Applicant
Abacus Property Group
Case number(s)
200720031
Decision date
Type
Decision
Decision number200720031
Application number200710102
Date14 September 2007
Offeror/applicantAbacus Property Group
Ultimate applicant beneficial ownership100 percent - Australia, Australian Public
Beneficial overseas ownership 
- Asset current0 percent
- Asset proposed100 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)Reavers Lodge Limited of New Zealand
Business activitiesAccommodation - Hotel/Motel/Lodge
Details of land involved0.3945 hectares of freehold situated at 56 Hamilton Road, Queenstown being CTs OT15B/21 and 21647 (Otago Registry).
Regions involvedOtago
Total consideration$7,852,500
Consent soughtTo acquire 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.
Rationale

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.

Background and Outline of Proposed Development:
Abacus Property Group (Abacus) proposes to acquire the land as part of an acquisition of the Unitel Portfolio of properties in New Zealand. The Unitel Portfolio comprises hostel style accommodation in Auckland and Queenstown. Abacus will acquire the property through a special purpose wholly-owned trust, Abacus Unitel Trust. Abacus will also operate the accommodation business on the property. The property provides short term and long term accommodation facilities to residents and visitors in Queenstown.

Rationale for Proposed Development:
The acquisition of the Unitel Portfolio is part of Abacus' corporate strategy to acquire quality hotel and hospitality assets in Australasia. Abacus already owns other property in New Zealand, including the Chateau in the Park Hotel in Christchurch, and considers that the acquisition of the Unitel Portfolio will complement its existing New Zealand investments.

The proposal is likely to result in the following benefits:

  1. the Applicant is a key entity in the accommodation industry of Australia, a country with which New Zealand will likely benefit from having improved relations;
  2. the property is part of the Unitel Portfolio which contains five other properties. If consent is not granted to this acquisition, the purchases of the other properties within the Unitel Portfolio will not proceed.
ContactGreg Towers
Simpson Grierson
Private Bag 92518
AUCKLAND