Overseas investors have been ordered to sell a historic Waikato hotel after failing to follow through with an agreed redevelopment, the Overseas Investment Office has announced.
Kingstown Blue Spring Resort (KBSR) was given consent to purchase the Okoroire Hot Springs Hotel, near Tirau, in July 2014, OIO group manager Vanessa Horne said in a statement.
The hotel, which boasts "hot springs and several historic buildings", is one of the country's oldest. It opened its doors to the public in 1889, Ms Horne said.
The company required consent under the Overseas Investment Act to purchase the property due to its size, location of the land and its historic value. As part of the purchase, the hotel's investors "agreed to undertake work to improve the facility", including "protecting important heritage features and improving public access to the property".
"KBSR also said it would construct eight new hot pools and 22 new guest rooms, which would have increased the number of guests that could stay and was intended to make it more attractive for visitors and tourists," Ms Horne said. "This was one of the main reasons why the application was approved.
"The improvements would have provided benefits to the community, including the creation of jobs, walking access through the land to the Waihou River and the protection of a heritage site. KBSR was given four years to complete the work."
While the investors carried out some minor work, Overseas Investment Office officials became concerned over their ability to complete the work in the allotted time and comply with the agreed upon consent conditions.
The OIO met with the company to address their concerns, but little progress was made, she said. The OIO later decided they had breached the conditions of their consent, and ordered for the company to sell the property.
The company's application for a change in their consent conditions was denied.
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