Overseas investment decision for case 201410042 - Rainbow Holdings NZ Limited

• An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in an additional 81% of the shares of Lee Island Investments (NZ) Limited (giving the Applicant a total of 90%) which will own or control a freehold interest in approximately 27ha of land located at 147-149 Pararekau Road, Karaka, Auckland (Pararekau & Kopuahingahinga (Lee) Islands);
• An overseas investment in significant business assets, being the establishment by the relevant overseas person of a business in NZ which will be carried on for more than 90 days in any year and the total expenditure to be incurred, before commencing the business, in establishing that business will exceed $100 million.

• $18,600,000 for the freehold land
• $22,950,000 for the shares in Lee Island Investments (NZ) Limited

Lee Island Investments (NZ) Limited intends to construct a six star luxury resort on the land, which will include suites, restaurants, entertainment and business facilities on Pararekau Island. Kopuahingahinga Island will become a native reserve.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 of the Overseas Investment Act 2005. The 'benefit to New Zealand' criterion was satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(i) – Creation of Jobs
17(2)(a)(iv) – Added market competition & greater productivity
17(2)(a)(v) – Additional investment for development purposes

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(c) – Affect image, trade or international relations
28(e) – Previous investments
28(f) – Advance significant Government policy or strategy
28(i) – Economic interests
28(j) – Oversight and participation by New Zealanders