The US giant is buying Mt Wellington homes so it can grow in this country. Photo / Getty Images
The US giant is buying Mt Wellington homes so it can grow in this country. Photo / Getty Images
One of the world’s biggest businesses has won clearance to buy Mt Wellington residential properties for an expansion of its New Zealand operations.
Foreigners can’t buy our homes after a law change last decade introduced by Labour’s Phil Twyford.
So Coca-Cola Europacific Partners New Zealand, 41 per centowned by United States interests, went to the Overseas Investment Office (OIO) for special clearance to buy the Kiwi land it needs to grow here.
Its operations are alongside a line of smaller homes in Auckland, most of them on cross-leased sites, some tenanted.
The business which sells products in more than 200 countries won clearance last month to buy the houses in two deals announced this morning.
The giant plans to demolish the homes and use the land for non-residential purposes to expand its existing site, used for manufacturing and distribution activities, according to the OIO.
It already owns the adjoining land, the decision noted.
Coke came knocking for a Carbine Rd property and the owner said yes. Photo / Google Maps
Coca-Cola’s premises are on Carbine Rd but it has five manufacturing plants throughout New Zealand and four big distribution centres.
Dianah and Paul Moody can sell their home on its 736sq m site to Coca-Cola. And next door, Rasheed Ahmed can sell his 736sq m place to the US giant.
The properties will continue to be tenanted to a third party for a short period while titles are transferred and necessary preparations are made for the expansion.
But first, Coke needed Government authority to grant it clearance.
Coca-Cola will continue to leave the homes occupied as they are “for a short period of time” until the deals settle and necessary preparations are made for the expansion.
Chapman Tripp’s Tessa Baker acted for Coca-Cola on the land deals.
The purchases were called “one-off” under the pathways category under the law which allows the purchase by foreigners with certain restrictions, like applying to the OIO and being cleared.
Coca-Cola's headquarters in Mt Wellington. The red dot marks one of the home it is buying. Photo / Google Maps
The US giant’s large Carbine Rd premises are alongside a group of single-level smaller residential properties: the interface where residential zoning meets much larger commercial zoning.
Brick and tile flats or units, with large lawns and car parking, are right alongside the American’s premises on the busy thoroughfare.
So it’s that residential land Coca-Cola wants in this country to give it more room to grow.
The business said today of its two latest land deals: “This enables an eventual expansion of the footprint of CCEP’s existing site in Mt Wellington into one cohesive site to align with business growth and future production and distribution operations. Future-proofing this site is fundamental to our continued investment on-site and employment across the full range of functions to meet the future needs of CCEP’s operations”.
It probably won’t have to pay huge money for the places. Auckland Council values the Carbine Rd homes at $1.5m each.
Coca-Cola Europacific Partners New Zealand is one of the largest manufacturers and distributors of ready-to-drink beverages in this country, including non-alcohol, alcohol, energy drinks and coffee.
“We’re proudly Kiwi with a rich heritage of providing New Zealanders with access to the best-tasting beverages at every occasion for more than 100 years,” the business says.
Sprite, Fanta, Lift, Schweppes, Powerade, Mother, Deep Spring and FUZE Tea are its brands but in this country, it also produces L&P, Pump, Kiwi Blue, Zephyr Coffee and Keri Juice.
Its also does brewing, distilling, roasting, sales, marketing and distribution of alcohol and coffee brands like Jim Beam, Makers Mark, Canadian Club and local craft beer brand Fortune Favours.
The business employs more than 1000 people in New Zealand.
Last year, the Herald reported Coke fans already reeling from news Coca-Cola is changing its bottles were in for an even bigger shift with two popular Coke products set to disappear from shelves.
The business announced the end of Coke Zero and Coke No Sugar, replacing the two drinks with a new offering: Coke Zero Sugar.
