Overseas investment decision for case 200720150 - Millennium & Copthorne Hotels New Zealand Limited

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 75.0% of the shares in 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 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 CDL Investments New Zealand Limited’s (CDL Investments) dividend reinvestment plan (the plan) and to acquire up to 75% of the shares of CDL Investments. MCHNZ's participation in the plan between 25 August 2005 and 30 June 2008 resulted in MCHNZ increasing its ownership in CDL Investments from 62.46 percent in March 2005 to 65.16 percent as at 30 June 2008 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 section 16 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Act 2005
28(e) – Previous investments
28(f) – Advance significant government policy or strategy

Gavin J Macdonald
Bell Gully (Auckland)
PO Box 4199
AUCKLAND 1140

Tama Potaka
Bell Gully (Auckland)
PO Box 4199
AUCKLAND 1140