| Decision | Consent granted Section 12(b) Overseas Investment Act 2005 |
|---|---|
| Decision Maker | Overseas Investment Office |
| Decision Date | 28 April 2020 |
| Pathway | Sensitive land – benefit to New Zealand |
| Investment | An overseas investment in sensitive land, being the issue of shares in Augusta Capital Limited (Augusta) which owns or controls a freehold interest in 19.305 hectares of land located in various locations throughout New Zealand, being management rights in respect of certain properties and a 25% interest in a partnership that is party to a development agreement in relation to a site in Queenstown. |
| Applicant | Augusta Capital Limited Rockridge Investment Trust, New Zealand (17.22%) Kawaroa Trustees Limited, New Zealand (6.06%) Other New Zealand Investors (53.59%) Various Australian Investors (18.43%) Various Overseas Persons (4.7%) |
| Background | Augusta is one of New Zealand’s largest property funds management specialists and owns and manages 74 properties across the office, retail and industrial sectors throughout New Zealand and Australia. It was incorporated in New Zealand and is listed on the NZX. Augusta has experienced a significant drop in actual and forecasted revenue due to the economic climate resulting from the global COVID-19 situation. In response to this, Augusta intends to issue shares to raise capital with the aim of improving its financial position (Capital Raise). Augusta expects to raise up to (approximately) $45 million through this Capital Raise. The benefits to New Zealand that are likely to arise from the Capital Raise include job retention and continued majority New Zealand ownership. We note that Augusta has previously made high dollar-value investments in New Zealand since its incorporation in 2001. Not granting consent would be likely to adversely affect New Zealand’s image overseas as it would be inconsistent with measures introduced by other New Zealand regulators to assist businesses in the face of the economic impacts of COVID-19. |
| More information | Tim Tubman Chapman Tripp PO Box 2206 Auckland 1140 |