Super Fund has eye on more property

Paul Costello

The $6.6 billion NZ Superannuation Fund aims to put 7 per cent of its money into property, lifting to 10 per cent after 2007.

The fund, expected to grow to $120 billion by 2025, released its June-year result on Tuesday.

Chief executive Paul Costello said the aim was to increase the weighting in property. The fund holds real estate assets worth $191.9 million:

* $78.6 million with AMP Capital Investors via its unlisted AMP Property Portfolio, which owns $565 million of real estate, including the Botany Town Centre and LynnMall Shopping Centre.

* $113.3 million in a global listed property fund managed by Vanguard Investments Australia.

* As part of its equities investments, the fund has $41.7 million in Fletcher Building, comprising 0.63 per cent of the total fund.

The fund's target of 7 per cent in real estate includes an allocation of up to 2 per cent for New Zealand unlisted property.

Costello said he aimed to have a quarter of the fund in alternative assets within two years, including forestry and infrastructure.