Decision Summary - Tourism Holdings Limited

Decision number	200810031
Application number	200810027
Date	1 April 2008
Offeror/applicant	Tourism Holdings Limited
Ultimate applicant beneficial ownership	57.9 percent -New Zealand, New Zealand Public 22.2 percent -United States of America, United States Public 14.7 percent -Australia, Australian Public 3.4 percent -Hong Kong, Hong Kong Public 1.8 percent -Various, Various overseas persons
Beneficial overseas ownership
- Asset current	0 percent
- Asset proposed	42.1 percent
- Share current	N/A
- Share proposed	N/A
Offeree(s)/seller(s)	Star Design Furniture Limited 100 percent - New Zealand
Business activities	Manufacturing -Machinery & Equipment
Details of land involved	0.9483 hectares of leasehold situated at 37 Kaimiro Street, Pukete, Hamilton being CT SA59D/817 (South Auckland Registry).
Regions involved	Waikato
Total consideration	$247,500
Consent sought	To acquire an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area by the regulator under section 37.
Rationale	The application has been approved as it met the criteria. The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987. Background to the Investment: Between 1995 and 1997 Tourism Holdings (Applicant) acquired 100% of the shares in Caravans International Munro Limited (now struck from the Companies Register and trading as CI Munro). The Applicant operates a caravan and motor home production venture from a facility in Otorohanga under the trading name CI Munro. The Investment: The Applicant seeks consent to accept an assignment of a leasehold interest in the Land from Star Design Furniture Limited (Lease). The current term of the Lease expires on 30 September 2011 however there is a right of renewal in favour of the Applicant for a further 6 year term. The Land adjoins land classed as a recreation environment on the Hamilton City Council District Plan rendering it sensitive land under Schedule 1, Part 1 of the Overseas Investment Act 2005 (Act). Rationale for the Investment: The Applicant seeks to expand its current operations through acquiring the Lease. It currently operates a caravan and motor home production venture from a facility in Otorohanga and intends to use the Land to expand its operations and increase efficiency and productivity. The expansion includes a significant increase in the size of the existing factory on the Land from 2,180m² to 6,580 m². The proposed overseas investment will or is likely to benefit New Zealand (or any part of it or group of New Zealanders) having regard to the following benefits: Overseas Investment Act 2005: s17(2)(a)(i) – the creation of new job opportunities in New Zealand or the retention of existing jobs in New Zealand that would or might otherwise be lost. s17(2)(a)(iii) – increased export receipts for New Zealand exporters. s17(2)(a)(iv) – Greater efficiency and productivity in the Applicant’s business. s17(2)(a)(v) – The introduction into New Zealand of additional investment for development purposes.
Contact	Jonathan Mitchell/Julie Nisbet Russell McVeagh P O Box 8 AUCKLAND

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