Overseas investment decision for case 200810047 - UCG Investments Limited

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:
UCG Investments Limited (the Applicant) and its wholly owned subsidiaries (the UCG Group) carry on the business of operating aged care facilities in New Zealand. The UCG Group maintains a strategy to acquire and improve the operational performance of these facilities. The UCG Group currently operates nine aged care facilities throughout New Zealand.

Outline of the Investment:
The Applicant proposes to purchase all of the shares in Melody Enterprises Limited (Melody). Melody owns the land and business of Rhapsody Resthome & Private Hospital (Rhapsody), located in New Plymouth.

Rationale for the Investment:
The Applicant's strategy is to acquire aged care facilities with a mix of rest home and hospital care beds in New Zealand. These facilities must meet the Applicant's acquisition criteria, in particular they must have scope for improvement in the short to medium term. The Applicant wishes to grow its business, by way of continued development and acquisition of aged care facilities throughout New Zealand.

The acquisition of the shares provides the Applicant with the opportunity to acquire an aged care facility in the Taranaki region. The Applicant intends to invest further capital to improve the operational performance of Rhapsody's facilities.

The proposed overseas investment is 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) - Creation of new job opportunities;
s17(2)(a)(iv) - Greater efficiency or productivity; and
s17(2)(a)(v) - Introduction into New Zealand of additional investment for development purposes.

Overseas Investment Regulations 2005:
r 28(e) - Previous investments; and
r 28(g) - Advance significant government policy or strategy.