Two Canadian public service pension funds have agreed to share ownership of a billion-dollar New Zealand property portfolio.
The Canada Pension Plan Investment Board is buying a half-share in the portfolio of office and retail properties owned by fellow Canadian investor PSP Investments for $580 million (£457.26 million).
The 13-building portfolio will continue to be managed by AMP Capital.
AMP portfolio manager Nick Cobham said the Canadian investors were attracted by New Zealand’s strong economic fundamentals, stable market and strong population growth.
“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 properties include the Botany Town Centre and Manukau Supa Centre in Auckland, and a 13-level office building in St Pauls Square near the Beehive in Wellington.
The deal still needed the approval of the Overseas Investment Office, but since the sale was between foreign companies, it was not likely to be declined.