FINANCE: AustralianSuper has appointed Rockspring to execute its direct office and retail property investment strategy across continental Europe.
As European investment manger for the A$75bn (£41.5bn) Melbourne-based pension fund, Rockspring will have a mandate, part of AustralianSuper’s international programme, to “significantly grow” its global direct property investment portfolio.
Rockspring’s new mandate will focus on large, landmark office buildings – either standalone or part of larger mixed-use schemes – located in principal continental European markets, as well as dominant retail investments such as prime super-regional shopping centres across continental Europe.
AustralianSuper, Australia’s largest industry superannuation fund, currently owns circa A$6bn of real estate assets, predominantly located in Australia.
It entered the UK retail property market in December 2013 when it acquired a 50% stake in centre:mk in Milton Keynes for £270m. This major regional shopping centre was AustralianSuper’s first direct investment for its European property portfolio.
Earlier this month it selected TIAA Henderson Real Estate as investment manager for its central London office investment strategy. TH Real Estate will invest for AustralianSuper on a “case-by-case basis”, as the mandate does not have a fixed size, according to TH Real Estate.
TH Real Estate already invests on behalf of AustralianSuper in UK shopping centres, having been awarded an investment mandate by the pensions giant in 2013.
Rockspring chief executive Robert Gilchrist said: “As a result of AustralianSuper’s strategic decision to re-allocate and expand its global direct real estate exposure, we are honoured to have been mandated to help them build, over time, a Europe-wide portfolio featuring strategic office schemes and dominant shopping centres.
“As AustralianSuper’s chosen investment manager in continental Europe, we have already started working closely with their real estate team to identify prospective acquisitions that fit the superannuation scheme’s investment strategy and risk/return profile.”
Jack McGougan, head of Property at AustralianSuper, said: “We have been monitoring European markets closely over the past few years and we are now ready to establish a long-term presence through directly investing in the region.
“After a productive period of preparation with Rockspring we believe that their track record and local expertise will be instrumental to the construction and evolution of our European property portfolio.”
bridget.oconnell@estatesgazette.com
