A property portfolio of 18 assets, held in the AMP Capital Property Portfolio (APP) and worth in excess of NZ$1 billion, has been sold to Public Sector Pension Investment Board (PSP Investments), a Canadian institutional investor, on behalf of exiting investors.

The deal, which is subject to Overseas Investment Office approval, enables APP’s existing investors to realise their long-term investment in the portfolio.

The transaction reinforces the current confidence in New Zealand’s economy and property market.

AMP Capital Property Portfolio General Manager Stephen Costley said: “This is a great result for all parties involved in the transaction. The vendors have realised their strategy to sell at a price that delivers value for investors, the purchaser is acquiring a quality, diversified property portfolio, AMP Capital retains its management of these assets and the transaction highlights the strength of the New Zealand economy and its status as an attractive investment destination.”

AMP Capital will continue to provide management services for the portfolio, which features 18 quality commercial office, industrial, retail and development properties.

The portfolio is well diversified by sector, tenant type and geographical spread across New Zealand 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 PricewaterhouseCoopers (PwC) Tower with adjoining retail facility Capital on the Quay in Wellington (12,600sqm).

“AMP Capital is committed to continuing to maximise the portfolio’s value and performance for the new investors,” said Mr Costley.

Macquarie Capital and PwC assisted the vendors in the transaction.