Waikato Business News | April 1, 2024

4 APRIL 2024
ADVERTORIAL
New Zealand’s investor
immigration policy
is not for the faint
hearted!
Chamber
expands south
The South Waikato celebrated two events in quick
succession last month as the Waikato chamber and
prominent women called in.
Over the years New Zealand
has had a wide range of
immigration policies to
attract migrant investors.
Some were successful, and some not,
with policies often to the forefront of
political leanings as to whether such
migrants should be enabled to “buy”
their New Zealand residence.
The previous investor policy ran
successfully for over a decade before
closing in July 2022. During this
time, it attracted over $12 billion
of investment into New Zealand.
Investors had the option of investing
$10 million for 3 years, or $3 million
for 4 years. There were incentives
for investors who invested in active
investments (eg; the $3 million
could be reduced to $2.5 million) but
generally most investments were
made, understandably, in lower risk
managed funds and bonds.
The previous Labour Government
introduced the current Active Investor
Plus (AIP) policy in September 2022
saying – “we want to encourage
active investment into New Zealand,
which generates more high-skilled
jobs and economic growth compared
to passive investment”.
It is fair to say the AIP is a highly
complex policy. Applicants must
nominally invest $15 million but
the actual investment amount
is determined by the weightings
given to the different acceptable
investment options. For example,
investment in Direct Investments
has a 3 x weighting, meaning only $5
million investment is required, while
an investment in Managed Funds
has a 2 x weighting. Investment in
NZ listed shares is still available but
has a 1 x weighting and a maximum
investment of $7.5 million. The
full investment amount must be
transferred within the first six months
of approval, and the amount to be
invested in acceptable investments
must attain 50% within 18 months,
and 100% within 36 months with
the full investment term being 48
months from the date of the initial
investment. Pending full investment,
the residual funds are held in Holding
Investments such as bank deposits
and Government Bonds. There is an
English language requirement, and
the applicant must spend a minimum
of 117 days in New Zealand during the
4 year investment term.
Acceptable Direct Investments and
Managed Funds are determined solely
by New Zealand Trade and Enterprise
who assess and approve applications
from providers based on particular
“benefit” criteria. However, NZTE
does not undertake due diligence
on these investments meaning
there is significant onus, and risk, on
individual investors to undertake their
own research. Acceptable investment
options have been limited to date,
but investment managers are now
developing more bespoke products
that better align with both the policy,
and investor risk appetite.
To date 47 AIP applications
have been made although 5 were
subsequently withdrawn. Of the
remaining 42 applications, 19 have
been successful, and 12 have been
approved but have yet to complete
their initial investment – while 11
remain under process. The main
source countries are USA and Hong
Kong, followed by Germany, UK
and China, and around half of the
investments made to date have been
into Direct Investments.
New policies always take time
to become understood, and to
gain traction in the market, but
it is apparent, given the success
of the previous investor policy,
that the AIP is facing headwinds
and some changes to simplify the
policy settings, and provide more
mainstream investment options (eg:
infrastructure bonds?) are needed.
With the Australian Investor
Programme (BIIP) effectively closed,
New Zealand is well positioned
to benefit from migrant investors
looking to relocate down-under. The
AIP is our only investor visa option
currently and requires significant
professional guidance to navigate its
complexity – it is definitely not for the
faint hearted!
Pictured from left at the Tokoroa event were Rob Finlayson (Waikato Chamber) Company X founder
David Hallett, Gareth van der Heyden of Better Eggs, Swift’s Amanda Hema, Te Pukenga executive
director Huia Haeata and LM4 group chief Tjay Asiata.
Waikato Chamber
of Commerce has
put its lens on the
South Waikato.
Chief executive Don
Good said in collaboration
with the South Waikato
Investment Fund Trust
(Swift) “our intention is to
initiate activities through a
proposed Waikato Chamber
membership that will add
value to businesses in South
Waikato through advocacy
and lobbying, networking
events, social media activity
to raise brand awareness, and
connections with businesses
in the wider Waikato region”.
Business leaders travelled
to Tokoroa last month for an
event hosted by the chamber
and supported by Swift and
Wintec/Toi Ohomai.
Speakers included
David Hallett, co-founder
of software innovator
Company-X, Tjay Asiata,
Group chief executive of
Pasifika-owned LM4 Group
and Better Eggs chief Gareth
van der Heyden.
Good said the
establishment of
many more innovative
businesses, in the areas
of forestry, engineering,
home construction, social
services and the education
in Tokoroa and Putāruru
created a demand for
better connections with
regional, national and global
companies.
Swift chief Amanda Hema
said her organisation and
the Waikato Chamber were
complementary with Swift
focusing more on local
capability development
and the chamber being
able to provide regional,
national and international
connections.
Messages from
Wahine toa
www.pathwaysnz.com
Level 2
586 Victoria Street
Hamilton 3204
0508PATHWAYS
enquiries@pathwaysnz.com
Level 3
50 Manners Street
Wellington 6011
Lisa Tamati was among the speakers for International Women’s Day.
Tokoroa-born entrepreneur Anna Mowbray,
who co-founded multi-billion-dollar toy
manufacturer Zuru inspired senior students
as part of International Women's Day.
Mowbray was joined by other successful
women from various backgrounds including
Taranaki based ultra distance runner Lisa
Tamati who spoke to 150 Year 12 and 13
women from South Waikato schools at the
Tokoroa Event Centre.
Māori and Cook Island producer and
director Lanita Ririnui, executive director
of Ngā Aho Whakaari Māori In Screen -
an organisation that advocates for Māori
representation in the screen industry - was
the opening speaker.
The event is co-funded by Swift – the
South Waikato Investment Fund Trust
- which is a community-owned economic
development fund dedicated to the growth
and development of business in South
Waikato.