The Canada Pension Plan Investment Board has taken a 50 per cent stake in AMP Capital’s New Zealand property portfolio.
The Canada Pension Plan and Investment Board (CPPIB) has partnered with the current portfolio owner, the Canada-based Public Sector Pension Investment Board, to become a 50 per cent investor in the NZ$1.1 billion (A$1.06 billion) portfolio, AMP Capital said.
According to AMP Capital head of real estate funds management Chris Judd, CPPIB’s investment demonstrated institutional investors’ confidence in New Zealand’s property market.
“This is CPPIB’s first investment into New Zealand, taking the opportunity to invest in a quality diversified property portfolio that is well placed to continue to benefit from strong New Zealand economic fundamentals,” he said.
“Investors continue to be attracted to the stability of the domestic property market, which is supported by a range of government and private capital initiatives along with strong population growth.”
Last week, AMP Capital announced its unlisted property funds had received over $1 billion in capital flows throughout 2016.
The deal is subject to approval from the New Zealand Overseas Investment Office.