| Decision | Consent granted Section 12(a) Overseas Investment Act 2005 |
|---|---|
| Decision Maker | Overseas Investment Office (the OIO) |
| Decision Date | 12 February 2020 |
| Pathway(s) | Sensitive land – benefit to New Zealand |
| Investment | An overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in 1.5198 hectares of land at 18-36 Library Lane & 568 Albany Highway, Albany Village. |
| Consideration | $12,350,000 |
| Applicant | Library Lane Development LP Yuntao Cai, China, New Zealand(25%) Cho Kin Wong, New Zealand (20%) Yamin Zhan, China, People's Republic of (20%) Xikun Zhan, China, People's Republic of (20%) Hongyuan Chang, China, People's Republic of (15%) |
| Vendor | Matvin Group Limited (New Zealand 100%) |
| Background | Library Lane Development LP (LLLP) is a New Zealand limited partnership developing land in Auckland for a residential subdivision. In mid-2013, an agreement was entered into to acquire the land at Library Lane and subsequently, the land was transferred to LLLP. Overseas persons later acquired interests in LLLP, meaning that LLLP in turn became an overseas person. Due to erroneous legal advice, consent under the Overseas Investment Act 2005 (the Act) was not obtained prior to LLLP becoming an overseas person. LLLP later sought retrospective consent, and the OIO imposed an administrative penalty for the breach of the Act. LLLP’s investment has resulted, and is likely to result, in benefits to New Zealand. LLLP has already developed stage one of the development and sold all of these units. They intend to continue with the remaining two stages of development, and will eventually divest of any interest in the development once it is complete. LLLP is completing a multi-stage development on the land, which will result in approximately 300 residential apartments, some commercial units, and associated car parks. The first of three stages has been completed, and earthworks have begun on the second stage. Consent will be required for any overseas persons wanting to own units in the development. |
| More information | Emma Tonkin Hesketh Henry Private Bag 92093 AUCKLAND 1142 |
| Retrospective penalty | $10,000 |