Buy your own island
Previous sale of 37ha island with a luxury lodge led to OIO probe
The only privately owned island in Northland’s Cavalli Islands is for sale for $16 million after a controversial deal to sell it to overseas interests sparked an official investigation.
The previous sale of Motukawaiti Island, the southern most in the Cavalli group, 3km from Matauri Bay, was investigated by the Overseas Investment Office in 2010.
A five year inquiry found some evidence the purchase may have broken the law governing the sale of “sensitive” land to overseas buyers, but not enough to be sure of a successful prosecution.
Marketing of the property, also known as Step Island, comes as the new coalition Government proposes a clampdown on the sale of property to foreigners.
The island is marketed by Graham Wall Real Estate which says it is on three separate titles. Olly Wall said the
The island . . . could be a sanctuary for native species.
Department of Conservation spokesperson
agency listed the 37.01ha property about a month ago.
“There are two dwellings on the island. The luxury lodge is on the western side of the island but has been uninhabited for two years,” the agency says.
Wall said an Auckland-based lawyer had given instructions to his agency.
He could not disclose the identity of the solicitor or the seller, reported to have been Chinese.
A Department of Conservation spokesperson indicated regret that the island was in private hands.
“We are aware that Motukawaiti is up for sale by the Chinese owners and we support the Overseas Investment Office decision on the sale,” the spokesperson said this week.
“The island does have potential as a privately owned pest-free island which, if maintained and restored, could be a sanctuary for native species. DoC already manages a number of offshore pest-free islands along the Northland coast including the adjacent Motukawanui, the largest island in the Cavalli group and is not pursuing purchase of Motukawaiti,” the spokesperson said.
DoC also noted that former Maori Affairs Minister Dover Samuels had called for the island to be returned to the hapu at Matauri Bay, Ngati Kura.
Samuels urged the Government to buy the island and vest it as a reserve until Ngati Kura’s Treaty claims were considered.
The OIO began its investigation after learning that New Zealand business St Morris — the entity which bought the island in 2010 — had used funds borrowed from an overseas person to buy the island. That was Chinese businessman Jun Zhang, the OIO said.
The island was promoted as the Cavalli Island Spa Retreat, offering use of a 22m luxury boat and skipper “for cruising and dining”.
The property was touted as a place to “enjoy your exclusive private island experience with fishing, diving, kayaking, island exploring or being pampered in the island spa.”