : 1-Apr-16

The Australian Taxation Office (ATO) has been given new powers to scrutinise foreign investments for their impact on Australia’s national interest. It seems that the ATO will focus on Chinese state-owned enterprises. The chairman of China’s State Grid Corporation, Liu Zhenya, said at a press conference in Beijing on 30 March 2016 that his company expected to be treated the same way as other bidders for the New South Wales electricity network, Ausgrid.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSGRID PTY LTD, TRANSGRID, STATE GRID CORPORATION OF CHINA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Nation’s wealthy line up for slice of Kidman

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Original article by Sue Neales
The Australian – Page: 1 & 2 : 17-Mar-16

A decision on whether the sale of the S Kidman & Company rural property business to foreign buyers can proceed is likely in early April 2016. Three overseas consortiums were shortlisted to buy the Kidman assets, but it has been revealed that a number of potential Australian buyers have since been permitted to undertake due diligence. There have been suggestions that the decision was politically motivated, due to concerns about the sale of large landholdings to foreign interests.

CORPORATES
S KIDMAN AND COMPANY PTY LTD, ERNST AND YOUNG, SHANGHAI PENGXIN GROUP COMPANY LIMITED, GENIUS LINK ASSET MANAGEMENT GROUP, AUSTRALIAN COUNTRY CHOICE PTY LTD, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. DEPT OF THE TREASURY, LINFOX PTY LTD, MOON LAKE INVESTMENTS PTY LTD, VAN DIEMEN’S LAND COMPANY, TASFOODS LIMITED – ASX TFL, KATHMANDU HOLDINGS LIMITED – ASX KMD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF AGRICULTURE AND WATER RESOURCES

Security ‘key to foreign investing’

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Original article by Brendan Nicholson
The Australian – Page: 2 : 18-Jan-16

Offshore investment in key Australian infrastructure is under scrutiny in the wake of the Northern Territory Government’s deal to lease the Port of Darwin to a Chinese company. The Australian Strategic Policy Institu­te’s submission to a Senate inquiry argues that the existing procedures for assessing proposed foreign investments are insufficient. It adds that while Australia must continue to welcome offshore investment, the question of national security must be given precedence.

CORPORATES
AUSTRALIAN STRATEGIC POLICY INSTITUTE LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. NATIONAL SECURITY COMMITTEE, PORT OF DARWIN, LANDBRIDGE GROUP COMPANY LIMITED, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, AUSTRALIA. DEPT OF DEFENCE, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

TransGrid bidders cleared

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Original article by Angela Macdonald-Smith, John Kehoe
The Australian Financial Review – Page: 1 & 4 : 23-Nov-15

Australia’s Foreign Investment Review Board has vetted the shortlisted bidders for New South Wales-based TransGrid and given clearance for them to proceed with the acquisition. The four consortiums were shortlisted by the State Government in September 2015, and the successful bidder is expected to be named soon. The Government is tipped to gain around $A9bn from the privatization of TransGrid, which operates the state’s electricity grid and a fibre optic cable network.

CORPORATES
TRANSGRID, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, NEW SOUTH WALES. THE TREASURY, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, STATE GRID CORPORATION OF CHINA, MACQUARIE INFRASTRUCTURE AND REAL ASSETS, QIC LIMITED, IFM INVESTORS PTY LTD, AUSTRALIANSUPER PTY LTD, CANADA PENSION PLAN INVESTMENT BOARD, BOREALIS INFRASTRUCTURE MANAGEMENT INCORPORATED, SPARK INFRASTRUCTURE GROUP – ASX SKI, HASTINGS FUNDS MANAGEMENT LIMITED, PORT OF DARWIN, S KIDMAN AND COMPANY PTY LTD, ARCHER DANIELS MIDLAND COMPANY, GRAINCORP LIMITED – ASX GNC

Chinese investors wary on house buying

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 8 : 25-Aug-15

Chinese real estate investors are reacting to Treasurer Joe Hockey’s crackdown on illegal purchases. They are becoming more cautious as they seek information about investment rules for residential property, according to Asian property agent House 18’s Michael Zhu. Many agents are advising Chinese investors to contact a lawyer before proceeding.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, THE REAL ESTATE INSTITUTE OF AUSTRALIA LIMITED, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, FINANCIAL INDUSTRY REGULATORY AUTHORITY INCORPORATED, CBRE GROUP INCORPORATED, BLACK DIAMONDZ PROPERTY CONCIERGE, HOUSE 18

FIRB clears China Communications acquisition of John Holland

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 20 : 9-Apr-15

Leighton Holdings’ sale of defence contractor John Holland to China Communications Construction Company has been cleared by the Foreign Investment Review Board. Federal Treasury Joe Hockey says the $A1bn deal does not raise any national interest concerns. John Holland is estimated to have undertaken some $A470m worth of construction contracts for the Department of Defence in 2014

CORPORATES
LEIGHTON HOLDINGS LIMITED – ASX LEI, JOHN HOLLAND PTY LTD, CHINA COMMUNICATIONS CONSTRUCTION GROUP LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF DEFENCE, THE STOCK EXCHANGE OF HONG KONG LIMITED, WORLD BANK, CHINA ROAD AND BRIDGE CORPORATION, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION

FIRB may scare off Asian buyers, warns Maddocks

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Original article by Rebecca Thistleton
The Australian Financial Review – Page: 41 : 31-Mar-15

Law firm Maddocks claims that the proposed restrictions on foreign investment in Australian residential property have had a negative impact on demand in the sector. The Foreign Investment Review Board recommended the introduction of new fees and stricter rules for foreign investors. Maddocks partner Nick Holuigue has warned that foreign investors could choose to invest elsewhere if the Government implements the new rules

CORPORATES
MADDOCKS, ASPAIL GROUP, HIAP HOE LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD