NZ Super Fund buys Formosa Golf Course (NZ)

The $45 billion NZ Super Fund and a big property group have bought the Formosa Golf Course in Beachlands, east Auckland.

The Super Fund and investors associated with Russell Group have announced the purchase of 250 hectares of land on the coast, consisting of 170.5ha of the Formosa Golf Club land, bought from Chinese investors, as well as a property of 80 hectares at 620 Whitford-Maraetai Road, owned by Pipers Limited Partnership, an associate of Russell Property Group.

Russell Property Group managing director Brett Russell said many housing and development schemes had been proposed for the land over several years but the partnership would be starting with a clean sheet and working with the Auckland Council, the local community and other stakeholders on a high-quality masterplan for the area.

The partnership NZ Super and Russell Group and associates have formed is Beachlands South LP, which would be a separate venture to the limited partnership, NZ Hotel Holdings Asset LP, established last year by NZ Super and Russell Group to acquire hotels.

NZ Super Fund’s head of direct investments Will Goodwin said the new venture provided the fund with exposure to an asset class that it had been evaluating and exploring for some time.

“This investment creates a high-quality landholding that we will look to add value to overtime, ” Goodwin said.

NZ Super Fund is a global investment fund established by the New Zealand Government to help pre-fund the future cost of universal superannuation.

“We are a long-term investor and this acquisition signals our confidence in Auckland’s future growth and commitment to the region. In time we will engage with the community and Auckland Council about what kind of high-quality masterplan and associated infrastructure improvement could work for the area,” Goodwin said.

Russell said the partnership had enabled the consolidation of a strategic waterfront site in Auckland that allowed for a considered, long-term plan for the benefit of the Beachlands area and Auckland as a whole.

Russell Property Group would manage the land and continue to operate the Formosa Golf Club for the foreseeable future while the partnership considered future options. About 10,000 people lived in Beachlands and Maraetai on the Pohutakawa Coast, about 40 minutes drive from Auckland’s CBD.

Russell said the partnership would takeover the Formosa Golf Course at the end of April.

SOURCE: Stuff