Not for release or distribution in the US
AMP Capital has welcomed another North American pension fund investor, Canada Pension Plan Investment Board (CPPIB), as a 50 per cent investor into its NZ$1.1 billion New Zealand property portfolio.
CPPIB is partnering with current owner, Canadian pension investment manager Public Sector Pension Investment Board (PSP Investments), in the 13-asset portfolio that spans the commercial office and retail sectors in New Zealand.
The deal underlines institutional investor confidence in the New Zealand economy and property market and positions AMP Capital to take advantage of growth opportunities both within the existing portfolio as well as through acquisitions.
AMP Capital Head of Real Estate Funds Management Chris Judd said: “We are pleased to welcome another leading global investor into our diversified property portfolio. This is CPPIB’s first investment into New Zealand, taking the opportunity to invest in a quality diversified property portfolio that is well placed to continue to benefit from strong New Zealand economic fundamentals. Investors continue to be attracted to the stability of the domestic property market, which is supported by a range of government and private capital initiatives along with strong population growth.
“By introducing another investor into the portfolio, our current investor, PSP Investments, has a strong and likeminded partner. With both investors’ support, we can look forward to further improving investment returns as the portfolio participates in redevelopment and further acquisitions in the office and retail sectors in the near future.”
The New Zealand property portfolio is well diversified by sector, tenant type and geographical spread across the country and includes large retail assets such as Botany Town Centre (60,000sqm) and Manukau Supa Centre (40,000sqm) in Auckland as well as the 13-level office building St Pauls Square (13,860sqm) in Wellington, currently undertaking a $38m refurbishment with a new 15-year lease to the New Zealand Government commencing on completion.
The deal is subject to Overseas Investment Office approval. Macquarie Capital assisted the vendors in the transaction.
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This article has been prepared to provide general information and does not constitute 'financial advice' for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, 'AMP') make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors.