Tompkins Wake advises Obayashi Corporation

Monday 13 November, 2023

Tompkins Wake has played a pivotal role in advising Japanese construction conglomerate Obayashi Corporation on its recent strategic acquisition of a 50% stake in Eastland Generation, a subsidiary of the trust-owned infrastructure company Eastland Group. The acquisition is conditional on approval from the Overseas Investment Office (OIO).

Eastland Group, owned by Trust Tairawhiti, is known for its focus on the electricity generation sector.

The capital raised from this transaction is earmarked for the construction of new generation assets, including the TOPP2 geothermal project accelerating progress towards achieving 100MW of renewable generation before 2027.

This collaboration is expected to contribute significantly to New Zealand’s goal of a 100% renewable electricity future.

Obayashi Corporation, listed in Tokyo, will hold the Eastland Generation stake through its local subsidiary Obayashi Clean Energy New Zealand Ltd (OCENZ). The investment amount in Eastland Generation was not disclosed, but it was mentioned that OCENZ would be capitalized at $228 million following the acquisition of Eastland Generation shares. Obayashi's presence in New Zealand dates back to 2011, with notable projects including New Zealand’s first megawatt-class green hydrogen production facility, Halcyon Power.

Tompkins Wake’s team, led by Corporate partner Phil Taylor comprised experts Ben Palmer, Luke Bowers, Bryce Davey, Campbell Stewart, and Tabs Rauf, who delivered specialised legal workstreams.

Reflecting on the transaction and teams work, Phil Taylor said, “We are proud to have played a key role in this significant transaction, which not only marks a major milestone for our client, Obayashi Corporation, but also signifies a substantial step towards New Zealand’s renewable energy objectives. This partnership between Eastland Generation and Obayashi is a testament to the collaborative efforts and dedication of all parties involved.”

The firm acknowledged the efforts of everyone involved in putting together this significant transaction under tight deadlines and looks forward to the positive impact this investment will have on New Zealand's renewable energy landscape. Tompkins Wake worked with KPMG for Obayashi Corporation, with Forsyth Barr and Chapman Tripp acting for Eastland Generation.