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.