Foreigners holding a residence class visa must be ‘ordinarily resident’ in New Zealand to avoid being caught as an ‘overseas person’ when it comes to buying rural land in excess of five hectares. West Drury Holding, part-owned by Yin Zhufeng, paid a negotiated fine of $125,000 for breaches of the Overseas Investment Act.
In 2017, West Drury Holding Ltd purchased 23.3 hectares of rural land in south Auckland for $9.2 million. Mr Yin held a 39 per cent shareholding in West Drury. At the time of the purchase he was living overseas, but held immigration status as a New Zealand resident. He was unaware that the Overseas Investment Act set out special rules for foreigners holding a New Zealand resident visa but living offshore. Government consent is need for purchases of rural land in excess of five hectares. The fact Mr Yin, who was an ‘overseas person,’ owned more than 25 per cent of West Drury meant that West Drury was also an ‘overseas person.’
The High Court was told Mr Yin and West Drury ‘fessed up when made aware of the rules. They co-operated with Land Information and the Overseas Investment Office. The High Court affirmed a negotiated $125,000 penalty.
Land Information v. West Drury Holdings Ltd – High Court (31.03.21)
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