From mid-2016 Bay of Plenty businesses have a new voice, Bay of Plenty Business News. This new publication reflects the region’s growth and importance as part of the wider central North Island economy.
12 BAY OF PLENTY BUSINESS NEWS January/February 2017 Waikato companies attract significant angel funding Two Waikato companies are benefiting from Bay of Plenty-based investment facilitator Enterprise Angels’ growing presence in the Waikato. Ruakura-based companies Quantec and Synthase Biotech have together raised more than $1 million, bringing the total number of Waikato companies that have been funded by Enterprise Angels to five. Both companies received strong interest when they listed on the newly launched AngelEquity platform. AngelEquity’s goal is to offer wholesale investors the opportunity to invest in New Zealand’s early-stage, angelbacked companies anytime, anywhere. Agri-tech company Quantec raised a total of $429,000 - well above the targeted $320,000. The Government’s Seed Co-Investment Fund (SCIF) committed a further $100,000 Synthase Biotechs’ team from left, executive director, Andrew West, operations manager, Janine Cowling, senior scientist, Alex Hennebry, chief technical officer, Steve Hodgkinson and chairman, Mark Backhaus. to the company. Quantec uses its patented discovery of a novel milk protein to develop applications in human and animal health. Between them co-founders Dr Rod Claycomb and Dr Judy Bragger have many years’ experience in research and commercialisation in the dairy industry in New Zealand and overseas. Also based out of the Innovation Park, Synthase Biotech has reached its maximum investment target, with an injection of $800,000 in the start-up’s first capital raising outside of its founding group, including funds from the New Zealand Venture Investment Fund (NZVIF) and existing HVAC-I offers expert solutions Bigger is often thought of as better, but this is often not the case with a heating, ventilation, and air conditioning (HVAC) system. You want the best sized system for your house or room. If the system is too big for the home, the unit heats up the room too quickly, says HVAC-I consultant Lauren Wills. “It then turns off and on in a rapid cycle. It’s not an efficient method of heating.” HVAC-I owner Jarrad Seath says size is the main query customers have when investors. Synthase Biotech has developed a unique and powerful enzyme trademarked as Aloxsyn, which remediates damage from oxidation of fats in cell membranes. Chairman and major shareholder, Mark Backhaus, says the initial focus is on enhancing the survival and longevity of sperm from bulls used in the dairy industry and on improving the ability of cows to conceive. “However, Aloxsyn is a ‘platform technology’ that can be applied in many situations, including extension of shelf life in foods, providing longer storage of human organs and tissues for transplantation, or considering installing a heat pump. He advises getting a number of quotes. “That way you can compare prices, brands, and advice from technicians, and know you’re getting the best fit for your home”. He offers a few more tips for homeowners about choosing systems. • Wall mounted units sit high on the wall, and come in a range of styles and series. Some options are slimmer or more compact in size than other systems, and can Quantec’s technical team from left, Dr Judy Bragger, Dr Colin Ogle and managing director Dr Rod Claycomb. biopsy, and in human health itself,” he says. “Synthase has had an exceptional 12 months, including winning a grant of $950,000 from Callaghan Innovation and being listed as a finalist in the NZ Innovation Awards”. Since launching in 2008, be more energy efficient. • If you’re looking for a more energy efficient option to replace an electric wall heater, consider a floor console. • Ceiling cassettes sit flush with the ceiling, blow air in four directions, and can be placed in the centre of the room or adjacent to a wall. • Multi systems can consist of a number of different units, all running off the one outdoor unit. • Ducted systems are individually tailored with Enterprise Angels has facilitated the investment of more than $22 million in 53 early stage and established businesses across a variety of industries, driving economic and business development within the Bay of Plenty/Waikato region and New Zealand. a unit sitting in the roof space. This provides airflow to ducts located throughout the house, and can be set up with Zone Control, allowing you to switch Zones on and off independently. 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BAY OF PLENTY BUSINESS NEWS January/February 2017 13 Plans finalised for Zespri’s new head office Work will start in the next few months on Zespri’s new $40 million head office in Mount Maunganui. Zespri chief financial officer Dave Hazlehurst says Zespri’s new building will provide a home for its world-class brand and a future-proof building to support the industry’s strong growth outlook. “Zespri has well and truly outgrown its existing building as the organisation has grown to support the industry’s rapid progress. “With global sales expected to more than double to $4.5 billion by 2025, the new building will provide the facilities we need to deliver this growth for the kiwifruit industry. We’re excited to show our community and growers something we can all be proud of,” said Dave. “This development will connect us with both our local community and the global markets, and includes redeveloping the public park so the community can continue to enjoy this green space in the heart of the Mount. “Zespri’s investment in the new building shows our longterm commitment to Bay of Plenty which produces around 80 percent of our premium Zespri Kiwifruit,” says Dave. The new building will be a hub for the kiwifruit industry with facilities to host growers and office space for other kiwifruit organisations. It will also provide a fitting venue to host international trade, government and media delegations on behalf of the industry. Zespri is investing over Work soon to start on Southern Pipeline harbour crossing Brian Perry Civil, the local arm of Fletcher Construction, has won the contract to construct a pipeline deep under Tauranga Harbour as part of the Southern Pipeline project. This is the last major work for the $99M Southern Pipeline, a large wastewater pipeline that will divert much of the city’s wastewater across the harbour to the treatment plant at Te Maunga. The Chapel Street wastewater treatment plant is struggling to cope with growth pressure, whereas the treatment plant at Te Maunga has room for future expansion. The new pipeline will give the city’s wastewater network some much-needed capacity which will reduce the risk of sewer overflows into New dealership for Nicholson Autos the harbour. The work under this contract provides a pipeline link under the harbour from the Memorial Park Pump Station across to the pipeline section that has been constructed at Matapihi. The harbour pipe will be drilled from both ends to a maximum depth of around 40m. Construction is planned to start in March 2017 and will be completed by December 2017. Brian Perry Civil will An artist’s impression of the new head office at Mount Maunganui. take the next few months to mobilise specialist equipment and materials required for the project. Most of the pipeline has been completed. The Southern Pipeline is fully operational from Maleme Street to Memorial Park and a new pump station in Memorial Park has been constructed. Remaining sections are a 400m length between Matapihi Road and Te Maunga, and the harbour crossing. $40 million for design, build, fit out, furnishing and landscaping of the new 4800m2 landmark office complex with basement car parking. The three-story complex will stand in a park-like setting and includes onsite parking for around 190 cars, mostly underground, to reduce the traffic impact on the community. “We’ve incorporated some features to make the building more efficient and sustainable, like a smart façade, efficient heating and air conditioning services, and water recycling. “We’ve also developed flexible working arrangements to allow staff to work in different workspaces when doing different work – this increases productivity and reduces the physical footprint of the building,” says Dave. The architects for the project are Warren & Mahoney and Beca has been appointed as the project manager. The construction contract will open for tender shortly. Zespri bought the land on its site at 400 Maunganui Road from Tauranga City Council in December 2015 and has been operating from the site since 1996. Work will start on the site in the first quarter of next year, with the building set for completion by the end of 2018. The old brick Zespri building, constructed in the 1970s, will eventually be demolished and replaced with parkland. By KATEE SHANKS Nicholson United Autos has continued with its promise to invest in the Eastern Bay with the opening of a second dealership in Whakatane. On December 1 and across the road from the Nicholson Autos Holden/Suzuki Commerce St showroom, the new Nicholson Autos Mazda dealership welcomed people into its new premises. Nicholson Autos co-owner Dean Nicholson and general manager Brad McKenzie said it was awesome to be able to keep the Mazda dealership local. “Wally Sutherland, who has had the Mazda dealership in the region for the past 44 years, did a really good with the brand,” Mr McKenzie said. “Mazda is riding high in the marketplace so it’s exciting times.” The new dealership has its own parts and services department and employs six people, in addition to the 20-strong Holden/Suzuiki team. The Nicholson Group opened its Holden/Suzuki Whakatane dealership only a few months ago but made it clear the family-owned business wanted to be part of the Eastern Bay community. Nicholson United Autos general manager Brad McKenzie and co-owner Dean Nicholson. ANZ sells UDC Finance ANZ Bank New Zealand Ltd has agreed to sell its asset finance business, UDC Finance, for NZ$660 million to HNA Group, a Fortune Global 500 company focused on tourism, logistics and financial services. ANZ New Zealand CEO David Hisco said the sale followed a strategic review and was in line with ANZ’s strategy to simplify its business and focus on its core banking activities. The purchase price of NZ$660 million represents a price-to-book ratio of 1.6 times net assets of NZ$424 million as at 30 September 2016. “UDC Finance is a great business which is performing well,” said Mr Hisco. “We’re extremely proud of what our teams have achieved over the years providing specialist asset-based finance to New Zealand businesses for plant, vehicles and equipment.” Mr Hisco said the purchase of UDC Finance by one of the world’s largest asset finance and leasing companies was a significant vote of confidence in the New Zealand economy. “HNA is well placed to invest in specialist asset finance products and systems which will help UDC expand further in the future,” said Mr Hisco. HNA doesn’t currently operate in New Zealand so this sale will maintain competition in the asset finance and leasing market which is good for customers. HNA intends to preserve UDC’s operations, offering ongoing employment to all existing UDC employees and maintaining existing customer lending. Since its founding in 1993, HNA Group has evolved from a regional airline based on Hainan Island into a global company with over US$90 billion of assets, US$30 billion in annual revenues and nearly 200,000 employees across North America, Europe and Asia. The financial arm of HNA operates a diverse set of businesses in equipment leasing, insurance, and credit services, including China’s largest non-bank leasing company, one of the world's largest aviation finance businesses, one of the world’s largest container leasing businesses, and Europe’s largest trailer leasing business. “UDC’s highly diversified portfolio offers significant growth opportunities in Australasia and supports HNA Group’s disciplined approach to expand our core tourism, logistics and financial services businesses,” said Adam Tan, Vice Chairman and CEO of HNA Group. “We are excited to welcome UDC Finance to the HNA Group family and we look forward to working with their experienced management team as they continue to support the growth and aspirations of New Zealand businesses, investors and consumers.” The UDC sale is subject to closing steps and conditions including engaging with investors on the replacement of the Secured Investment program and regulatory approvals. Completion is expected late in the second half of the 2017 calendar year. AVERAGE *According to Computer Economics and Gartner Surveys IT SPEND PER USER www.stratusblue.nz $3,800 P.A. * TECHNOLOGY SOLUTIONS FROM GROUND TO CLOUD