Two of Canada’s largest pension fund managers have reached an agreement to co-own a portfolio of New Zealand real estate.

Under the deal, the Canada Pension Plan Investment Board (CPPIB) will buy a 50% stake in the portfolio from the Public Sector Pension (PSP) Investment Board, which will continue to own the other 50%.

CPPIB valued the deal at $545 million (NZ$580 million), subject to closing adjustments.

The 13 properties in the portfolio include a mix of office and retail space, primarily in Auckland and Wellington, N.Z.

CPPIB invests funds on behalf of the Canada Pension Plan. As of Sept. 30, the CPP Fund had $300.5 billion of assets including $38.4 billion in real estate.

PSP Investments manages retirement funds for the federal public service, Canadian Armed Forces, the Royal Canadian Mounted Police and the military Reserve Force. As of March 31, it had $116.8 billion of assets under management.