By Craig Nelson - 4 Mar 2016
Recent Overseas Investment Office
(OIO) approvals show that making
donations to local schools can help overseas investors obtain
consent to invest in New Zealand.
Overseas investors wanting to invest in "Sensitive Land" in New
Zealand must satisfy the OIO that their investment will result in
specific benefits. And that benefit can include donations to
schools or other charitable organisations.
Generally, a committed investor looking to buy sensitive land
which is used for a business purpose will obtain consent, provided
they submit a quality application. This is because a committed
investor has scope to demonstrate that economic benefits will arise
from their proposed business initiatives. Examples of benefits
might include employing more staff or exporting more goods.
However, obtaining consent to invest in residential properties can
be more challenging, because there is less scope for demonstrating
economic benefits.
With 21 different benefit factors available under the law (some
economic factors and some non-economic factors) there is plenty of
scope for creativity in OIO applications. These recent OIO
decisions serve as a useful reminder that non-economic benefits can
be crucial to obtaining approval.
In our experience, a committed and creative investor looking to
add value and working with experienced legal advisors should be
confident in securing OIO consent.
Our team has extensive experience in advising overseas clients
on their investments in New Zealand, whether in the context of
share investments, business asset investments or land investments.
We have prepared and submitted many successful OIO applications for
a range of clients across a broad range of industries, including
forestry, viticulture, financial services and manufacturing.
If you are an overseas investor planning to invest in New
Zealand, or if you are a vendor planning to sell to overseas
investors, contact our specialists for advice: Craig Nelson
(Commercial) or Melissa Clark (Property).