Overseas investment decision for case 202000447 - Apex One Limited

Consent granted retrospectively

An overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in approximately 0.0813 hectares of land at 37 Erima Avenue, Point England, Auckland.

Apex One Limited

Wei Shen, China, People's Republic of (70%)

Erima Ave Development Limited

To meet the increased housing test, the Applicant proposes to remove the existing dwelling on the land and construct seven new residential dwellings.

We consider the Investment is likely to:

• meet 1 or more of the increased housing outcomes, being an increase in the number of residential dwellings constructed on the residential land;
• meet the on-sale outcome, which means that after completing the development the Applicant must on-sell all interests in the residential land; and
• meet the non-occupation outcome, which means the Applicant and certain related persons must not occupy the land.

A retrospective consent was required because the Applicant is an overseas person under the Act as 70% of its shares are owned by an overseas person.

Ms Deng, who is a New Zealander, and a director and shareholder of the Applicant, entered into the sale and purchase agreement for the land with an intention to nominate Apex One Limited as the purchaser without making the agreement conditional on consent under the Act.

The Applicant satisfied the Overseas Investment Office (OIO) that the breach was inadvertent. Ms Deng did not realise that, as a New Zealander, she was required to seek OIO consent for the purchase through a company which is an overseas person.

As soon as receiving legal advice that OIO consent was required, Ms Deng promptly contacted the OIO to remedy the situation.  She also postponed settlement until receiving a decision on her consent application and has paid an administrative penalty imposed under the Act.  

Alan Lear

Barrister

PO Box 3705

Auckland 1140

$15,000