Canada Pension Plan Investment Board (CPPIB) is taking a 50% interest in a portfolio of prime office and retail properties in New Zealand.
The Public Sector Pension Investment Board (PSP Investments) sold the stake, which is valued at NZD580m (CAD545m). CPPIB said it is investing NZD230m of equity.
The 268,000sqm portfolio is managed by AMP Capital and includes 13 offices and shopping centres in central Auckland and Wellington.
“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, CPPIB’s managing director and head of real estate investments in Asia.
“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.”
PSP Investments bought the portfolio in 2014 for NZD1bn.