Overseas Investment Act 2005

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5 Certain units acquired and leased back

(1)

In this clause,—

TLtP participant means—

(a)

the person (A) that operates the TLtP premises or that will operate the TLtP premises after the TLtP premises are completed; or

(b)

any person involved in the development of the TLtP premises (the developer), provided that the developer has assigned its estate or interest in the land to A, or will assign it to A immediately after the TLtP premises are completed to the extent that it relates to the relevant unit

TLtP premises means premises used, or intended to be used, in the course of business principally for providing temporary lodging to the public.

(2)

A transaction does not require consent for the purposes of section 10(1)(a) to the extent that it will result in an overseas investment in sensitive land if—

(a)

the relevant land is residential (but not otherwise sensitive) land; and

(b)

the relevant land is being used, or is intended to be used,—

(i)

in the construction of TLtP premises that have 20 or more units, or to increase by 20 or more the number of units in TLtP premises; or

(ii)

for the operation of TLtP premises that have 20 or more units; and

(c)

the estate or interest in land described in section 12(1)(a) is—

(i)

an estate or interest in 1 (or more) of those units that is acquired by a person (a purchaser) and that is immediately subject to a lease-back to the TLtP participant; or

(ii)

a lease of 1 (or more) of those units by the purchaser to the TLtP participant (a lease-back).

(3)

The exemption is subject to the following conditions:

(a)

the lease-back must meet the following requirements at all times on and after the acquisition of the purchaser’s estate or interest:

(i)

the purchaser cannot occupy, reserve, or use the unit for more than 30 days in each year; and

(ii)

for the rest of the year, the unit must be managed and used for the general purposes of operating the TLtP premises; and

(b)

when the lease-back period ends, the purchaser must either, within 12 months of that period ending,—

(i)

grant to the TLtP participant a new lease-back of the unit that complies with the matters in paragraph (a); or

(ii)

dispose of its estate or interest in the unit; and

(c)

the purchaser must not occupy, reserve, or use the unit while it is not leased back to a TLtP participant.

Schedule 3 clause 5: replaced, on 5 July 2021, by section 35(2) of the Overseas Investment Amendment Act 2021 (2021 No 17).