Why use shell companies? ASB new waterfront building, Auckland.

[McDuck]

I was just reading todays Herald report on how the big four banks are spending (the interest we pay them) on flashing up their offices. (link below)
The ASB is moving to a prime spot on the waterfront.
Nice score I thought.

The ownership trail of the building they are renting goes like this….

1) Fletcher Construction is nearing completion of ASB's $132.1 million North Wharf headquarters in Auckland, owned by Kiwi Income Property Trust and to be leased by the bank.

2) The Trust's Manager is Kiwi Income Properties Limited, which is wholly owned by Colonial First State Global Asset Management.

3) Colonial First State Global Asset Management are a global asset management business with experience across a wide range of asset classes and specialist industry sectors. As a wholly owned division of the Commonwealth Bank of Australia.

4)The Commonwealth Bank owns the ASB. Did I just loop back to the start??


Herald story link> http://www.nzherald.co.nz/property/n...ectid=10851745

[Bob Kane]

That's the perfect landlord/tenant match.
One party rents the building from itself.

I do recall sometime ago that MacDonalds owned its buildings and rented them to the hamburger division.
Once again - the perfect tenant for that landlord.

[McDuck]

That's the perfect landlord/tenant match.
One party rents the building from itself.

I do recall sometime ago that MacDonalds owned its buildings and rented them to the hamburger division.
Once again - the perfect tenant for that landlord.

Lol. Yes.

You mean that McDonalds are really landlords and property speculators,
they just manufacture the ideal tenants by selling minced meat franchises.

Lol.
Still, I’m curious about the tax structure around this ASB shell like ownership chain.
You know me, very concerned when transnational structures might be trying to do a shifty on our country (and its tax take).

Also what happens to the huge ASB tower building that the ASB are presently inhabiting. A ton of our interest went into making that flagship structure. Is there some sort of contra deal going on there?

[PC]

If they could just base themselves virtually in Ireland - think of how much more tax they could avoid!

[lawt]

Doesn't look like a complete loop as Kiwi Income Property Trust is publicly listed on the NZ stock exchange.

https://www.nzx.com/companies/KIP

[McDuck]

Doesn't look like a complete loop as Kiwi Income Property Trust is publicly listed on the NZ stock exchange.
https://www.nzx.com/companies/KIP

I always wonder what that means in terms of company control and direction. Who really steers the deals and arrangements in a large transnational organisation, the shareholders? The board? Or is it the people who assisted the board members to get all the seperate jobs that in total make up their their career.

[Wayne]

2) The Trust's Manager is Kiwi Income Properties Limited, which is wholly owned by Colonial First State Global Asset Management.

Since when was KIP wholly owned by Colonial?