06/27/2019 | News release | Distributed by Public on 06/26/2019 21:15
27 June 2019
The Overseas Investment Office (OIO) has given a retrospective consent to New Land International Development Company to develop land in Auckland for housing.
Chinese-owned New Land bought 3.7 hectares of land at Albany Heights, north of Auckland, in February 2015 after receiving no legal advice to seek consent under the Overseas Investment Act. It subsequently reported the breach and the OIO imposed an administrative penalty of $10,000.
The penalty took into account the price paid for the land and the nature of and reasons for the retrospective consent. The total administrative penalty could not exceed $20,000.
Since New Land's breach occurred, the Overseas Investment Amendment Act 2018 came into force. The administrative penalty for a retrospective consent application now depends on the price paid for the investment, ranging from $20,000 for investments under $2 million to $40,000 for investments over $10 million.
New Land is expected to seek resource consent to develop the land into more sections than it is currently zoned for. Development of more sections will result in more intensive and efficient use of the land, and additional job opportunities and investment.
New Land is held 45 percent by interests in China, 45 percent by a shareholder from China but who is a New Zealand resident, and the remaining 10 percent stake is owned by a New Zealand permanent resident. The company is currently developing another significant Auckland residential development that has brought benefit to New Zealand.