The New Zealand Superannuation Fund will take a 29.69% share of the $1 billion proceeds from the sale of the AMP Property Portfolio assets to a Canadian pension fund.
Matt Whineray, chief investment officer for the Guardians of New Zealand Superannuation, says the sale took advantage of favourable market conditions.
“As a long-term investor, the NZ Super Fund has a greater ability than many investors to choose when to realise its investments. The opportunity to sell the portfolio to a single buyer was an attractive one.”
“We are always looking to optimise the mix of investments in the fund with a view to maximising long-term returns. The sale proceeds will be invested in predominantly growth-oriented domestic and international investment opportunities.”
The NZ Super Fund has more than $3.5 billion invested in New Zealand, including more than $1 billion in the local share market. The fund’s domestic investments include significant holdings in Kaingaroa Timberlands, Z Energy, Metlifecare, Datacom and a $150 million portfolio of rural farmland investments.
The $26 billion New Zealand Superannuation Fund invests globally in order to help pre-fund New Zealanders’ future retirement entitlements.
The Fund is managed by a Crown entity, the Guardians of New Zealand Superannuation. Since inception in September 2003 the Fund has returned 9.74% p.a. after costs and before tax.
AMP Capital will continue to provide management services for the portfolio, which includes commercial office, industrial, retail and development properties across New Zealand.
The properties include large retail assets such as the 60,000-square metre Botany Town Centre and the 40,000-square metre Manukau Supa Centre as well as the 13-level PricewaterhouseCoopers Tower and adjoining 12,600-square metre Capital on the Quay retail facility in Wellington.
Macquarie Capital and PwC assisted the vendors in the sale.
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Chris Hutching
Thu, 10 Jul 2014
Thu, 10 Jul 2014
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NZ Super Fund benefits from $1b property sale
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