Ongoing Viability of Other Investments
Ongoing viability of other investments is a factor under section 28(g) of the Overseas Investment Regulations 2005 used in assessing an overseas investment's benefit to New Zealand. This factor recognises that some investments may not otherwise meet the threshold in their own right, but nonetheless support or enhance an earlier investment by the applicant.
Examples include:
- acquiring land to provide a buffer zone for a factory or a mine, or to resolve a resource management dispute with neighbours that would detrimentally affect the carrying on of the investment
- buying a neighbouring property onto which the original business may be extended, and
- purchasing a supplier of the original business in order to ensure certainty of supply of raw materials.
Report
If this factor applies the OIO requires a report detailing how the investment will support or enhance an earlier investment.
