PHOTO: KFC. SUPPLIED
Restaurant Brands Properties Ltd Fined $30,000 for Breaching Foreign Investment Rules in Auckland Land Purchase
Restaurant Brands Properties Ltd (RBPL) has been fined $30,000 for failing to obtain necessary Overseas Investment Office (OIO) consent in a $2.65 million land deal in Auckland. The land, purchased for a KFC site, was considered sensitive under the Overseas Investment Act.
One of New Zealand’s top law firms, Meredith Connell, failed to provide guidance on the requirement for OIO consent when drafting the sale and purchase agreement.
Restaurant Brands Properties Ltd is 75 per cent Mexican-owned and should have sought Overseas Investment Office consent before purchasing the Māngere East land. Photo / Alex Burton
Key Points:
- RBPL purchased a 2-hectare site on Massey Rd, Māngere East, in March 2023.
- The company is 75% Mexican-owned and needed OIO consent for the residential land purchase.
- Meredith Connell did not advise RBPL on the need for consent, resulting in a breach of the Act.
Documents show that RBPL entered a sale and purchase agreement on March 10, 2023, to acquire the land for $2.65 million. The agreement was not conditional on obtaining OIO consent, which led to the breach.
RBPL self-reported the error before the contract’s settlement date and cooperated with the OIO investigation. The company has since implemented changes to its processes to ensure compliance with overseas investment rules.
The site on Massey Rd, Māngere East, was formerly a commercial boarding house. Photo / Alex Burton
Conclusion: RBPL was fined $30,000 and granted retrospective consent in November 2023. A KFC drive-through now operates on the site. Meredith Connell has declined to comment on the matter.
SOURCE: NZHERALD