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GIC signs $256m JV in New Zealand

Three days after announcing its first real estate investment in Turkey, Singapore’s sovereign wealth fund has set its sight on New Zealand. 

GIC Private Limited has announced its first real estate investment in New Zealand by forming a NZ$330 million ($256.54 million; €205.44 million) joint venture partnership with Goodman Property Trust (GMT), a New Zealand-based subsidiary of Goodman Group. The sovereign wealth fund will acquire a 49 percent stake in the venture, while GMT will retain the remaining 51 percent. The two parties will develop office properties in Viaduct Quarter, a commercial area in downtown Auckland.

“As a long-term investor, GIC looks to establish strategic partnerships with leading market players,” said Goh Kok Huat, president of GIC Real Estate. “Goodman has strong asset management expertise and 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.”

The current portfolio of assets under this partnership stand at NZ$330 million. However, the joint venture, which includes GMT’s existing property interests in the area, has a mandate to grow to NZ$500 million over time, GMT said in a statement released earlier today.

“The Viaduct Quarter is a proven investment location that presents exciting new opportunities with local government initiatives and private development transforming the former marine and industrial areas into a world-class, mixed-use waterfront precinct,” said John Dakin, chief executive of Goodman New Zealand.

With some $315 billion in assets under management, including approximately $22 billion in real estate, GIC has been actively investing across regions this year. It recently made its first corporate investment in a real estate company in Turkey, acquiring a 20 percent stake in Istanbul-based developer Ronesans Gayrimenkul Yatirim for $220 million. Also in October, the state fund acquired Tokyo’s landmark Pacific Century Place office complex for ¥170 million.