Canadian Pension Plan board purchases $545M New Zealand property portfolio

The Canadian Pension Plan Investment Board joins the Public Sector Pension Investment Board in co-owning commercial real estate investment in N.Z.

Western Investor
December 12, 2016

Auckland thinkstock
The 13-property portfolio includes prime Auckland and Wellington office properties. — Thinkstock


Two Canadian pension fund managers now each have a $545-million stake in a commercial real estate portfolio based in New Zealand.

The Canadian Pension Plan Investment Board has purchased 50 per cent interest in 13 properties based in Auckland and Wellington, from fellow Canadian investment group, the Public Sector Pension Investment Board. PSP Investments will continue to own the remaining stake.

The portfolio features office and retail spaces, including what the CPP Investment Board considers, “high quality shopping centres.” The properties total approximately 2.9 million square feet.

AMP Capital out of Australia will manage the portfolio on behalf of Ontario-based CPP Investment Board and PSP Investments.

The CPP Investment Board’s recent acquisition adds to its $38.4 billion in real estate investment worldwide. PSP Investments holds 20.4 billion in real estate assets.

The companies have co-invested together before and both invest funds on behalf of Canadian retirement plans: CPP Investment Board on behalf of the Canadian Pension Plan and PSP Investments on behalf of public service pension plans, such as that of the Canadian Armed Forces.

"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,” Jimmy Phua, managing director and head of real estate investment in Asia for CPP Investment Board said in a release.

Tanya is a recent graduate of Langara College's journalism program and spent a summer freelancing for The Burnaby NOW and The Record, following a reporting internship with the publications. She joins Western Investor as an editorial assistant. Very much a millennial, she sees the irony in writing about real estate she will likely never be able to afford.
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