First geothermal power, now luxury resort for Wanying He

A Chinese investor is planning to build a six-star six resort in Manukau Harbour.

Wanying He of Rainbow Holdings has obtained Overseas Investment Office permission to acquire 90% of the shares in Lee Island Investments, which owns Pararekau and Kopuahingahinga (Lee) Islands covering 27ha.

Wanying He set up businesses in New Zealand initially in 2012 and appears to be expanding his empire, promising to invest hundreds of millions of dollars.

The OIO states the “cost of commencing business” at the planned resort at $130 million.

The consideration for the properties is $18.6 million for the freehold land and $22.9 million for the shares in Lee Island Investments, owned by Simon Deng-Li.

The vendor of the land is Karaka Harbourside Estate, owned by Ian and James Ross, who in 2012 embarked on the resource consent process for a gated community.

“Lee Island Investments (NZ) intends to construct a six star luxury resort on the land, which will include suites, restaurants, entertainment and business facilities on Pararekau Island. Kopuahingahinga Island will become a native reserve,” the OIO says in its decision giving the go ahead.

In 2013, Rainbow Holdings NZ received approval to acquire a freehold interest in approximately 39ha of land located at Poihipi and Tukairangi Rds, Taupo. 

Approval was also received for an overseas investment in significant business assets – the applicant's establishment of a business in New Zealand where the total expenditure expected to be incurred in establishing the business exceeds $100 million. 

The vendor was Fisher Finance and the price was $6 million for the land, with development costs exceeding $100 million to complete the development of the geothermal power plant. 

“The applicant intends to complete development of the power generating geothermal facility located on the land," the OIO said at the time.

Since 2012, Wanying He has set up Rainbow Holdings, HB Auspicious, HB International and Longlucky Universe International Investment (NZ).

According to the financial statements of Longlucky Universe, it is an investment company whose corporate parent is based in Hong Kong and whose ultimate parent company is Binxian Coal Mining.

Its main asset is a $28 million loan from the parent company of $28 million, unsecured and repayable on request.

Auditor KPMG also provides tax consultancy services to Longlucky.