Hilton Queenstown's new owners say they are just financiers, so the deal does not need Overseas Investment Office approval.
Chinese billionaire Jiang Zhaobai was welcomed at a hotel cocktail function last week as the property's new owner.
The Otago Daily Times asked the offshore investment watchdog whether it had approved the sale from Hong Kong hedge fund Pacific Alliance Group to Mr Jiang's Shanghai Pengxin.
In an emailed statement, OIO manager Annalies McClure said her organisation only became aware of the situation on November 18, the day the story broke in the Otago Daily Times.
''The solicitors for Shanghai Pengxin have advised that the property has not changed hands, that Shanghai Pengxin has purchased loans secured against the property and that consent under the Overseas Investment Act was not required to acquire the loans.''
Ms McClure said the OIO was now verifying that claim.
Hilton Queenstown general manager Chris Ehmann said Hilton had a management contract and it was not privy to ownership details.
However, he said by acquiring the loans he considered Shanghai Pengxin the new owner.
Last week, the National Business Review reported any sale appeared to be complicated by legal action hanging over the uncompleted Kawarau Falls development, originally pushed by developer Nigel McKenna.
The development companies are being sued for $30 million by investors.
Chapman Tripp lawyer Mark Nicholson, who acts for Shanghai Pengxin, did not reply to a request for comment yesterday.
Under the Overseas Investment Act, consent is needed for an overseas person to acquire ''an estate or interest'' in sensitive land, or in the case of business investments of more than $100 million.
- David Williams
