ADIA’s Haumi selling Its Stake in Precinct Properties New Zealand

Abu Dhabi Investment Authority (ADIA), the sovereign wealth fund of Abu Dhabi, is selling its holding in NZX-listed landlord Precinct Properties New Zealand for $261 million, according to a stock exchange announcement.

Precinct, which owns the $1 billion Commercial Bay centre on Auckland’s waterfront, has issued stock exchange notices about the deal on Thursday, a day after ADIA’s Haumi Limited Partnership struck a deal with Jarden Partners to manage and underwrite the sale of 237 million shares, valued over $261 million, in Precinct Properties.

In its filing with New Zealand Exchange (NZX) on Thursday, Haumi said that it has entered into a block trade agreement with Jarden Partners Limited on 28 February 2024 under which Haumi appointed Jarden Partners to manage and underwrite the sale of 237,889,419 ordinary shares in each of Precinct Properties New Zealand Limited and PPIL, as stapled securities.

 “As a consequence of the agreement, there is a qualification on the power of Haumi to dispose of, or control the disposal of, such shares. Settlement of this sale is expected to occur on 4 March 2024,” Haumi said in the filing.

According to a report published in New Zealand Herald, ADIA owns 14.99% of the Precinct Properties and the exit looks well-timed on ADIA’s part, after New Zealand’s central bank left its official cash rate on hold at 5.5%, boosting confidence in the property market.

George Crawford, Precinct’s Deputy Chief Executive, said that this sale doesn’t indicate any concern with the New Zealand property markets, but overseas markets like North America have had significant falls in value and some global investors will be looking to acquire property there at lower prices.

“Haumi have no day-to-day involvement with Precinct’s operations and no other joint ventures, etc. The sale has been largely to our existing investors and will increase our free float market capitalisation, which should be a positive for buyer interest in Precinct,” Crawford said.

Strategic Disinvestment

According to media reports, the decision by ADIA to divest its stake in Precinct Properties aligns with a broader context of favourable market sentiment in New Zealand.

Precinct Properties, which owns significant assets like the Commercial Bay centre, has also reported a net profit after tax of $17.1 million for the half-year ending 31 December 2023, showcasing a strong recovery and indicating a promising outlook for investors.