Overseas investment decision for case 200820022 - CSR Building Products (NZ) Limited

To acquire:

1. an interest in land which, either alone or together with any associated land, exceeds 0.2 hectares and adjoins the foreshore; 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 Applicant has business experience and acumen relevant to and is demonstrating financial commitment towards the investment. The Office is further satisfied that the persons who exercise control over the Applicant are of good character and not the kind of persons referred to in section 7(1) of the Immigration Act 1987.

Background to the Investment:
The Applicant wishes to purchase Ross Roofing Limited ('Ross Roofing'), a New Zealand company in the business of roofing installation, manufacturing roof tiles and selling and distributing bricks. Ross Roofing operates its business from land owned by its associate, Ross Properties Limited ('Ross Properties'). Accordingly, when the Applicant purchases the business of Ross Roofing, it wishes to lease the land from Ross Properties on which the business currently operates. In addition, as part of the lease, Ross Properties has agreed to grant the Applicant an option to purchase the land.

Outline of the Investment:
The Applicant is initially acquiring a leasehold interest in the land with an option to acquire the freehold interest within 5 years of obtaining consent.

Rationale for the Investment:
Leasing and purchasing the land will allow the Applicant to:

1. complete its purchase of Ross Roofing;
2. continue the roofing business currently undertaken on the land; and
3. extend the Applicant's roofing business in New Zealand.

The proposed overseas investment will, or is likely to, benefit New Zealand (or any part of it or group of New Zealanders) having regard to the following benefits:

Overseas Investment Act 2005:
s17(2)(a)(i) - retention of jobs.
s17(2)(a)(iii) - increased efficiencies.

Overseas Investment Regulations 2005:
r28(e) - previous investments.
r28(g) - enhancing the ongoing viability of other previous investments undertaken by the Applicant.