Overseas investment decision for case 200910016 - CDL Hotels New Zealand Limited

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 62.46% of the shares in CDL Investments New Zealand Limited of CDL Investments New Zealand Limited which owns or controls:

• a freehold interest in 11.7755 hectares of land at various addresses in the Nelson region; and
• a freehold interest in 21.6182 hectares of land at various addresses in the Hastings District; and
• a freehold interest in 12.4351 hectares of land at various addresses in the Otago region; and
• a freehold interest in 119.4876 hectares of land at various addresses in the Canterbury region; and
• a freehold interest in 59.7415 hectares of land at various addresses in Hamilton City; and
• a freehold interest in 58.2795 hectares of land at various addresses in the Auckland region; and
• a freehold interest in 2.1337 hectares of land at various addresses in Tauranga City.

CDL Land New Zealand Limited, a wholly-owned subsidiary of CDL Investments Limited, owns sensitive land. CDL Land's core business is the acquisition and development of undeveloped land and undertakes residential property developments in Auckland, Hamilton, Tauranga, Hawkes Bay, Nelson, Canterbury and Queenstown.

Millennium & Copthorne Hotels New Zealand Limited (MCHNZ) seeks consent for its participation in the dividend reinvestment plan (the plan) for CDL Investments New Zealand Limited (CDL Investments). MCHNZ's participation in the plan between 1998 and 2005 resulted in MCHNZ increasing its ownership in CDL Investments from 57.35 percent in March 1998 to 62.46 in April 2005.

MCHNZ's participation in and proposed further participation in the plan reinforces MCHNZ's investment in the New Zealand property sector. MCHNZ's participation in the plan has enabled CDL Investments to continue to effectively finance and manage the various New Zealand property developments undertaken by CDL Land New Zealand Limited.

The overseas investment transaction has satisfied the criteria in Sections 14A and 14B of the Overseas Investment Act 1973. The 'national interest' criterion was satisfied by particular reference to the following factors:

Overseas Investment Act 1973
14A(2)(e) (95-02), 14E(d) (02-05) or 14(D)(2)(g) – Other matters.