Overseas investment decision for case 201520064 - Global Academic Group Limited

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100% of the shares in Academic Colleges Group Limited (“ACG”) which owns or controls:

• a freehold interest in approximately 0.5765 hectares of land at 345 Queen Street, Auckland;
• a freehold interest in approximately 2.8853 hectares of land at 6 Waipareira Avenue, Henderson, Auckland;
• a freehold interest in approximately 14.5300 hectares of land at 50 Hayfield Way, Karaka, South Auckland; and
• a freehold interest in approximately 14.7634 hectares of land at 6 Keenan Road, Pyes Pa, Tauranga.

An overseas investment in significant business assets, as the total value of the consideration to be provided by the Applicant, and the value of the New Zealand assets of ACG and its 25% or more subsidiaries, is greater than $100m.

The Applicant is a special purpose company incorporated in New Zealand for the purpose of making the Investment.

Academic Colleges Group Limited (ACG) is a leading private provider of educational services throughout New Zealand and in Asia, offering programmes across a range of student levels, from early childhood to tertiary and careers education, as well as English language and university foundation courses.

The Applicant's strategy is to expand the size and profitability of the ACG group both in New Zealand and offshore, and has committed to investing capital for development purposes to achieve this. The Applicant plans to create new job opportunities in New Zealand, including in its international division, which focuses on promoting the growth of international student numbers at ACG. This is likely to increase export receipts through provision of education services to international students in New Zealand, consistent with the New Zealand Government's Leadership Statement for International Education. The Applicant has also committed to consult with the Department Of Conservation and Heritage New Zealand to ensure that its activities are consistent with the protection of protection of indigenous vegetation and fauna and heritage listed buildings present on certain of its school sites.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 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
17(2)(a)(i) – Jobs
17(2)(a)(iii) – Increased export receipts
17(2)(a)(v) – Additional investment for development purposes
17(2)(b) – Indigenous vegetation/fauna

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(e) – Previous investments
28(f) – Advance significant Government policy or strategy