British interests have permission to buy South Auckland land where New Zealand's biggest new men's jail will be built.
In the latest Overseas Investment Office decisions, permission was granted for the property deal at 20 Hautu Drive, Manukau.
Because the assets were worth more than $100 million and the land is deemed sensitive, the British entities needed special New Zealand Government approval.
The planned prison will be owned and operated by SecureFuture Wiri, 40 per cent owned by Britain's Serco Group with InfraRed Infrastructure III Partnership, 30 per cent owned by Britain's John Laing Investments and 30 per cent owned by New Zealand's Accident Compensation Corporation.
Serco operates Mt Eden prison, and has been told to improve after failing nearly half of its targets in its first nine months in charge.