illegal property purchase

 

PHOTO: SIMON MAUDE / FAIRFAX NZ An illegal land purchase by foreigners had a sequel in the Auckland High Court.

The overseas owners of two rural properties at Warkworth, north of Auckland, have been ordered by the High Court to pay $2.95 million to the Crown after an investigation by the Overseas Investment Office (OIO).

They must sell the properties they bought in 2012 and 2014 without OIO consent, and pay penalties, costs and any gain made on the investment.

The properties included Kourawhero Lodge on the Matakana coast, and 185 Sandspit Rd, a large greenfield development block.

A company called IRL owned by Chinese businessmen Zhongliang Hong and Xueli Ke bought the Sandspit Rd property in January 2014 for $4.4m but after the OIO probe they were forced to sell it this year for $10m – without benefiting from the gain in price.

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