GIC makes first property investment in New Zealand via a joint venture; JV aims to have NZ$500 m of assets

GIC's latest investment, a commercial area known as the Viaduct Quarter in New Zealand's Auckland. -- PHOTO: GIC
GIC's latest investment, a commercial area known as the Viaduct Quarter in New Zealand's Auckland. -- PHOTO: GIC

GIC is taking a 49 per cent interest in a joint venture that is developing Auckland's Viaduct Quarter, marking GIC's first real estate investment in New Zealand.

The sovereign wealth fund is partnering with Goodman Property Trust (GMT) to co-invest in Auckland's rapidly developing Viaduct Quarter. The joint venture, which includes GMT's existing viaduct property interests, has a mandate to grow to NZ$500 million over time.

The Viaduct Quarter includes the Air New Zealand building. There is also an upcoming Fonterra building. The partnership will initially own a portfolio of assets valued at NZ$313 million. GIC will acquire a 49 per cent interest in these assets while GMT will retain a 51 per cent share. All future investments will be undertaken on the same basis.

The investment investment strategy of the new partnership will have a commercial focus as it builds a portfolio of high quality, campus style office properties, leased to major customers on long term leases.

Chairman of Goodman (NZ) Limited Keith Smith said: "The benefits of GMT's close relationship with Goodman Group, one of the world's largest integrated property groups, have facilitated the introduction of GIC into the New Zealand market and a broadening of GMT's investment strategy in the Viaduct".

President of GIC Real Estate Goh Kok Huat said: "As a long-term investor, GIC looks to establish strategic partnerships with leading market players. Goodman has strong asset management expertise and has a good pulse on the New Zealand market. We believe there will be good investment opportunities that allow the joint venture to grow further, particularly in the Viaduct Quarter."