Other Significant Investment
Other significant investment is a factor under section 28(d)of the Overseas Investment Regulations 2005 used in assessing an overseas investment's benefit to New Zealand. This factor recognises that granting the application for consent may result in the owner (i.e. vendor) of the relevant land undertaking other significant investment in New Zealand. For example, the vendor of the sensitive land may direct the purchase proceeds into another significant project. To be significant, the investment must be “noteworthy, of considerable amount, effect or importance, not insignificant or negligible”.
Report
If this factor applies the OIO requires a report detailing the extent to which the overseas investment will, or is likely to, result in other significant investment in New Zealand.
The report should detail:
- the vendor's proposed investment
- the timeframe within which the investment will take place
- any uncertainties or contingencies relating to the achievement of the investment
- why the investment is significant. In this regard, the quantum of the investment and the impact of it are matters that should be addressed, and
- the linkage between granting the application for consent and the owner of the relevant land undertaking significant investment in New Zealand.
