Applicant
Cornerstone Infrastructure Group
Case number(s)
201810017
Decision date
Type
Decision

Decision
 
 
Consent granted
Section 12(a) Overseas Investment Act 2005
Section 13(1)(c) Overseas Investment Act 2005
Decision makerOverseas Investment Office

Decision date		31 August 2018

Investment		An overseas investment in sensitive land, being the Applicant's acquisition of a leasehold interest in up to 60 hectares of land at Settlers Road, Waikeria.

The rental payment for the lease will be paid upfront by the Applicant and it exceeds $100 million, this is an investment in significant business assets. In addition, the Applicant will cover costs of the investment in the construction, operation and maintenance of the prison facility.

Lease payment		Between $500,000,000 - $800,000,000

Applicant		Cornerstone Infrastructure Group
Pacific Partnerships Pty Limited, Australian Public (40%)
Public Infrastructure Partners III LP and Public Infrastructure Partners II LP, New Zealand (60%)

Leasor		The Crown
New Zealand (100%)

Background

The Applicant sought consent to acquire a leasehold interest in up to 60 hectares of land at Waikeria prison, for the purpose of extending the existing prison facility on the land. The Applicant has advised the total land area is likely to be approximately 41 hectares.

The Applicant was selected as the preferred provider through procurement for a Public-Private Partnership (PPP), run by the Department of Corrections. The Department of Corrections is of the view that a PPP model for the build provides efficiency and financial flexibility. Cabinet approved a PPP model for the prison development in November 2016. In June 2018, cabinet approved the development of 600 additional bed at the facility (100 of which to be for a mental health unit).

The Applicant is approximately 60% owned by New Zealanders. Other likely benefits to New Zealand include:

  • Creation of new jobs sooner than if the investment was not to proceed at this time (this includes both, for the construction and maintenance of the prison as well as corrections jobs); and
  • Efficiency of Government with the Applicant being able to construct the facility sooner as well as providing financial flexibility for the Government.
The Applicant has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character. The Applicant has also demonstrated financial commitment to the investment.

More information		Anton Trixl
Anderson Lloyd
P O Box 399
Shortland Street
Auckland 1140