NZ Super Fund books into accommodation
Monday, July 15th 2019, 9:44AM
The $42 billion NZ Super Fund is investing into a $300 million hotel portfolio established by the Russell Group and Lockwood Property Group.
The deal includes the Four Points by Sheraton and Adina Auckland Britomart in Auckland, the BreakFree Hotel in Christchurch, and an intention to acquire and develop additional sites.
NZ Super Fund’s Head of Direct Investments Will Goodwin says the fund had been considering opportunities to invest in New Zealand’s tourism sector.
“This partnership will give the NZ Super Fund exposure to New Zealand’s fast-growing tourism sector, diversify our investment portfolio and help support the industry’s strategic objectives."
Russell Group is headed by NBR Rich Lister Brett Russell, better known for his construction firm Dominion Constructors. Dominion had worked on conversion and construction of the three hotels. Lockwood Property Group by is led by Crombie Lockwood co-founder Steve Lockwood.
Tourism is New Zealand's largest export industry in terms of foreign exchange earnings and directly employs one in seven New Zealanders.
Despite this growth, New Zealand is projected to have a significant shortfall in hotel rooms, with more than 4,500 extra beds needed by 2025. Auckland faces the biggest constraint with a requirement of up to 4,300 new hotel rooms, but only 2,500 are projected to be built.
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