CAAN takes a look at a report by Peter Jennings on Foreign Investment Laws
DESPITE the huge sell-out of Australia since 1975 through the foreign acquisition laws … it is only now that the Treasurer has taken further steps for reform …
WAS Australia forsaken by the property sector? When not content with building for the Nation it was granted a ruling to sell 100% of ‘new homes’ overseas particularly in China … it did not stop there … because through buying our real estate these foreign buyers could also gain permanent residency!
It would seem together with the international student market a cabal was formed which has enabled the stealth attack on Australia’s intellectual property … it’s been like a walk in the park …
IT is alleged that Scomo when Treasurer in 2016 closed the loophole for the NT government to lease the Port of Darwin to Chinese-owned Landbridge in 2015 …
Yet despite the federal government having responsibility for national security the lease was issued!
CHINA does not allow foreign investment in its strategic assets …
Obviously with numerous reports on China’s espionage … and NOW Xi Jinping has confirmed the CCP’s control over all businesses including ‘private’ businesses …
-all companies and individuals have to co-operate with China’s intelligence establishment
Based on Australia’s experiences so far with China’s cyber and individual spying on our Parliament, political parties, government departments, universities and businesses … why engage further?
AS they acquire our Property (residential, agricultural and commercial) and the Silent Invasion of members of the CCP proceeds …
How can we be sure of preventing such espionage?
WHY go there? The World is a big place …
OBVIOUSLY with no protection for Australia’s National Estate … our Title Deeds perhaps our Biggest Export … is it any wonder that Beijing displays such contempt?
Chinese investment into our universities and research institutions has been large …
WHY was Australia slow to grasp that with Chinese ‘co-operation’ in our research that our intellectual property would benefit the PLA?
HOW will compliance requirements and penalties possibly be sufficient?
NOT much in this for Australia because there is no retrospectivity with the laws once passed! Australia has to live with the repercussions of the loss of a large share of the electricity grid, gas pipelines, and ports now owned by the Chinese!
Peter Jennings has come up with a solution that the government use its constitutional powers on national security grounds to take back control of the Darwin Port; and remunerate Landbridge.
Why doesn’t the Federal Government take the Port back?
Further, that the US, the UK, Canada and other democracies are also big investors in Australia … with China eliminated that could well encourage more involvement from others! Not that we all agree with foreign acquisition …
HASN’T taking China’s money been at the price of Australia’s national security and values too high a price to pay? … And it seems to have been totally unnecessary!
READ MORE from Peter Jennings, ‘China will be surprised how long it took us to act on Foreign Investment Laws’
Chinese billionaire and former windsurfer Gordon Tang (left).
CROMWELL PROPERTY GROUP …
IT would appear this is a prime example of why the Treasurer was motivated in late march by fears of Chinese companies taking over Australian businesses and reduced the threshold to zero for all bids
-these emergency changes will expire on 1 January when the new permanent changes will apply
WHEN one reads the report by Sarah Danckert, ‘The Chinese property billionaire eyeing Cromwell, the owner of sensitive Canberra assets‘ it is difficult to fathom how it is that the Takeovers Panel considers there is ‘no smoking gun’ evidence … despite the long list of events listed below:
–a coup to unseat the chairman of Cromwell Property Group and supplant him with corporate raider Gary Weiss, a representative of Cromwell’s largest shareholder, ARA occurred in Autumn 2020
-everyone except Gordon Tang viewed the extraordinary general meeting; Tang has large holdings in China’s property companies, in Singapore and the United States
–his closest connections include members of the Bush political dynasty
-his property portfolio in Australia is now being probed
-the Tangs are seeking control of a $2.1B real estate trust
-* at risk a building in Canberra that houses the TGA, a 49% share in a building where the Dept of Defence is housed; and Qantas’ global headquarters near Sydney airport
-the move appears to be ARA together with Tang to make a takeover offer without a full offer; pay other shareholders a premium; described as a ‘takeover by stealth’
-the Tangs have a $825M interest in Singapore listed Suntec REIT managed by ARA; SingHaiyi invests in ARA fund III and an ARA trust
-the Tangs gained an 8.8% interest in Cromwell in December 2017; now more than 13%
-mid 2019 Cromwell excluded ARA with a $375M institutional placement which led to David Blight, the MD of ARA to leave the Cromwell board
-* ARA again pushed for shareholders to vote against a resolution to approve the placement; and to vote corporate raider Gary Weiss onto the board at Cromwell’s annual meeting in November
-although the Tangs grip was growing ARA did not succeed in its bid to have shareholders veto the placement, and have Weiss on the board
-December 2019 Cromwell sought the Takeovers Panel declare ARA and the Tangs were acting together; controlling 37.4% combined stake yet not disclosing a takeover offer as required under Australian laws
-the panel threw the case out based on a lack of evidence
-March 2020 ARA attempted to install Weiss on the board; reinforcing Cromwell’s concerns about the Tangs and ARA
–ARA again lost when Tang family holdings custodians failed to vote all the family’s shares in favour of ARA’s resolution
–Weiss in response said that Cromwell continued to oppose his election to the board; why was Cromwell opposing appointment of its largest owner’s representative
-the Tangs reject claims they are working in concert with ARA
-Cromwell’s gearing remains at 40% within its stated 30 to 40% target range; that it was triaging risk across its European assets including in Poland; it has $670M in combined cash and undrawn facilities
-a company spokesman said the attacks on Cromwell were “particularly galling” given the relative performance of ARA’s own vehicles
-that ARA continues to agitate and attempt to destabilise even after Cromwell security holders have rejected their attempts to control Cromwell without paying a premium twice in the last six months
-Cromwell has offered to discuss a way forward; but these offers have not been accepted by ARA
-ARA has rejected further meetings with Cromwell until their nominee, Weiss is appointed to the board of Cromwell
READ MORE! ‘The Chinese Property Billionaire eyeing Cromwell the Owner of Sensitive Canberra Assets’
was the founder of the Melbourne-based Australia-China Belt and Road Initiative company was awarded two taxpayer-funded contracts in 2017-18 and 2019-20 totalling $36,850 to advise on China’s global commercial play.
Ms Dong was present at the signing of the Australia-China free-trade agreement in 2015 and recruited former federal Liberal trade minister Andrew Robb and former Labor finance minister Lindsay Tanner to the company’s advisory board.
NOW where should the torch light be shone?
IT would appear that DFAT was sending mixed messages when also to the contrary it raised concerns about China’s influencein the Pacific since 2017.
YET the Australian Government has allowed the Foreign Investment Review Board (FIRB) to operate and allow all but five ‘foreign acquisition’ applications …
Including ‘John Holland’ … ffs …
AND Australia’s residential property sector is awash with ‘black money’ …. As CCP operatives buy up our real estate … including the City of Chatswood … and this is being repeated along the rail lines and highways out to Epping … Ryde … Carlingford … up the line to Roseville, Lindfield and Killara, the Northern Beaches Peninsula … and the Wollondilly …
IN response to the Pandemic Lockdown the leading Australian (PCA) and NSW (UT) developer lobby organisations push for ‘more’ high immigration (and visa manipulation) to ensure their profit margins with the FIRB ruling allowing this sector to sell 100% of new homes to foreign buyers!
DESPITE this and more … Mr Dutton said:
“We have got to ask why this is happening and why is this influence taking place in our country and elsewhere,”
PRIOR to the Pandemic CCP members were flying into Australia numbering 50,000 a week!
-Numerous residential apartment towers are built by Chinese developers
-Chinese state-owned companies now own much of Australia’s power, mines, transport, dairy, beef cattle stations, vineyards, large agricultural properties, commercial property, Health care, Ports including Darwin
Chatswood is being built by CCP money …
DOES it seem that China is all too omnipresent?
Read more: ‘Belt and Road Advisory Board was stacked with People linked to CCP’
Our wander in Lindfield continued on both the western and eastern sides of the railway line.
IN Lindfield Avenue on the East side … where there have been recent $6M home sales to mega rich buyers from Hong Kong, Taiwan … more major residential apartment developments are underway including ‘Refined’ by the Mayrin Group.
This developer has appointed Northpoint as the builder of this project.
WHEN one searches to find out more about the Mayrin Group the following information appears on their website:
‘Propelled by our vision, Mayrin Group reshapes and revitalises communities. … ‘
‘An inspirational and leading property development company working in Australia and internationally, Mayrin Group creates harmonious spaces for living, working and relaxing that are planned in an integrated manner to create vibrant and sustainable communities.’
BUT no link providing company information? No information about the Board, the company management …
HOWEVER, there is an invitation … it reads:
You can contact us or browse our projects”
With a phone no. and/or email address provided …
SO we looked further, and found this article from the Australian Financial Review, ‘Sydney developer Mayrin pays $35M for townhouse site’ where in fact we found more of what we were looking for!
Reporter, Larry Schlesinger describes Mayrin Group as a Chinese-backed Sydney developer. In this report we learn about a group of Roseville home owners uniting to sell out to an overseas developer to make a motza!
William Wu, director said the development would deliver 40 townhouses close to the (CCP) Chatswood!
In 2017 Mayrin had three high-rise developments underway in Parramatta, Rouse Hill and Sydney Olympic Park (1000 apartments); the company is owned by Jing Wang.
The nine home sites in Roseville were sold through ‘SAVILLS Australia’ … Savills has an agency in Lindfield.
THUS the ‘Silent Invasion’ is well underway …
Read more … note also reference to JQZ closing a deal in St Leonards (the developer of Prime in Macquarie Park) …
THIS Killara property sold prior to the beautiful Lindfield home to a Taiwan buyer for $6.3M … it comes as no surprise, does it, with much overseas interest targeted through WeChat and Ray White’s Chinese Home Link connection?
IT would seem that the CCP expansion from Chatswood is well underway … with these North Shore home sellers keen to maintain their local ‘home values’ …
While across Sydney house prices continue to fall …
HAVE the wealthy Upper North Shore community contemplated that as they maintain the Shore’s ‘home values’ by selling to this overseas market … and move onto Byron Bay … that with more foreign buyers particularly from China, Hong Kong, and Taiwan that these exclusive locations are being acquired?
THAT as the new ‘Permanent Residents’ move in they are also buying and setting up business …
WHAT opportunities will there be in turn for the established North Shore Families to live and work in the ‘North Shore’ as more and more of these new overseas buyers move in? As their Familes are priced out by overseas UHNW and HNW?
VIEW PART 1: ‘Foreign Buyers from Hong Kong Taiwan are buying Prestige Aussie Property Online!’
Communique that CHINA’s next steps will be to focus on more Australian exports including dairy, seafood, oatmeal and fruit to face stricter quality checks or tariffs however this may backfire because China owns many of these companies …
*Nor is there an Australian public register of China’s acquisitions
BUT…Prof. Peter Drysdale from the ANU has put together investment data from the FIRB together with company reports and media stories which can be found on the ANU’s ‘Chinese investment in Australia’ database of the Mainland direct commercial acquisitions in Australia
-another project of KPMG and Sydney university concerns the range ofChinese outbound direct acquisitions in Australia including from four of Australia’s largest abbatoirs
Including Queensland’s Kilcoy Pastoral Company controlled by China’s ‘New Hope Group’
Mengniu … part-owned by the Chinese Government now owns much of Australia’s dairy including:
-Dairy Farmers, Masters and Pura milk; Big M, Dairy Farmers and Pura Classic flavoured milk; Dare and Farmers Union iced coffee; Vitasoy soy milk and coconut milk; and juice brands Daily Juice, The Juice Brothers and Berri; and Yoplait yoghurt.
-Tasmania’s VDL owned by Chinese company Moon Lake
CHINA is the largest export market not only of liquid milk, powder, butter but ‘live dairy cows’ … which tells us that AUSTRALIA may well lose its market altogether …
Exports of $1.25B to China of the total $2.89B global wine exports
–China is acquiring Australian vineyards
-no public listing of Chinese ownership of Australia’s wineries*
-Yantai Changyu Pioneer Wine Co owns 80% of Kilikanoon Estate of Adelaide
-by 2018 Chinese owned 10% of the Barossa Valley winemaking region incl. Chateau Yaldara, and 1847 Wines
-Max’s Vineyard was sold in 2018 to a Chinese-backed investor for more than $3 million
-and Cimicky Wines for $6.6 million
-Weilong Wine Grape Company invested $120M to build a winery in Mildura
-93,000 hectare Cubbie Station and its access to water from the Murray Darling!
-China sources two thirds of its iron ore for steel from Australia
-years ago China invested in Fortescue Metals
.but has since sold down its $US771M stake
–Yancoal Australia controlled by State-owned Yankuang Group; one of Australia’s biggest thermal coal exporters; with China a key market
WITH so much of what was formerly ‘Australian Owned … Australian Made’ now owned by CHINA … therefore the CCP … it would seem that when some among us say ‘it doesn’t matter who owns it …’
WHEN China now OWNS so much of what was Australian … that you should in turn ask them Why?
For them to make such an ignorant statement … it would seem that they have a vested interest in the sell-out of Australia …
AND if the FOREIGN INVESTMENT REVIEW BOARD (the FIRB) had not so secretly been selling this Nation out … with only a mere five ‘foreign buy-up applications’ rejected …
AUSTRALIA would be in a far more secure position than it is now! This bully would not have so much negative impact …
*Professor Allan Fels, a former chairman of the ACCCdescribed the FIRB as a black box and said the scrutiny was long overdue.
-that the FIRB was not a regulatory body; it was not independent, politically *
MEANWHILE on the ‘Almost Australian’ program the story of an Afghani child orphan who made his way here alone as a refugee yet he is still on a ‘Temporary Protection Visa’ more than 10 years later … but Money Launderers are welcome in abundance … ‘what a corrupt little nation we have become’ – to quote LVO from memory!
Key Points …
–Emma Vadas from Standen Estate Agents said 90% of enquiries from Chinese have consumed her company with proposals
-these are buyers who have bought and sold 2 to 4 years ago
-real estate speak: ‘such big drops would not happen if a large number of foreign buyers swooped in to capitalise on a temporarily depressed market’
WHY does the FIRB not ensure that the property market is only open to Australian buyers esp. in a recession? Enabling Australians to take advantage of lower house prices … FFS!
YET foreign buyers who are prevented from flying here can buy Australian homes online!
WHAT sort of a government allow the FIRB, and real estate marketers in China luring parents of students studying in the US and the UK to look to Australia
-offering permanent residency with Medicare benefits and access to a range of Visas for family members
Australia a SANCTUARY … with everything they want … and they are coming for it … and you know what … you can’t blame them … BLAME OUR GUVMNT … as they languish before the CCP hoping for an enquiry as our YOUTH are condemned to a life of poverty! FFS!!
Related Article: ‘Juwai China is back in Business ahead of the World and Chinese Property Buyers are back in Australia’
MORE about the unyielding Foreign Buyer invasion of the Australian Housing Market!
The FIRB Annual Report issued a week ago revealed:
–mainland Chinese property buyers investment in 2018-19 dropped to $6.1B
-down more than 50% from 2017-18; lowest since 2012-13
–Hong Kong Chinese investment of $2.8B in 2017-18 to $9.3B in 2018-19*
–Singapore buy-up increased from $7.8B to $9.8B
–Japanese investment increased from $2.2B to $3.8B
WHAT Juwai IQI executive chairman Georg Chmiel, perhaps should have said that it was Beijing Capital Controls alone that led to the drop in Chinese buying our Residential Property …
Because small percentage increases in fees and stamp duty mean little to HNW from China
UNTIL NOW … with a return of these foreign buyers to the Australian housing market … as the Capital Controls have been lifted …
-non-bank lenders are again willing to finance Asian buyers
-compare the 8% Australian stamp duty with the 20% taxes in Singapore and Vancouver
HOW are globalisation and the FIRB acting in the interests of aspiring Australian First Home Buyers?
*75% of these foreign buyers are seeking properties priced at $1M or less with the median being $610,000… competing with the Australian First Home Buyer …
-like Nicki and Jay in ‘A Current Affair’ Story ‘Foreign Buyers They’re Back’ 12 May 2020
Note: houses in Chatswood are priced from $2M; Chatswood has good schools, health services, and transport!
RECENTLY CAAN learnt that some developers are restricting sales to ‘a level at a time’ … perhaps this practice not only locks out Australian First Home Buyers but is accelerating the ‘silent invasion’ ???
WHY not make your objections to your local MPs?? Send an email message then you have a record in writing!
WHEN will the Morrison Government direct the developer sector to build affordable and social housing for Australians with a need for 200,000 social housing dwellings; affordable housing for First Home Buyers; and homes built for Firestorm victims?
IMPORTANT! In this related article from Adele Ferguson, ‘A Black Box that needs an Overhaul: How has the FIRB escaped scrutiny?’
It was revealed that:
Professor Allan Fels, a former chairman of the ACCCdescribed the FIRB as a black box and said the scrutiny was long overdue.
-that the FIRB was not a regulatory body; it was not independent, politically *
-nor transparent; conditions imposed are generally not released to the public
CHINA IS BACK IN BUSINESS AHEAD OF THE WORLD … AND CHINESE PROPERTY BUYERS ARE BACK IN AUSTRALIA … further confirmation from this report on ‘A Current Affair’
CAAN has been sharing the truth with you through Expert Reports since November 2014 …
NOW it appears it has taken the frightening consequences of the WUHAN PANDEMIC … to bring home the message to our politicians and even some of those who have prospered so much from Chinese buyers in the Australian Property Market …
WHAT will it take for the Morrison Government to implement and enforce the second tranche of the Anti-Money Laundering Laws for the Real Estate Gatekeepers?
-having exempted these gatekeepers in October 2018
WHEN the ‘flying pegasus’ presents a major security and financial risk to Australian Society … ?
ASK why has it taken so long for NINE … a major media network to tell it as it is?
CAAN will go even further than the closing comment of Robert Klaric, Real Estate Industry Advisor especially concerning Chinese property buyers …
‘They have a lifestyle, they have freedom, and they can protect their wealth from the CCP, from the Chinese Communist Party.’
Because the CCP controls all its citizens … it has been so easy for the Party not having to conduct military warfare but simply for Party members to arrive on a Flying Pegasus … in a Silent Invasion … and buy Australia’s National Estate … who can we thank for this?
Who has had the greatest hand in this?
Also view these related articles:
‘Juwai predicts Chinese Investors remain keen to buy Australian property: Are they seeking cheaper prices?’
TRANSCRIPT: FOREIGN BUYERS: ‘THEY’RE BACK’: A CURRENT AFFAIR
As our borders closed, local house-hunters thought the competition would ease. And It did for a while. But foreign buyers with deep pockets are back. #9ACA
Brady Halls, Reporter: Estate Agent James Crowe is finally back doing what he does best. (Morton Real Estate)
And Nicki and Jay have been chomping at the bit to get back into the race. The couple have been house hunting for a year now, and the Covid shutdown made their search even slower.
Nicki: It did a lot, a lot of the properties actually dropped off the market we saw; so things that we had been watching to see the prices fall were no longer on line.
Halls: But now another obstacle has popped up.
(Chinese buyers occupying auctions)
Nicki: We don’t need any more competition than there is already. We want to find something as soon as possible before the rest of the World!
Halls: And that competition is coming from where Covid began!
Lulu: We are actually busy.
Michael Pallier: Yeah, we just sold this house to a Chinese buyer, and they specifically bought it to use when they are not in China. *
Georg Chmiel, Executive Chairman at Juwai-IQI: China is back in business much earlier than the rest of the World.
Pallier: (As he looked over a balcony he indicated to Brady Halls)
New Chinese owners there, Chinese owners here, and the whole of this area is, you know, Chinese population.
Robert Klaric: What we will see is that the wealthy mainland Chinese will look towards Australia now to secure their wealth and secure their health*
CAAN: As shared previously with you … when foreign buyers buy our residential property they can gain a ‘Permanent Resident Visa’ with MEDICARE benefits thrown in!
And through Visa Manipulation, and able assistance from Migration Agents they can access a vast range of Visas including: student, investor stream, Family, Parent, Grandparent, and Guardian … the whole Family Clan may come to Australia!
Halls: Chinese money is starting to flow back into Australian property.
These new apartments in Sydney and Melbourne have reportedly seen unprecedentedsales and enquiries from wealthy Chinese taking advantage of our Covid-19 affected real estate market.
Chmiel: Chinese enquiries were only down 14% in the first quarter versus 40% for local buyers so much, much less than the local buyers.
Halls: Georg Chmiel is from Juwai, a Chinese property portel. So the demand from China has not fallen?
Chmiel: Definitely for a number of reasons on the one side Australia managed the Covid crisis really well; Australia is very attractive for students, investors and retirees, and also the market, the Australian property market is very resilient.
Halls: Michael Pallier and wife Lulu from Sotherby’s Realty in Sydney’s east vouch for that.
Michael Pallier: We have had quite a bit of interest from people from Asia.
Halls: This apartment is generating much foreign interest. And he sold another one below to a Chinese buyer only last month.
Pallier: They can’t get enough of it – clean air, clean food, great education, safe environment … it’s, it’s paradise for them.
Halls: What’s the appeal here in terms of Aussie property?
Chmiel: Chinese buyers like Australian real estate especially over UK and US real estate given the Covid Crisis has hit the UK and US much, much stronger.
Klaric: A lot of the mainland Chinese are seeing this as an opportunity to exploit a great deal because that’s what they are going to see in a property market for the next six months.
Halls: Robert Cleric is a real estate industry adviser, and he has had his share of dealings with Chinese buyers now keen to buy up our properties during this Covid crisis which he says has seen prices drop by ..
Klaric: Probably seen 10% during this period
Halls: And then there’s been the fall in the Aussie dollar making our property far more attractive to overseas buyers.
Chmiel: That’s absolutely true. It’s the Australian dollar is down 10% against some of the currency so that’s a nice buffer which people can include in their budgets.
Halls: Lulu is fielding many Chinese inquiries ..
Lulu: Yes, there’s always demand.
Halls: On this house with its lovely harbour views –
Lulu: And the Chinese people will always like Australia.
Halls: And across town James at Morton Real Estate is much the same.
Crowe: We have got lots of those clients who are certainly still in the market, and still keen to buy.
Halls: This three-bedroom terrace he is marketing just walking distance to the city has caught the eyes of both domestic and international buyers prompting frustration from this local onlooker.
Australian Buyer: The Australian property is treated as an investment not as somewhere you live; so unfortunately that has affected the market extensively.
Halls: Robert Cleric believes it’s time Australia didn’t sell its property but long term leased it like Asian countries do.
Until then he says Australia offers Chinese buyers a wonderful security blanket.
Klaric: They have a lifestyle, they have freedom, and they can protect their wealth from the CCP, from the Chinese Communist Party.
SEARCH FOR ‘FOREIGN BUYERS THEY’RE BACK’ ON ‘A CURRENT AFFAIR’ 12 MAY 2020