AUSTRALIANSUPER has given a vote of confidence to the Queensland Investment Corporation (QIC) with a $500 million investment in the QIC Property Fund (QPF).
The funding boost will help QIC continue to acquire ‘dominant properties in population growth areas’.
Global real estate head Robert Carter points to regional shopping centres as a key focus.
“We are actively managing our portfolio and will continue to investigate opportunities in South East Queensland due to its strong economic conditions and population growth,” he says.
“Although we closely monitor short term fluctuations in the market, the QIC Property Fund is focused on developing and managing long-term strategies and does this in a very considered and disciplined manner.”
Carter welcomes the cornerstone investment by AustralianSuper, highlighting a strong alignment in strategies.
Work has recently been completed on QPF’s 10,000sqm new office building at 140 Elizabeth Street, which is leased to the Australian Tax Office (ATO).
“The commitment by AustralianSuper demonstrates a vote of confidence in QIC GRE’s (global real estate) management and growth strategy and recognises the quality of the QIC Property Fund and our investment objectives are closely aligned.”
Carter says it is too early to comment on specific plans or future improvements on the portfolio’s existing properties.
AustralianSuper chief investment officer Mark Delaney says the investment comes as the fund looks to reweigh its portfolio to include the lucrative local retail market.
“The opportunity to invest in a portfolio of assets of this quality is extremely rare and we are delighted to be able to increase our holdings in the sector, particularly in regional shopping centres, which have provided high relative returns with low volatility over the past 20 years,” he says.
AustralianSuper’s investment in QPF will make up 15.2 per cent of its total property portfolio, increasing its total fund exposure by 1.6 percentage points.