New Zealand Super has entered into a project funding partnership with local developer Eke Panuku Development Auckland.
The sovereign fund will provide development funding, potentially including financing land acquisition costs, for which it will receive a return.
NZ Super may be a potential investor/acquirer of these assets post-development, for example as part of a build-to-rent investment portfolio.
NZ Super said the partnership was aimed at accelerating and improving the regeneration of Auckland’s town centres in Tāmaki Makaurau.
NZ Super Fund CEO Matt Whineray said: “We see a commercial opportunity in large-scale (more than NZ$100m, (€69.5m)), climate-friendly property investments and Eke Panuku is an ideal partner for us.
Auckland mayor Phil Goff said: “It means that Eke Panuku will be able to move faster and go further in the critical work it is doing to rejuvenate town centres across Auckland.
“There’s a huge amount of work needing to be done, but constraints in the funding council is able to make available to it in challenging financial times,” Goff said.
Paul Majurey, Eke Panuku chair, said: “Partnering with the NZ Super Fund will give us access to long-term Aotearoa-based capital, meaning we can adapt to market changes over time and widen the footprint of our work to transform Auckland’s town centres.”
Majurey said importantly, this new funding would mean his organisation could upscale and accelerate development plans.
In recent years NZ Super has built a substantial portfolio of New Zealand property investments including a series of partnerships with local developers including Russell Group, Classic Group and Ngāi Tahu Property.
To date, it has more than NZ$8bn invested in New Zealand and is looking to increase its exposure to domestic real estate and infrastructure.
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