Overseas investment decision for case 201610023 - Guojia Yu, Nanjing Dadi Construction Group Co. Limited and NZ Rose Garden Development Limited

An overseas investment in sensitive land and significant business assets by Guojia Yu, Nanjing Dadi Construction Group Co., Limited (“Nanjing Dadi”) and NZ Rose Garden Development Limited (“NZ Rose Garden”) (together, the “Consent Holders”), being:

1. the acquisition of rights or interests by Guojia Yu and Nanjing Dadi in up to 75% of the shares of NZ Rose Garden which owns or controls a freehold interest in approximately 2 hectares of sensitive land (the “Land”) at 25 Don McKinnon Drive, Albany, Auckland (the “Share Purchase”); and
2. the establishment of a business in New Zealand by the Consent Holders (being the development of a mixed-use complex) where the total expenditure expected to be incurred in establishing that business exceeds $100 million (the “Development”),

(the “Investment”).

• $75 for the Share Purchase
• Approximately $407,500,000 for the Development

The Development is a multi-stage multi-use complex development taking place in Albany, Auckland. On completion, it is expected that there will be hundreds of apartment units (with approximately 200 apartment units being built in stage one of the Development), as well as supporting car parks, work/living units and retail units.

The Consent Holders are experienced in real estate development and sales, engineering construction, equipment installation, property management, building maintenance and contracting overseas projects. The Development will (among other benefits) result in the introduction of new investment capital into New Zealand, create a number of full time equivalent jobs over a period of at least 12 months and result in added market competition for the supply of housing in Auckland.

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) – Jobs
17(2)(a)(iv) – Added market competition
17(2)(a)(v) – Additional investment for development purposes

Overseas Investment Regulations 2005
28(f) – Advance significant Government policy or strategy
28(j) – Oversight and participation by New Zealanders