The Singaporean Government is expanding its New Zealand property holdings, taking a further stake in Auckland via a new office block yet to be built.
Listed landlord Goodman Property Trust has just announced that Fletcher Building has struck a deal to sell a new Wynyard Quarter building, 80 per cent leased to Datacom, to the Singaporeans and Goodman.
The purchaser is Wynyard Precinct Holdings - 49 per cent owned by the Singapore state's Government Investment Corporation and 51 per cent owned by listed landlord Goodman Property Trust.
The buyer will pay $86.2 million for the Datacom building.
GIC's founding chairman was former Singaporean Prime Minister Lee Kuan Yew who died this month.
The conditional Datacom deal sees the sale of the yet-to-be-built block on the corner of Gaunt and Daldy Streets behind the Caltex service station on Fanshawe St.
Singapore's government has spent more than $1.2 billion on New Zealand real estate in the last year, splurging on malls throughout the country as well as some of the flashest new office blocks, particularly around the rapidly evolving Wynyard Quarter on Auckland's waterfront.
The Singaporeans are coming here because they perceive New Zealand to be one of the best places internationally to invest.
GIC has holdings in around 40 countries and is one of the world's richest investment funds.
The Datacom building won't be finished until April 2017 and site works have only just begun.
Those close to the deal said the Singaporeans were attracted to the yields here as well as working closely with parties they trusted.
This latest deal follows others for GIC to buy other big holdings from Goodman.
GIC, with over US$100 billion of assets under management, bought 49 per cent of the Viaduct Quarter last year. That comprises Air New Zealand House, the new Fonterra development now being built by Fletcher Construction and the Viaduct Corporate Centre, containing the Vodafone, KPMG and Microsoft/HP buildings.
This latest Datacom deal follows on from those transactions.
The Singaporeans also now have big retail holdings.
In November 2014, Scentre Group - which owns and manages New Zealand's biggest shopping mall chain branded Westfield - announced a $2.1 billion joint venture with GIC for five shopping centres in New Zealand, three of which have developments planned