Overseas investment decision for case 202100563 - 576 GSR Development Limited

The Applicant is part of the global DIALOG Group which has been operating in New Zealand since 2011 through DIALOG Fitzroy Limited. The Applicant is creating a new modular construction division to install prefabricated residential dwelling modules in New Zealand.

We consider the Investment is likely to:
•    meet one of the increased housing outcomes - being the construction of approximately 20 new residential dwellings on the Land (to replace two existing residential dwellings) through its inclusion within a two stage residential development which will result in a minimum of 130 new apartments;
•    meet the on-sale outcome - which means that after completing the development the Applicant must on-sell all interests in the Land (by the end of 2027 at the latest);
•    meet the non-occupation outcome - which means the Applicant and certain related persons must not occupy the Land for residential purposes.

A retrospective consent was required because the Applicant is an overseas person under the Act and a related entity entered into the sale and purchase agreement without making the agreement conditional on consent under the Act before nominating the Applicant as purchaser.

The Applicant satisfied the Overseas Investment Office (OIO) that the breach was inadvertent and that it did not realise that the land was sensitive land under the Act. As soon as the Applicant realised consent was required, it contacted the OIO to remedy the situation. It also postponed settlement until receiving a decision on its consent and has paid an administrative penalty imposed under the Act.