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Foreign investment proposal: Birkenhead point, Drummoyne, Sydney



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TREASURER

EMBARGO

STATEMENT BY THE TREASURER, THE HON JOHN HOWARD, MP FOREIGN INVESTMENT PROPOSAL . ■

BIRKENHEAD POINT, DRUMMOYNE, SYDNEY.

The Government has given approval in terms of its foreign investment

policy to a proposal by the Singapore-owned Hyatt Kingsgate group to

acquire the Birkenhead Point complex in Drummoyne', Sydney from the AMP

Society.

The proposed acquisition falls within the scope of the Foreign Takeovers

Act because it would have resulted in the Birkenhead Point Complex

becoming wholly foreign-owned and controlled.

The Government considered that the proposal v?as consistent with its

.foreign investment policy because it would result in net economic

benefits through further development of the tourist potential of the

complex. In this context, the parties propose to upgrade existing

attractions such as the marina and museums, introduce new entertainment

and recreational facilities and promote the complex nationally and

overseas. ·

The Government noted that the parties propose to maintain neighbourhood

shopping' facilities offered by the centre and to encourage existing

lessees to remain in the complex. The Government further noted that the

complex has to date not provided a commercial rate of return to its

owners and that Australians had been given the opportunity to acquire

the complex.

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The terms of the Government's approval require the parties to '

reintroduce a minimum of 49% Australian equity into Hyatt Kingsgate1s

overall.Australian operations, including Birkenhead Point, at the

earliest practicable opportunity but in any event within five years»

In taking a decision on the proposal, the Government considered the

views of interested third, parties and noted that the New South Wales

State Government supported the proposal.

I

CANBERRA ACT 1 9 May 1981