Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Overseas Investors Required To Sell Twizel Properties

The owners of three properties in Twizel will have to sell-up after they failed to seek consent from the Overseas Investment Office (OIO).

Vanessa Horne, Group Manager for the OIO, says a group of overseas investors bought the three properties, which total 327 hectares, between 2014 and 2017.

“The buyers should have sought consent from the OIO as the land is considered sensitive under the Overseas Investment Act,” says Ms Horne. The land is sensitive because it is rural and each property is greater than five hectares.

“The OIO investigated the purchase of the land and found the investors bypassed our overseas investment rules due to incorrect legal advice. We recognise this was an inadvertent mistake on their part and in December 2018 the OIO reached a settlement agreement with the investors.”

The settlement agreement required the investors to dispose of two of the properties:

  • 61.4585 hectares of land at the Junction of State Highway 8 (Tekapo-Twizel Road) and State Highway 80; and
  • 246.1899 hectares of land at Tekapo-Twizel Highway.

In March 2019 - as part of their settlement agreement - the investors applied to the OIO for a retrospective consent to retain ownership of other land - 19 hectares of land at 4587 and 4589 State Highway 8, Tekapo-Twizel Road.

“The applicant bought the land in 2015 and did not start any development – it had proposed building an observatory, wedding chapel and subdividing 60 to 80 residential lots for holiday homes.

“On 8 January 2020, the OIO declined the application for a retrospective consent. We were not satisfied the benefit to New Zealand would be substantial and identifiable. The OIO had concerns about the applicant’s business plan, their ability to successfully implement the proposed developments, given the lack of progress, and their consideration of how the developments would be undertaken or operated in practice,” says Ms Horne.

This case shows the importance of overseas investors following the rules, getting good legal advice and making sure they get approval from the OIO, she says.

“The OIO will continue to take action against investors that don’t comply with their obligations under the Overseas Investment Act,” says Ms Horne.

 

Further information:

Each parcel of land is owned by a different company, but the shareholders involved in the three companies are linked. The parcels of land are:

  • 246.1899 hectares of land at Tekapo-Twizel Highway. It was owned by Twizel Development Limited before being sold to a third party in June 2019. No capital gain was made.
  • 61.4585 hectares of land at the junction of State Highway 8 (Tekapo-Twizel Road) and State Highway 80. It was owned by Pukaki Garden Limited. It is currently under offer.
  • 19 hectares of land at 4587 and 4589 State Highway 8, Tekapo-Twizel Road. It was owned by Lake Pukaki Development Limited. The OIO has declined a retrospective consent to retain ownership of this property. The owners must now dispose of it.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On What Leadership (And The Lack Of It) Looks Like

Leadership is an intangible quality, but most New Zealanders will be thanking their lucky stars for what’s being provided by PM Jacinda Ardern and Ministry of Health Director-General Ashley Bloomfield. On a daily basis, both have been clear and decisive about the rationale for the policies they’re pursuing and - by and large - they’re managing to re-assure the public, and yet prepare them gradually for the bad times and challenges to come...More>>

 


Police Commissioner: Christchurch Terrorist Pleads Guilty

Police acknowledge the guilty pleas in the Christchurch Mosque attacks prosecution that were entered in the Christchurch High Court today. The guilty pleas to 51 charges of murder, 40 charges of attempted murder and one charge of engaging in a terrorist ... More>>

ALSO:

Government: Nation Steps Up To COVID-19 Alert Level 2

New Zealand has been moved up to COVID-19 Alert Level 2, Reduce Contact, in an escalation of efforts to reduce the spread of the virus in New Zealand, Prime Minister Jacinda Ardern announced today... More>>

ALSO:

COVID-19: Business Response Package

Cabinet today approved the development of a Business Continuity Package to help support the economy through the disruption caused by COVID-19. “New Zealand is well-placed to respond to COVID-19. More>>

ALSO:


Transport: $54 billion Investment In Draft GPS 2021

The Draft Government Policy Statement (GPS) 2021 on land transport confirms that the Government will invest a record $54 billion in its balanced transport policy over the next decade. More>>

ALSO:

Gordon Campbell: On The Loss Of Abortion Safe Zones

No doubt, last night’s defeat of abortion law reform provisions that would have created safe zones around abortion clinics will be portrayed, by some, as a victory for free speech. It isn’t. It was a victory for bigotry and intimidation directed ... More>>

ALSO:

Gordon Campbell: On National's Regulation Crusade

Lets step back in time now, to simpler days and to simple-minded solutions. So…. if National gets elected, landlords will once again be able to evict tenants at will, raise rents anytime they like, and ignore the need to install a healthy standard of heating in the homes they put out to rent. This promised ‘bonfire of regulations’ is being done in the name of cutting red tape... More>>

ALSO:

SMC - Expert Reaction: PF2050 Strategy

DOC has released a strategy to reach Predator Free 2050, along with an action plan through to 2025. The predator-free goal focuses on three groups of mammals: possums, three species of rats, plus stoats, ferrets and weasels... More>>

ALSO:


Land, Air And Sea: Regions To Benefit From NZ Upgrade

Regional New Zealand will be a hive of activity in the coming months as the New Zealand Upgrade Programme delivers on its promise to modernise our infrastructure, prepare for climate change and help grow our economy. As part of the $12 billion ... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels