Queen City Law is acting on the acquisition of Republic ( a Queenstown hospitality group) by Redcape Hospitality in a transaction valued at over $40 million, which represents a significant injection of capital into one of New Zealand’s most important tourism centres. The transaction highlights how New Zealand’s Active Investor Plus (AIP) visa settings are channelling offshore capital into operating businesses that align with our broader economic strategy.

The stated objective of the Active Investor Plus category is set out as follows:

“The objective of the Active Investor Plus visa category is to increase the flow of foreign capital and attract skilled and experienced active investors into areas that align with Government’s economic strategy, by providing resident visas to those who wish to participate in New Zealand’s investment ecosystem and make a significant contribution to New Zealand's economy.”

This Queenstown transaction provides a practical example of these objectives in action. At a time when the hospitality and tourism sectors have faced sustained pressure, transactions of this nature provide a meaningful vote of confidence. They demonstrate how investment immigration-linked capital can support the revitalisation of established businesses, add value to going concerns, introduce international management capability, reflect economies of scale, and generate downstream economic activity in key regional centres.

Importantly, the Growth category under AIP does not permit investment into businesses whose model is based purely on passive rental income, such as standard office, retail, or residential property holdings. However, operating real estate, including tourism infrastructure, hospitality, food and beverage, marinas, aged care, and childcare, are permissible. This distinction is deliberate and reflects a policy intention to direct capital into enterprises that generate employment, operational activity, and sector development. In practice, this means encouraging investment into productive enterprises rather than passive property holdings, with a focus on long-term economic participation.

There are early indications that investment appetite remains strong in sectors aligned with these policy settings. In addition to hospitality, infrastructure, and tourism-related developments, specialised industries such as aerospace are attracting investment. Recent moves by the Government shutting down managed fund providers placing investment funds on term deposits with banks has been arrested as it is against the spirit of the Growth Category.

Imminent law changes relating to purchases of New Zealand homes over NZD $5M (or land and house packages) will positively influence AIP investor confidence. These changes are part of an ongoing broadening regulatory environment that continues to evolve and make the Kiwi proposition more attractive. For further information on this topic, please see our article on Key Updates to Overseas Investment.

Beyond this Queenstown transaction, we are seeing continued activity across a range of sectors that intersect with immigration-linked investment. This includes involvement in significant tourism infrastructure initiatives, major hotel and mixed-use developments, high-rise urban projects, and select technology and aerospace ventures. In some cases, philanthropic initiatives are also being explored by investors seeking to contribute more broadly to New Zealand communities which once again gels nicely with the objectives of the AIP program. From where we sit, these sorts of investments, coupled with the inter-generational consequences of attracting a wave of well-heeled entrepreneurs and investors to our shores, spell more dynamism, liquidity, depth and resilience for our economy across the motu and the timing is excellent given our economic doldrums and productivity problems.

Another client of the firm is currently investing around two hundred million dollars into a leading hotel in Queenstown, where there is also a direct nexus with business or investment immigration. Upon completion, we would expect it to be an architectural masterpiece. We are also involved in the planning stages of other significant development in this region, where Golden Visa funds may be able to unlock high quality development opportunities, possibly in the tourism and health sectors.

Ultimately, the success of the Active Investor Plus framework will be measured not simply by capital inflows, but by the quality and sustainability of that investment. Transactions such as the Queenstown acquisition suggest that the regime can facilitate meaningful economic participation when aligned with well-managed operating businesses. Any such acquisition contains inherent risk and is not for the fainthearted.

Invest NZ is starting to hit its burgeoning strides really wrapping around our investment ecosystem and making a difference. They have an impressive and powerful team with a lot of positive energy and should be congratulated for the work they do attracting investors to Aotearoa and promoting New Zealand’s investment options. Clearly the best demonstrable results are where the public and private sector are well aligned and play to each other's respective strengths. There will be more attraction events in Singapore and Hong Kong in April that we will promote and attend.

New Zealand remains an attractive destination for experienced investors seeking stable governance, transparent legal systems, and opportunities to participate in growing sectors. If structured and implemented effectively, immigration-linked investment has the potential to support regional development, strengthen core industries, and contribute to long-term and sustainable business activity.

Queen City Law is proud to be at the forefront of these transactions. Representing clients in acquisitions that deliver tangible economic benefits to New Zealand, while aligning with AIP objectives, is not only professionally rewarding but also reflects the firm’s longstanding commitment to supporting and nurturing sustainable economic growth across Aotearoa.

Final word goes to the managing director at MA who is spearheading this New Zealand based initiative, Enda Stankard (see earlier NZ Herald link):

“The Growth category, which is the most popular category, does not allow investment in companies whose business model is based on a pure property play. Offices, shopping centres, residential, where you collect rent, that’s not permitted, but operating real estate is. Things like hospitality, food and beverage, marinas, aged care, childcare, that is allowed.

The vast majority of them [AIP investors] want to contribute something to New Zealand and help the economy grow. We’ve gotten great reaction from investors when we talk them through it. It obviously helps that we’ve got a track record and expertise in the area.”

He also hinted at the possibility of further acquisitions, noting his preference to invest in sectors where they have expertise and in-house capabilities.

“We’re reviewing a couple [of potential acquisitions] at the moment, but we will look to diversify. This will be a diversified fund; it won’t just be a hospitality fund over time. I think you’ll see more investments like this coming.”

Please also refer to MA Financials article here.

Our online library contains useful documents for those undertaking commercial activity in our jurisdiction, including due diligence checklists. Without doubt, there will be useful information in the checklists that will assist investors and entrepreneurs considering New Zealand as an investment destination.

For further information about the Active Investor Plus category or business acquisitions and disposals in New Zealand, contact:
marcus@queencitylaw.co.nz
+64 27 487 7332