Multi-managers back NZ$197m Lend Lease club

The multi-manager platforms of Aviva Investors, Henderson Global Investors, ING Real Estate and CBRE Investors are among those backing a pre-seeded investment fund led by Sydney-based Lend Lease.

Real estate and infrastructure investment and management firm Lend Lease has launched a private investment club, backed only by multi-manager investors, focusing on New Zealand shopping centres.

The Sydney-based firm announced the formation of the NZ197 million (€113 million; $161 million) Lend Lease Real Estate Partners New Zealand Fund last week, although PERE has since learned that among those backing it with NZ$115 million in equity are the multi-manager platforms of Aviva Investors, Henderson Global Investors, ING Real Estate and CBRE Investors. 

One PERE source commented on the rarity of an investment venture backed only by multi-manager platforms: “I’ve not come across a situation like this before where all the third party capital was raised from multi-manager platforms only,” he said.

Lend Lease also has co-invested in the vehicle, which was pre-seeded with four Lend Lease shopping centres, originally acquired in October 2010 as part of a consortium investment into assets of the ING Retail Property Fund for approximately NZ$197 million. The sales from the ING fund were among a number of exits by the Dutch financial group of its real estate investment management business.

The portfolio of shopping centres includes three Dress-Smart outlet centres located in Auckland, Christchurch and Wellington and the Meridian Mall, which is the largest shopping centre in the central business district of Dunedin. While their sales are conditional on various approvals and conditions, it is expected to complete next month.

Steve MaCann, group chief executive officer of Lend Lease, described the sale as demonstrative of the firm’s ability to “facilitate investment solutions through its wholesale investment management platform” while providing “direct access to institutional capital. In addition, the transaction allows investors to gain exposure to a well-established portfolio of retail assets in New Zealand,” he said.