An overseas investor that purchased a property without Overseas Investment Office consent must pay almost $540,000 following a penalty judgment released by the High Court on 8 June 2020, says Land Information New Zealand.
In September 2016, the overseas investor Chor Ltd (as trustee of Chor Trust) entered an agreement to purchase 64 Derbyshire Lane in Karaka, Auckland.
The shareholders of Chor Ltd, Mr Bingyan Zhou and Mrs Xirong Zhou, first acquired the property in 2013 for $2.550 million. They later sold the property to Chor Ltd (as trustee of Chor Trust) for $3.2 million.
The Overseas Investment says the purchase was brought to their attention via an anonymous tip-off.
“The property has since been sold – with Overseas Investment Office approval – to an unrelated third party. Chor Ltd must now pay the net quantifiable gain from the sale as a penalty to the Crown,” says Vanessa Horne, Group Manager of the OIO.
“This is an amount of $539,914.47, plus $15,000 towards the Overseas Investment Office’s costs.”