East Tamaki-based Fisher & Paykel Healthcare (FPH) Corporation has received approval from the Overseas Investment Office (OIO) to proceed with its acquisition of a 105-hectare site in Karaka.
The dual stock exchange-listed medical device company said in a media statement it can now progress its plans to acquire the land to construct a second New Zealand campus to complement its existing location at the Highbrook development in East Tāmaki. The company’s products are sold in more than 120 countries worldwide.
“We welcome this approval from the OIO,” said Lewis Gradon, managing director and chief executive officer. “We see the Karaka campus as both an important enabler of our growth and a positive addition to an area undergoing exciting change. We look forward to working with tāngata whenua and other local and regional stakeholders as our plans take shape.”
Development of the new campus will occur over 30 to 40 years. The initial focus will be on effecting a private plan change to re-zone the land, designing the core infrastructure and commencing earthworks over the next five years, the statement said.
“Fisher & Paykel Healthcare is committed to environmental and social responsibility,” said Jonti Rhodes, VP supply chain, facilities and sustainability. “We understand that our role is to be good custodians of the land as we prepare it for its next journey.”
The purchase of the Karaka land will be funded through a combination of operating cash flow and debt facilities. In recent months, the company has secured additional debt funding with a number of leading banks. As at March 31, 2023, the company had total available committed debt funding of $704 million, of which some $620m was undrawn.
A 10 per cent deposit of the $275m purchase price was paid in September 2022. The balance will be paid on staggered settlement dates, with $189.5m to be paid in May, a further $43m paid in January 2026 and the final instalment of $15m in December 2026 [a summary of the key terms of the sale and purchase agreement are available in the company’s news release dated September 1, 2022].
FPH, whose shares on the NZX are valued at $16.04 billion, has a current share price close to its one year high at $27.47 per share.