Overseas investment decision for case 200810030 - Tourism Holdings Limited

57.9 percent -New Zealand, New Zealand Public
22.2 percent -United States of America, United States Public
14.7 percent -Australia, Australian Public
3.4 percent -Hong Kong, Hong Kong Public
1.8 percent -Various, Various overseas persons

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 to the Investment:
Between 1995 and 1997 Tourism Holdings Limited (Applicant) acquired 100% of the shares in Caravans International Munro Limited (now struck from the Companies Register). The Applicant operates a caravan and motor home production venture from a facility in Otorohanga under the trading name CI Munro. At some point during 2007 after the leasehold interest was acquired the Applicant became an overseas person for the purposes of the Overseas Investment Act 2005 (Act).

The Investment:
Pursuant to a lease dated 16 March 2007 the Applicant acquired a leasehold interest in the Land for a term to be confirmed but greater than three years from the Hamilton City Council (Lease). The Land adjoins land classed as a recreation environment on the Hamilton City Council District Plan rendering it sensitive land under Schedule 1, Part 1 of the Act.
As the Applicant was not an overseas person at the time the leasehold interest was acquired, consent was not sought at the time of the acquisition. The Applicant now seeks consent for the acquisition of the Lease.

Rationale for the Investment:
The Applicant was seeking to expand its current operations when it acquired the leasehold interest. It currently operates a caravan and motor home production venture from a facility in Otorohanga and intends to use the leasehold interest to expand its operations and increase efficiency and productivity. The expansion includes a significant increase in the size of the existing factory on the Land from 2,180m² to 6,580 m².

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) – the creation of new job opportunities in New Zealand or the retention of existing jobs in New Zealand that would or might otherwise be lost.
s17(2)(a)(iii) – increased export receipts for New Zealand exporters.
s17(2)(a)(iv) – Greater efficiency and productivity in the Applicant’s business.
s17(2)(a)(v) – The introduction into New Zealand of additional investment for development purposes.