Overseas investment decision for case 201620084 - Iraj and Nasser Barabi

An overseas investment in sensitive land, being the Applicant's acquisition of further rights or interests in up to 100% of the issued share capital in Lakes Marina Projects Limited which owns or controls:

• a leasehold interest in 0.7660 hectares of land at Super Lane, Frankton, Queenstown; and
• a leasehold interest in 6.9240 hectares of land at Part of Lake Wakatipu.

The Applicants each hold a 40% shareholding in Lakes Marina Projects Limited (LMP).

LMP was granted consent in April 2016 to acquire a leasehold interest in approximately 7.6900 hectares of land in Queenstown to develop a marina on Lake Wakatipu for the Queenstown Lakes District Council.

The proposed investment is an internal restructure, which will result in the Applicants increasing their shareholdings in LMP to allow completion of the marina development to occur.

Stage one of the marina development will include the development of 77 marina berths, 17 floating sheds, 4 buildings on land, a wave attenuator (breakwater), a fuelling station, and a carpark that will accommodate up to 136 vehicles.

The cost of the marina development has increased and the Applicants intend to fund the additional development costs.

The overseas investment transaction has satisfied the criteria in section 16 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/productivity
17(2)(e) – Walking access

Overseas Investment Regulations 2005
28(a) – Consequential benefits