This section contains information about the assessment of the likely benefit to New Zealand arising from the factor relating to the owner of the land undertaking other significant investment.
Whether granting the application for consent will, or is likely to, result in the owner of the relevant land undertaking other significant investment in New Zealand (r28(d))?
Key elements of this factor
There are four key elements to this factor:
- The investment must be undertaken by the owner of the relevant land (usually this is the vendor).
- The investment must be significant.
- The investment must be in New Zealand.
- The investment that is likely to be undertaken as a result of the overseas investment must be additional to that which is likely to be undertaken without the overseas investment.
This factor recognises that granting the application for consent may result in the owner (this is usually the vendor) of the relevant land undertaking other significant investment in New Zealand. For example, the vendor may direct the purchase proceeds into another significant investment.
To be significant, the investment must be “noteworthy, of considerable amount, effect or importance, not insignificant or negligible”.
Possible investments that have not been fully considered or where no steps have been taken towards effecting will not meet the requirements of this factor.
Result of the overseas investment
The other significant investment by the owner of the relevant land must occur as a result of the overseas investment.
If a vendor of the relevant land has an alternative source of funds that will enable them to undertake the significant other investment even if the overseas investment does not proceed (such as where they intend to sell the relevant land to an alternative New Zealand purchaser) this factor is unlikely to be met.
Making a claim
Provide the following information when making a claim under this factor:
- Proposed investment:
A description of the significant investment likely to be undertaken by the owner of the land.
Where the significant investment is likely to occur.
Why the investment is significant (including the quantum of the investment and the impact of the investment).
- Causal connection:
How the other significant investment is linked to the granting the application for consent including whether it will occur without the overseas investment.
When the other significant investment is likely to occur.
Anything that may prevent the owner undertaking the other significant investment.
An applicant should include sufficient evidence to show that the other significant investment by the owner is likely to occur.