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Funds traded in NZ Super RE sale disclosed

Partners Group acquired stakes in two Asian and three European-focused opportunistic vehicles from the $20bn sovereign wealth fund.

NZ Super Fund‘s recent real estate portfolio sale to Partners Group included stakes in Orion Capital Managers, Clearbell Capital, Rising Straits Capital and Gaw Capital Partners funds, the sovereign wealth fund said in a statement.

NZ Super came to market with a portfolio of around $500 million worth of real estate fund stakes at the end of last year, as sister publication PERE reported.

“While private equity real estate has been a profitable part of the Fund’s portfolio, these were relatively small investments and the move to sell them is consistent with our strategy to have fewer, deeper relationships with our investment managers,” Fiona Mackenzie, head of investments at NZ Super, said in the statement.

The sale price was not disclosed and none of the funds included New Zealand assets.

The disposal included stakes in the following funds:

  • Orion European Real Estate Fund III is a €1.3 billion vehicle managed by London-based Orion. The 2009-vintage fund has an opportunistic strategy and focuses on western Europe, according to PERE Research and Analytics.
  • Mountgrange Real Estate Opportunity Fund is a £300 million ($439 million; €392 million) 2007-vintage vehicle managed by London-based Clearbell. The fund is partially liquidated, according to PERE data. The sale also included a stake in Clearbell’s MoREOF (Parallel I) Unit Trust vehicle.
  • Red Fort India Real Estate Fund II is managed by Singapore and Delhi-based firm Rising Straits. The 2011-vintage $500 million fund focuses on opportunistic investments in India.
  • Gateway Capital Real Estate Fund III is a $420 million vehicle managed by Hong Kong-based Gaw Capital Partners. The 2010-vintage fund makes opportunistic investments in China.

Partners acquired the interests at a “meaningful discount” to par.

NZ Super had NZ$30 billion ($20 billion; €18 billion) in assets under management as of 31 March.