Overseas investment decision for case 200620024 - H Investments (NZ) Limited

To acquire:

1. an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land held for conservation purposes under the Conservation Act 1987 (if that conservation land exceeds 0.4 hectares in area); and
2. an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area by the regulator under section 37.

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

In 2005, the Applicant entered into negotiations with Carlin Enterprises Limited (Carlin) to acquire Carlin's property development business. As a result of those negotiations the Applicant acquired, in August 2005, the business assets and unsold land held by Carlin, being 103 unsold freehold sections in the Styx Mill Development in Christchurch, 41 unsold villa sites at Styx Mill, and the title to office premises used by the business in Christchurch. The acquisition of these assets did not require consent as property was not "land" as defined in the Overseas Investment Act 2005.

The Applicant also entered into a second agreement with Carlin to acquire the subject land, which comprises two vacant lots in the approximately 43 lot residential subdivision known as "Lakeside Estates" situated between Queenstown and Kingston near the shore of Lake Wakatipu. The subdivision was undertaken by Carlin and has been sold down over the last eight years. The two lots are the only lots in the subdivision that remain unsold. The Applicant advises that it proposes to on sell the lots as vacant lots.

The proposal to acquire the subject land is part of the assets forming part of Carlin's property development business. The acquisition of the property development business will result in the following benefits:

1. the creation of new job opportunities in New Zealand; and
2. the introduction into New Zealand of development investment for development purposes.