Overseas investment decision for case 201710039 - ShapEd Consortium

An overseas investment in sensitive land, being its acquisition of a leasehold interest in approximately 16.5715 hectares of land for the purpose of constructing and maintaining four new schools.

An overseas investment in significant business assets, being the acquisition of leasehold rights where the consideration for such rights exceeds $100 million and the establishment of a business in New Zealand where the total expenditure required before commencing business exceeds $100 million.

The Applicant is acquiring a leasehold interest in approximately 16.5715 hectares of land for the purpose of constructing and maintaining four new schools under the New Zealand Schools PPP number 3 Project.

The Applicant was chosen by the Ministry of Education as the preferred bidder to undertake the project. The project will be undertaken through a public private partnership whereby the Applicant will be required to:

• design, contract and finance six new schools (four of the schools would be located on sensitive land) throughout New Zealand; and
• once the school is completed, manage and maintain the schools for a 25 year term.

Consent is required because Pacific Partnerships will have the power to appoint 1 out of 4 directors in the Applicant and have control rights in relation to the Applicant in excess of a 25% ownership interest.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(c) – Affect image, trade or international relations
28(f) – Advance significant Government policy or strategy
28(j) – Oversight and participation by New Zealanders