High Court orders overseas property developer to sell sensitive land in Albany
Monday, 15 July 2019
The High Court in Auckland has ordered an overseas property developer to sell 5 hectares of land bought without Overseas Investment Office approval.
BCH Investments bought properties at 79 to 95 Gills Rd in Albany for just under $13 million in 2013.
The company planned to develop the land into 117 residential sections for sale.
However, the Gills Rd land is classified as sensitive under the Overseas Investment Act as the properties sit next to a reserve.
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The company failed to gain approval for the purchase as is required under the act.
The Overseas Investment Office (OIO) discovered the breach in 2014.
The court has given BCH two years to sell the properties to protect contractors and people who had already bought the subdivided lots.
The company was also fined the maximum $300,000 and was ordered to pay costs totalling $288,000.
Justice Grant Powell said in his judgment that 'Given the size, scope and nature of the development proposed, BCH should have undertaken explicit enquiries as to its obligations under the act.'
OIO Land Information group manager Vanessa Horne said New Zealanders placed a high value on land and the office was there to make sure overseas investors followed the rules.
'This case shows the importance for investors to seek the right advice when making overseas investments. This includes choosing a suitably qualified lawyer and asking the right questions,' she said.
'The OIO has an important role in protecting our sensitive land, and we will continue to pursue cases where people have bought land illegally.'
Over the last two years, the OIO has become increasingly active in investigating breaches of the Overseas Investment Act.
In 2018, a report released by the auditor-general's office found that prior to 2016, monitoring was approached as an administrative task.
Since 2017, there has been a dedicated team of around eight people working on monitoring and enforcement of the law.