Biggest property deal of year: $1.1b sale proposed

The Tower Centre at 45 Queen St is in the proposed $1.1 billion deal.

A $1.1 billion planned sale of many New Zealand properties could be this year's biggest if official consent is granted.

One Canadian entity wants to sell properties to another Canadian entity and the estate involved is a large group of commercial, retail and development properties spread throughout New Zealand.

Lawyers Russell McVeagh released a statement yesterday describing the proposed transaction.

"Public Sector Pension Investment Board of Canada (PSPIB) has agreed to sell 50 per cent of the shares in PSPIB its wholly owned subsidiary, Waiheke Inc, to Canada Pension Plan Investment Board. PSPIB Waiheke owns a portfolio of commercial and retail property assets in New Zealand with an estimated value of $1.1bn. The portfolio includes the Botany town centre and Manukau Supa Centre in Auckland, and the 13-floor St Paul's Square office building in Wellington which is currently undergoing a $38m refurbishment as part of a new 15-year lease with the Government," the statement said.

"PSPIB Waiheke Inc acquired the portfolio in 2014 from the APP property fund, which was managed by AMP Capital Investors (New Zealand) Limited in New Zealand. AMP Capital continues to manage the portfolio for PSPIB.

"Russell McVeagh's Property and Corporate Advisory teams led by partners Ed Crook and Dan Jones, with Senior Associates Steve Rendall and Lance Jones, advised PSPIB in conducting vendor due diligence and advising on and negotiating the terms of the sale and purchase agreement and related documentation. This included revisions to the investment management and advisory services agreement in place between the fund vehicle, PSPIB Waiheke Inc, and AMP Capital," the statement said.

Ed Crook, Russell McVeagh's property practice group chair said: "The transaction required the team to address a number of complex and inter-related issues, and to work in closely with AMP Capital, PSPIB's Canada-based deal team and Canadian counsel to complete the transaction. We acted for PSPIB on the acquisition of the portfolio in 2014, and have an in-depth knowledge of the portfolio, the capital structure and the contractual framework put in place for PSPIB, so we were well placed to take a lead role in the transaction."

The deal is subject to Overseas Investment Office approval.

Two years ago, the Herald reported the sale of many of these properties to the Canadians.

Properties in deal:

Retail:

• Botany Town Centre, Auckland
• Northwood Supa Centa, Christchurch
• Manukau Supa Centa, Auckland
• Centre City Shopping Centre, New Plymouth
• Nelson Junction, Nelson
• Half share in Bethlehem Town Centre, Tauranga

Office:

• Tower Centre, 45 Queen St, Auckland
• 51 Shortland St, Auckland
• 385 Queen St, Auckland
• 109 Featherston St, Wellington
• Freyberg House, Wellington
• PwC Tower (office) and Capital on the Quay (retail), Wellington
• St Paul's Square, Wellington

Development:

• Development land in Christchurch