Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

NZ Super Fund to invest in $300M local hotel venture

By Victoria Young

July 15 (BusinessDesk) - New Zealand’s $42 billion Superannuation Fund will invest into a $300 million portfolio of hotels owned by local firms, as it eyes further exposure to tourism. The investment into the portfolio is phased and the fund won't say how much has been put in so far.

The deal for a hotel portfolio with Russell Group and Lockwood Property Group includes two Auckland hotels, one in Christchurch and agreement to acquire and develop more properties.

Russell Group is headed by NBR Rich Lister Brett Russell, better known for his construction firm Dominion Constructors. Dominion had worked on conversion and construction of the three hotels. Lockwood Property Group by is led by Crombie Lockwood co-founder Steve Lockwood.

“This partnership will give the NZ Super Fund exposure to New Zealand’s fast-growing tourism sector, diversify our investment portfolio and help support the industry’s strategic objectives," NZ Super Fund head of direct investments Will Goodwin said.

He noted capacity constraints in the hotel sector and the need for growth to support both domestic tourism and international arrivals.

Russell said in a statement he is happy that the assets remain locally owned.

While tourism spending increased by 7.7 percent in the past year to $39.1 billion, New Zealand is projected to have a significant shortfall in hotel rooms, with more than 4,500 extra beds needed by 2025. Auckland faces the biggest constraint with a requirement of up to 4,300 new hotel rooms, but only 2,500 are planned.

In April, NZ Super Fund said it would invest US$115 million in US data centres in order to capitalise on demand for digital infrastructure. It already had a 39% stake in local IT company Datacom.

The sovereign wealth fund is owned by the government to partially pre-fund the cost of national superannuation. It has returned 10.1 percent per annum since it began in 2003.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Super Fund/Canada Bid v NZTA: Tow Preferred Bidders For Auckland Light Rail

The two preferred delivery partners for Auckland light rail have been chosen and a final decision on who will build this transformational infrastructure will be made early next year, Minister of Transport Phil Twyford announced. More>>

ALSO:

9.3 Percent: Gender Pay Gap Unchanged Since 2017

“While it has remained flat since 2017, the gender pay gap has been trending down since the series began in 1998, when it was 16.2 percent,” labour market statistics manager Scott Ussher said. More>>

ALSO:

Ex-KPEX: Stuff Pulls Pin On Media Companies' Joint Ad-Buying Business

A four-way automated advertising collaboration between the country's largest media companies is being wound up after one of the four - Australian-owned Stuff - pulled the pin on its involvement as part of a strategic review of its operations ... More>>

Bus-iness: Transdev To Acquire More Auckland And Wellington Operations

Transdev Australasia today announced that it has agreed terms to acquire two bus operations in Auckland and Wellington, reaching agreement with Souter Investments to purchase Howick and Eastern Buses and Mana Coach Services. More>>

ALSO: