Canada Pension Plan Investment Board (CPPIB) has agreed to acquire a 50 percent stake in a portfolio of office and retail properties in New Zealand from the Public Sector Pension Investment Board (PSP Investments). The interest is valued at about $545 million, with an equity investment of about $216 million. PSP Investments, which bought the assets in 2014, will continue to hold the remaining 50 percent interest. The properties, located primarily in Auckland and Wellington, are managed by AMP Capital.
Canada Pension Plan Investment Board Signs Agreement to Acquire 50% Interest in Office and Retail Portfolio in New Zealand
TORONTO, ONTARIO–(Marketwired – Dec. 12, 2016) – Canada Pension Plan Investment Board (CPPIB) announced today that it has signed an agreement to acquire a 50% interest in a diversified portfolio of prime office and retail properties in New Zealand from the Public Sector Pension Investment Board (PSP Investments). The 50% interest is valued at NZ$580 million (C$545 million) with an equity investment of NZ$230 million (C$216 million) subject to customary closing adjustments. PSP Investments will continue to hold the remaining 50% interest. The portfolio will continue to be managed by AMP Capital, an existing partner of CPPIB in Australia.
The portfolio comprises a mix of 13 well-located office properties and high-quality shopping centres totalling approximately 268,000 square metres (2.9 million square feet). Located primarily in Auckland and Wellington, the properties are situated within the central business districts and growing metropolitan markets.
“This is a rare opportunity to acquire a diversified portfolio that includes top-tier office and retail properties in New Zealand, a market with continuing population and tourism growth,” said Jimmy Phua, Managing Director, Head of Real Estate Investments – Asia, CPPIB. “With this acquisition, we are able to gain a meaningful presence in the New Zealand commercial real estate market, partnering alongside PSP Investments, who is a like-minded, long-term partner and extending our relationship with AMP Capital.”
The transaction is expected to close following customary closing conditions and regulatory approvals.
At September 30, 2016, CPPIB’s investments in global real estate totalled C$38.4 billion.
About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 19 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At September 30, 2016, the CPP Fund totalled C$300.5 billion. For more information about CPPIB, please visit www.cppib.com or follow us on LinkedIn or Twitter.
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