Why US investors paid $600k for a hostel rooftop in NZ – and fell foul of the law
Everest Infrastructure NZ, a firm under American ownership, recently committed $600,000 to secure a 35-year lease on the roof of a YMCA hostel located in Lower Hutt. The company intended to utilize the space to generate revenue from telecommunications providers seeking to install equipment. However, the transaction eventually ran into legal complications when the firm realized it had violated New Zealand regulations regarding foreign buyers.
Lease for Lower Hutt Hostel Roof
The agreement, finalized in 2024, granted Everest the right to collect current and future rental payments from internet and phone companies for the placement of antennae and towers. According to documents from the Overseas Investment Office (OIO), Everest paid an upfront sum of $255,000 for 16 square meters situated beneath an existing cell tower. The company paid an additional $345,000 to cover the remainder of the rooftop area. While Everest secured the lease, an arm of the YMCA charity still owns the Pilmuir Street building, and the company does not own the tower itself.
Everest represents part of a wave of offshore capital entering New Zealand to acquire or lease land situated beneath the national mobile network. Despite the high value of the deal, the US-owned fund discovered that its lease agreement constituted an interest in residential land without the necessary prior authorization. This oversight triggered a breach of the nation’s foreign investment laws.
Breach of Foreign Buyer Rules
Representatives from the YMCA informed the Herald that the charity played no part in the compliance failure. Everest eventually self-reported the incident to the OIO nearly eight months after the lease was signed. In documents released under the Official Information Act, OIO officials noted that the error could be somewhat understood. The regulators pointed out that a YMCA hostel accommodation does not represent a typical residential property, which likely contributed to the confusion regarding the rules.
Everest is a relatively new participant in a competitive market where foreign investment funds target passive tower assets. These assets are the physical structures and land that support the mobile and internet networks of New Zealand. This sector has seen significant activity recently, including a massive 2023 deal where the Canadian-backed firm Connexa paid $1 billion to acquire 1,124 passive towers from 2degrees.
Offshore Money and Passive Tower Assets
By late 2024, Connexa further expanded its footprint by purchasing Clearspan. According to a press release from its Canadian pension fund owners, that move established Connexa as the largest holder of land under mobile towers in New Zealand. Everest Infrastructure NZ continues to seek similar opportunities across the country, specifically targeting landowners who already have cell towers on their properties.
The company’s US website describes the firm as a premier purchaser of wireless infrastructure and rooftop lease buyouts. Everest has already successfully targeted several high-profile locations. Case studies on its website highlight agreements with the Mt Maunganui Golf Club, the Manawatu Golf Club, and the Carrington Estate winery and golf course located in the Far North.
Source: nzherald.co.nz · 2026-10-04