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NZ Super benefits from $1b property sale

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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Comments and questions

Has anyone told Winston First?

Is selling these assets to an overseas buyer and the fact that NZ Super only have $3B invested in NZ ( out of $26B ) a great thing

I say not

give us a reason then

Well timed, get out at the top...

Well done Adrian...These results are way better than the ones we had with soccer.

The key to success is leave a little in for someone else.

Keep up the good work

Adrian.....A caveat to this good work of yours. You probably understand this already, that the more profits that stay in this country the better. Invest accordingly please.

Successive governments don't seem (or want) to understand this, and that if too many profits leave for offshore, you either have to print money or borrow it from offshore to make up the deficit. Both of these options are unsustainable.

The run for soft politics is almost over, with some hard decisions pending shortly. Politicians can't hide the truth forever. Remembering that once they have gone, its the rest of us taxpayers holding the baby.

Rationalisation is the next word no doubt !!

Accordingly, there will be a number of first rate professional property troops becoming consultants. And some interesting rent reviews !

...that growth orientated doesnt mean more investments into things like Moa - yikes!

Any chance of selling them Housing NZ as well!! be great if they would buy it and give the tax payers a break, as they might be far better land lords than the current one, and far less tolerant on rent arrears and planed damage by tenants, and they might even demand a far better outside upkeep on the properties.