Two islands in Auckland have been bought by Chinese interests in a $41.5 million deal for a luxury tourist resort.

The Overseas Investment Office has approved the sale of Pararekau Island and Kopuahingahinga or Lee Island near Papakura in the Manukau Harbour for $18.6m to Rainbow Holdings NZ.

Both of these islands are connected to mainland by a road.

As part of the transaction, Rainbow was also permitted to buy an 81 percent stake in Lee Island Investments for $22.95m, giving it 90 per control of the company.

Rainbow Holdings NZ is owned by Chinese resident Wanying He, who told the OIO there were plans for a six-star $130m luxury resort, including restaurants, entertainment and business facilities.

Kopuahingahinga Island would become a native reserve.

The vendor of the land was Karaka Harbourside Estate, which is connected to developers Ian and James Ross.

According to past media reports, the Ross' bought Pararekau Island 12 years ago. In 2012 they applied for Environment Court permission to build a gated community on the island, arguing that it was no longer economically viable to graze stock there.

The owner of the shares is Simon Deng-Li, also known as Yin Bing Deng-Li.

- Stuff

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Resort plans for two Auckland islands