The New Zealand Super Fund is investing in hotels to capitalise on New Zealand's tourism growth.
Though the fund won't reveal how much has been invested thus far, the phased investment will be channelled into a $300 million portfolio of hotels, including two in Auckland and one in Christchurch.
Auckland's Four Points by Sheraton hotel, the Adina Auckland Britomart hotel, and the BreakFree Hotel in Christchurch were established by Russell Group and Lockwood Property Group.
“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," NZ Super Fund head of direct investments Will Goodwin said.
"New Zealand needs additional hotel accommodation to support both growing domestic tourism and international arrivals. There are clear capacity constraints in this sector and we look forward to working with our partners to identify opportunities for future growth."
The Super Fund will effectively fund the hotel projects, which will be developed and managed by other parties.