Overseas investment decision for case 200810061 - Five Star Developments Limited | Toitū Te Whenua

Applicant: Five Star Developments Limited
Case number(s): 200810061
Decision date: 26 Jun 2008
Type: Decision

Decision number	200810061
Application number	200810010
Date	26 June 2008
Offeror/applicant	Five Star Developments Limited
Ultimate applicant beneficial ownership	83.66 percent - United States of America, United States Public 16.34 percent - United States of America, Zell (Samuel)
Beneficial overseas ownership
- Asset current	N/A
- Asset proposed	N/A
- Share current	24.9 percent
- Share proposed	100 percent
Offeree(s)/seller(s)	Existing Shareholders of Sanctuary Residences Limited (other than Five Star Development Limited) 50 percent - New Zealand, Keene (Brian Paul) 25 percent - New Zealand, Cook (Susanna Catherine) 25 percent - New Zealand, Cook (Clifford James)
Business activities	Health & Community Services - Community Services
Details of land involved	10.3139 hectares of freehold comprising: 7.3317 hectares situated at 67, 79 & 95 Gills Road, Albany, Auckland being CTs 35041 and 304768 (North Auckland Registry); and 2.9822 hectares situated at 15, 17, 19, 27, 37 & 39 Natzka Road, Ostend, Anzac Bay, Waiheke Island, Auckland being CTs NA80D/517, NA124B/179, NA131B/145, NA131B/146, NA328/300 and NA124B/180 (North Auckland Registry).
Regions involved	Auckland
Total consideration	CONFIDENTIAL
Consent sought	To acquire rights and interests in up to 100 percent of the shares of Sanctuary Residences Limited.
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 to the Investment: Pursuant to an investment agreement dated 13 November 2007 (the 'Agreement'), the Applicant purchased 24.9% of Sanctuary Residences Limited ('Sanctuary'), a New Zealand company, via the issue of just under 600,000 new shares. Sanctuary is in the business of developing and operating luxury retirement homes. Via one of its subsidiaries, Sanctuary owns and operates the Waiheke Retirement Village on the Waiheke Land. Via a second subsidiary, Sanctuary owns the Albany Land, on which it eventually intends to build a retirement village. Outline of the investment: Pursuant to an option in the Agreement, the Applicant is acquiring a further 103,185 shares in Sanctuary, which will be new shares that the company issues to it. This will increase the Applicant's holding in Sanctuary to 28%. Subsequently, the Applicant intends to further increase its holding in Sanctuary, possibly to 100%. Rationale for the Investment: Purchasing the shares will allow Sanctuary to further develop the Waiheke Retirement Village. 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) -creation of new job opportunities. s17(2)(a)(iv) -enhanced domestic services as a result of increasing the supply of retirement accommodation in the Auckland region. s17(2)(a)(v) -introduction into New Zealand of additional investment for development purposes. Overseas Investment Regulations 2005 r28(e) -previous investments of benefit to New Zealand.
Contact	David Flacks Bell Gully P O Box 4199 AUCKLAND

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