Goodman Property Trust, the country’s largest listed property investor by market capitalisation, has entered into a joint venture with Singapore’s GIC to co-invest in its Auckland Viaduct Quarter development.
The Auckland-based investor will retain a 51 per cent stake in the portfolio valued at $313 million, and marks the Singapore-based sovereign wealth fund’s first real estate investment in New Zealand, Goodman (NZ), the trust’s manager, said in a statement.
The partnership expects the portfolio grow to $500m over time.
GIC is a global investment firm with over $US100 billion ($NZ125b) assets under management.
Goodman has been looking for a joint venture partner to build its Viaduct Corporate Centre, on Auckland’s waterfront, having bought the Air New Zealand building and a 50 per cent interest in the corporate centre in 2006.
The development grew when Goodman bought the new Fonterra building, which it is developing with Fletcher Building.
“The introduction of a like-minded partner gives Goodman the capacity to expand its investment in the Viaduct Quarter, enhancing the overall portfolio without the requirement for any significant new funding” said Goodman chief executive John Dakin.
The deal is pending approval from the Overseas Investment Office and certain approvals from the freehold land owner of the Air NZ and Fonterra buildings.
By Suze Metherell