This section contains information about the assessment of the likely benefit to New Zealand arising from the factor relating to the enhanced viability of other investments.
Whether the overseas investment will, or is likely to, enhance the ongoing viability of other overseas investments undertaken by the relevant overseas person (r28(g))?
Key elements of this factor
There are three key elements to this factor:
- The relevant overseas person must have undertaken other overseas investments.
- The overseas investment must enhance the ongoing viability of the other overseas investments.
- The enhancement in viability that is likely to result from the overseas investment must be additional to that which is likely to occur without the overseas investment.
Enhance the ongoing viability
This factor recognises that some overseas investments may not otherwise meet the threshold in their own right, but nonetheless support or enhance another overseas investment. Examples of overseas investments which may enhance the ongoing viability of a previous investment include:
- acquiring land to provide a buffer zone for a factory or a mine, or to resolve a resource management dispute with neighbours that would otherwise detrimentally affect the previous investment;
- buying a neighbouring property onto which the original business may be extended; and
- purchasing a supplier in order to ensure certainty of supply of raw materials to a previous overseas investment.
Other overseas investments
The other overseas investments must be a previous investments that required consent under the Overseas Investment Act and were undertaken by the relevant overseas person.
Making a claim
Provide the following information when making a claim under this factor:
- Other Overseas Investments:
A description of the relevant other overseas investments including case numbers and reference to any relevant post-consent reports.
The current viability of the relevant other overseas investments.
How the ongoing viability of the relevant other overseas investments will be enhanced by the overseas investment.
The viability of the relevant other overseas investments without the overseas investment.
The timeframe in which the enhanced viability is likely to occur.
Anything that may prevent the enhanced ongoing viability occurring.
An applicant should also include sufficient evidence to show that any enhancement in the ongoing viability of a previous investment is likely to occur.