The asking price of the 38ha Motukawaiti Island, marketed by international brokers Vladi Private Islands, is $12 million.
The asking price of the 38ha Motukawaiti Island, marketed by international brokers Vladi Private Islands, is $12 million.
A controversial slice of prime Kiwi paradise is on the market despite an ongoing investigation into its previous sale.
The 38ha Motukawaiti Island - in the Cavalli Islands group off Northland's Matauri Bay - is owned by Chinese investors and is being marketed by international brokers Vladi Private Islands. Theasking price is $12 million.
The 18-page international prospectus proudly states: "This exclusive private island offers everything from spectacular sea and reef views to fishing, diving, kayaking and island exploration."
Photos show a sprawling resort-style designer home with pool and spa at the water's edge. But what the glossy brochures don't mention is the five-year investigation into the last sale that went through without Overseas Investment Office permission.
The ownership could also be the subject of a future Treaty of Waitangi claim. The island was purchased in 2010 by St Morris NZ. It was previously owned by Motukawaiti Island Trustee Company.
According to the Companies Office, St Morris NZ's sole shareholder is Auckland-based Wenning Han. However, last year the mortgage holder, Jun Zhang, applied to put St Morris NZ into liquidation, saying it owed him $16 million.
The court threw the application out but ownership of the island was transferred to Han's former business partner, Zhang, in August 2013.
A resort-style designer home is included in the Motukawaiti sale.
David Viviers of the OIO said the issue was complex and involved a number of individuals and organisations. "The OIO has sought, and continues to seek, specific information and documentation from various parties," he said.
He could not say when the investigation would be completed. He did say the island could still be legally on-sold but if it sold to an overseas buyer consent under the Overseas Investment Act would be required.
Matauri Bay local and former MP Dover Samuels was angry and couldn't believe the OIO investigation had taken so long. He said his hapu, Ngati Kura, set up a Maori trust, Mahimahi E5, nearly 20 years ago and were able to buy the island back after it was sold to a Pakeha farmer in the early 1900s.
But Samuels said the Maori Land Court ordered the trust to sell the island, deeming the purchase illegal because it was not within the parameters of the trust.
"It was sold as a result of an order of the Maori Land Court. We should have told them to go to hell. We should have taken it to the court of appeal," Samuels said. "It was crazy. There was huge regret for us selling it. But there was a direction from the judge for us to sell it."
Samuels said the island could well be subject to a Treaty claim.
"It is a significant island for us and we own the other islands surrounding it."
Ngati Kura elder Nau Epiha said the sale of the island was like selling off a body part.
"Motukawaiti is the mother island. It is of huge importance to our people for food as well as spiritually and mentally."
