Crown asset transfer process
This page contains information for tertiary education institutions (TEIs) wishing to obtain full legal title of Crown title assets under their management.
A TEI wishing to apply to transfer legal title of Crown assets into its ownership should read the Crown Asset Policy Guidelines (PDF, 118 Kb) and discuss its application with its Investment Manager before submitting an application.
The Crown asset transfer and disposal policy sets out a standard process so that when a TEI applies to the Crown to transfer a Crown-owned asset for which it has a current and ongoing educational need into its legal title, it knows how the application will be assessed, and how and when decisions will be made.
TEIs must complete the Crown Asset Transfer/Disposal form (Word, 107 Kb), sign it where indicated, and either print it and post it along with an accompanying cover letter to the address indicated on the form, or email it along with their asset verification spreadsheet to firstname.lastname@example.org.
The Crown Asset verification spreadsheet (Excel, 111 Kb) seeks information from institutions on the Crown-owned assets that they manage, asks for information concerning the ongoing educational use of each asset they manage, and asks whether they wish the asset to be transferred or disposed of. It also asks for details of land and building assets owned directly by TEIs.
TEIs wishing to transfer some Crown assets into their legal title and dispose of others they no longer require and retain the net proceeds should complete one application to cover both outcomes.
Key points and eligibility criteria
The following are key points related to the Crown title transfer process.
- The process only applies to Crown assets managed by TEIs since at least 1990.
- The policy allows TEIs to acquire full legal title of assets in Crown title that they manage and for which they have an ongoing educational need.
- The Minister of Finance and the Minister for Tertiary Education, Skills and Employment (joint Ministers) will assess applications based on advice received from officials. An assessment, undertaken by the TEC, will provide recommendations to joint Ministers and will be based on a review of the criteria set out in the document Crown Asset Policy Guidelines (PDF, 118 Kb). The transfer(s) will then be subject to the usual existing statutory and policy clearances.
- If there are over-riding reasons to retain the land in Crown title or where Ministers decline a transfer application, the Crown and the TEI will identify a satisfactory outcome on a case-by-case basis. If the TEI wishes, it will be issued with a long-term registered head lease for the asset at a nominal rental, which will give the TEI similar benefits to ownership.
- If a TEI has an asset transferred into its title and then sells it within five years, the TEI must pay 20% of the net proceeds of sale to the Crown.
- All external costs of transfers such as raising title for land will be met by TEIs (although the Ministry of Education will provide support as required). The TEI will also be invoiced for the costs of a LINZ accredited supplier, currently approximately $3,000 per title.
- A prerequisite for any transfer or disposal of Crown assets is that the TEI integrates the Government’s Capital Asset Management programme into its ongoing long-term strategic financial planning and reporting systems.
TEIs should contact Sharon Cottrell (Phone 04 462 4501) for more information regarding the transfer of Crown title assets.
22 July 2015
22 July 2015