Overseas Investment Office probed failed $160m resort

Wednesday, 31 May 2017

One of the Spencerville Rd blocks of land near Christchurch which was destined to become a $160m golf resort.

The Overseas Investment Office said it had investigated the failure of a South Korean investor to develop a block of land at Spencervillenear Christchurch into a $160 million golf resort.

The land in two titles of 92 hectares and 64ha will be sold at mortgagee auctions in the next two months.

The OIO was aware that Christchurch Golf Resort (renamed Whisper Creek) had failed to deliver its 2009 investment commitment, communications officer Joanna Carr said.

Earlier explanations for delays in delivery included the Christchurch earthquakes and then obtaining interested investors.

**READ NORE:

* **Developer's $160 million Spencerville dream evaporates

* $160m golf resort development finally begins****

The OIO began to formally investigate the failure to develop the site in January this year.

'As it was apparent that the consent holder had not, and it now seemed unable to, deliver its committed investment, the OIO formally triggered the condition in the consent requiring disposal.

'The consent holder also advised us that one of its creditors was likely to trigger a mortgagee sale.

'The consent holder is required to update us on all steps of the sale process.

'More generally when we discover an investor has or will fail to deliver on their conditions, we have a range of tools available to us, including seeking court orders to require disposal of land.'

Young Hwan Na had been granted consent by the OIO to acquire 92ha at Lower Styx Road for $11.2m from Richards Farms in 2009, following earlier consent to buy the neighbouring 64ha at Spencerville Rd for $5m in 2004.

The acquisition of the Spencerville land was settled in 2004 but purchase of the larger block had not been settled.

At the time of granting the consents the OIO accepted 'substantial and identifiable benefit to New Zealand' satisfied by the creation of jobs, investment for development, and walking access.

The OIO said it will carry out enforcement by educating people, and monitoring through surveillance including site inspections.

'When we believe a breach of the Rules has occurred, we assess the breach against our enforcement strategy and criteria and consider the full range of enforcement tools available to us to take the most appropriate and proportional response in the circumstances.'

The OIO may take civil or criminal proceedings resulting in 12 months in prison or a fine of up to $300,000.