The state-owned Super Fund is investing in three hotels in Auckland and Christchurch to make the most of tourism growth.
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 and worth $300 million.
"This partnership will give the New Zealand Super Fund exposure to the fast-growing tourism sector, diversify our investment portfolio and help support the industry's strategic objectives," Super Fund's 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 is effectively providing finance for the hotels projects, which will be developed by the other parties.
They had created two joint ventures, one to own hotels and the other to manage hotels and identify future opportunities.