Applicant
Kingstown Volcano Springs Limited
Case number(s)
201410060
Decision date
Type
Decision
DecisionConsent granted
Section 12(a) Overseas Investment Act 2005
Decision date23 July 2014
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in approximately 27 hectares of land located at 18 Somerville Road, Okoroire (Okoroire Hot Springs Hotel).
Consideration$3,300,000
ApplicantKingstown Volcano Springs Limited
People’s Republic of China (100%)
VendorOkoroire Hot Springs Hotel Limited
New Zealand (100%)
Background

The Applicant intends to develop the existing hotel and related facilities (including new accommodation and hot pools) in order to provide a new tourism experience for visitors.

The overseas investment transaction has satisfied the criteria in section 16 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 Act 2005
17(2)(a)(i) – Creation of Jobs
17(2)(a)(ii) – New technology or business skills
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Added market competition & greater productivity
17(2)(a)(v) – Additional investment for development purposes
17(2)(b) – Indigenous vegetation/fauna
17(2)(d) – Historic heritage
17(2)(e) – Walking access
17(2)(f) – Offer to gift riverbed to the Crown

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(f) – Advance significant Government policy or strategy

More informationKen Oh
Kenton Chambers
PO Box 7160
AUCKLAND