There is no problem with the movement of investment; it just has to be well documented. The next investment needs to meet the basic requirements, i.e., commercial return, not for personal use or residential property, but it does not need to be in real estate. I would suggest that you do not create a big gap but identify the next investment and make the transfer seamless.
How can I move my investment from one project to another during the investment retaining period?
I initially invested in a small-scale commercial real estate project as part of my portfolio for the New Zealand investor 2 resident visa. The developer informed me recently that they would be able to return my investment capital next month but I still need to keep the funds invested for another 11 months. I am thinking about transferring the funds to another investment option. What should I do in order to achieve that? Must the new investment still be in real estate, or could I choose whatever qualified investment I want? What if there is a "gap" between withdrawing funds from the initial investment and redeploying it to the second one? Does my investment retaining period extend?
Do note that you may retain a residential real estate development as an acceptable investment after the development is complete, provided the residential propoerty is rented. If not, it will need to be sold and the proceeds further invested into acceptable investments, which can include further residential property development. You may move funds between investments as long as the sales proceeds are fully reinvested into further acceptable investments within a reasonable timeframe, which is considered to be around four weeks. The full sales proceeds, including capital gains, need to be further invested because this comprises the investment. However, any income derived from the investment can be withdrawn for the your own purposes. The overall investment period of four years does not change. The definition of "acceptable investments" remains the same as for the initial investments made for the purposes of obtaining the residence visa following the approval in principle.
You can switch between acceptable investments during the investment period. It does not have to be another investment in real estate. I would expect that any gap would affect the investment period, but I do personally not have any experience with that.