Australian supermarket giant gets the nod to buy residential land for supermarkets

Thursday, 19 December 2019

Australian supermarket giant Woolworths, the owner of the Countdown, Fresh Choice and Super Value supermarkets, has the green light from the Overseas Investment Office to buy up to 75 hectares of residential land.

Australian supermarket giant Woolworths has the green light to buy residential land for supermarkets and other facilities in New Zealand in the next two years from our overseas investment watchdog.

Two subsidiaries owned by Woolworths have been granted a 'standing consent' to buy up to 75 hectares of residential land for supermarkets and other facilities that support its operations in New Zealand and to complete up to 10 transactions before the consent expires on December 1 2022.

The Overseas Investment Office (OIO) has granted General Distributors and Wholesale Distributors, subsidiaries of the Woolworths Group, the consent to acquire residential (but not otherwise sensitive) land under the Overseas Investment Act.

Woolworths Group is one of the largest supermarket operators in New Zealand and runs the Countdown, Fresh Choice and Super Value supermarkets.

The New World brand is owned by New Zealand-owned Foodstuffs, the biggest supermarket and grocery operator in New Zealand.

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Its chief rival is the locally-owned Foodstuffs whose brands include New World, Pak 'n Save, Four Square, Henry's Beer Wine & Spirits, Liquorland and Raeward Fresh.

Countdown has been approached about whether it plans any residential housing on the residential land it has permission to acquire.

In Halswell, Christchurch, Countdown's owner Woolworths announced in February 2019 a plan to build a major Christchurch subdivision with 272 new homes, a supermarket, shopping area, parks, pre-school, eateries and a covered swimming pool.

OIO said it had strict oversight of any transactions undertaken by investors that were granted standing consents. The applicant had to notify the OIO once each transaction had been settled.

'Applicants must meet rigorous criteria to be eligible for a standing consent.

'Only quality investors with a proven track record, detailed business plans, and processes to ensure they comply with conditions of the standing consent can be granted one.'

In April next year Countdown plans to open the country's first dedicated online store, in Penrose, Auckland, in response to the rapid growth in online delivery sales.

The centre will fulfil online delivery orders for Mt Wellington, St Johns, Three Kings, Ponsonby, Mt Eden, Grey Lynn Central, Botany, Manukau City Mall, Meadowlands and Manurewa.

The centre will employ 165 staff, stock 27,000 items and be partially automated..