NZ Super Fund partners Classic Group for $216m housing project

Auckland, New Zealand. Photo by Dan Freeman on Unsplash

NZ Super Fund, New Zealand’s sovereign wealth fund, has partnered with local property developer Classic Group to use its scale and capital to tackle the country’s housing shortage and free up land.

The partnership is based on a NZ$300-million ($216 million) commitment, with NZ Super Fund having an 80% share in the Kaha Ake, the new land development company, and Classic owning the other 20%.

The Classic Group has 25 years’ experience in the property sector and includes Classic Developments, a land development company, and Classic Builders, one of New Zealand’s largest residential builders.

The first development, which will be Warkworth, North Auckland, is expected to deliver more than 500 lots for a new community to be developed. Over the coming years, the partnership expects to achieve a development pipeline of upwards of 3,000 sites for new homes, according to the announcement.

NZ Super Fund Manager, Direct Investments Hishaam Mirza says the investment is part of a broader strategy to increase the fund’s exposure to real estate.

“We believe our capital can help create a breakthrough moment for a sector weighed down with interconnected challenges of affordability, land supply, lack of scale, poor infrastructure, and compliance,” Mirza added.

In June this year, NZ Super Fund announced that it has managed to make a strong recovery this year after it saw the value of its assets under management drop by about $9.4 billion in a matter of weeks during the COVID-19 crisis in 2020.
From that low point last year, New Zealand’s sovereign wealth fund was up 60.2% at the end of May 2021, its fastest-ever period of growth, according to Matt Whineray, CEO of Guardians of New Zealand Superannuation. The fund has also returned 10.5% per annum since its establishment, beating its passive reference portfolio benchmark by 1.2% or NZ$9.9 billion.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.