The Overseas Investment Office has approved property developer Matvin Group Ltd’s sale of 1.5198ha on Library Lane in the Albany Village to a Chinese/NZ limited partnership, Library Lane Development LP.
Interests in the buyer are held by Yuntao Cai, (Guangzhou, NZ, 25% interest), Cho Kin Wong (NZ, 20%), Yamin Zhan (Guangzhou, 20%), Xikun Zhan, Guangzhou, 20%) & Hongyuan Chang (Guangzhou, 15%).
Library Lane Development LP has bought the site for $12.35 million.
The Overseas Investment Office made its decision on 12 February and released it yesterday.
The office said in its decision an agreement was entered into to acquire the land at Library Lane in mid-2013 and it was subsequently transferred to the limited partnership.
“Overseas persons later acquired interests in Library Lane Development LP, meaning that Library Lane Development LP in turn became an overseas person. Due to erroneous legal advice, consent under the Overseas Investment Act 2005 was not obtained prior to Library Lane Development LP becoming an overseas person.
“Library Lane Development LP later sought retrospective consent, and the Overseas Investment Office imposed an administrative penalty ($10,000) for the breach of the act.”
Library Lane Development LP is completing a multi-stage development on the land, which will result in about 300 apartments, some commercial units & associated carparks. The first of 3 stages has been completed, and earthworks have begun on the second stage.
The Overseas Investment Office said any overseas persons wanting to own units in the development would require consent.
The office concluded: “Library Lane Development LP’s investment has resulted, and is likely to result, in benefits to New Zealand. Library Lane Development LP has already developed stage 1 of the development and sold all of these units. They intend to continue with the remaining 2 stages of development, and will eventually divest of any interest in the development once it is complete.
Link: Library Lane
Attribution: Overseas Investment Office decision.