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GIC makes maiden foray into New Zealand's real estate

Monday, November 3, 2014 - 10:23
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Singapore's sovereign wealth fund GIC has embarked on its first real estate investment in New Zealand by tying up with Goodman Property Trust (GMT) to co-invest in Auckland's rapidly developing Viaduct Quarter.

SINGAPORE'S sovereign wealth fund GIC has embarked on its first real estate investment in New Zealand by tying up 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, will initially own a portfolio of assets worth NZ$313 million (S$312.6 million) but has a mandate to grow to NZ$500 million over time, said GMT's manager Goodman (NZ) Ltd and GIC in a joint statement.

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.

GMT identified the Viaduct Quarter as a strategic investment location over eight years ago and acquired the Air New Zealand building and a 50 per cent interest in Viaduct Corporate Centre in 2006.

These initial investments have since extended and this new partnership will continue the commercial focus, allowing GMT the capacity to expand its investment in the area without the requirement for any significant new funding, said Goodman chief executive John Dakin.

"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," said Goh Kok Huat, president of GIC Real Estate.

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