AustralianSuper is moving into its domestic residential market by awarding two mandates to ISPT and QIC.
Australia’s largest superannuation scheme wants to invest in the ‘broadacre subdivision’ of the market – housing projects on the outskirts of cities – over the long term.
Jack McGougan, head of property at AustralianSuper, said: “We’ve been researching the sector for a long time and we see good long-term opportunities.”
He added: “The housing sector is such a key component of the broader economy – it is after all Australia’s largest investment class – and in it we see real potential for executing an effective long-term strategy.
“What these mandates are about is identifying long-dated projects. It’s not about short-term house price dynamics but rather the opportunity to deploy capital based on the sector’s long-term profile.”
“When looking to invest in residential property, sourcing long-term partners with specialist investment capabilities relevant to the sector is critical.”
AustralianSuper did not say how large the mandates would be.
The institution already invests with ISPT and QIC in commercial real estate. It recently awarded a mandate to QIC to invest in retail property in the US.
AustralianSuper has awarded a number of mandates in the past 18 months as it seeks to increase its global real estate exposure. They include strategies to invest in Australian retail and office, UK retail, US retail and office and Europe retail and office markets.
“The property portfolio is a key component of AustralianSuper’s investment mix,” McGougan said.
“With these mandates in place, we are implementing a direct property investment strategy which will ensure that we are well positioned to source and invest in valuable opportunities in a range of sectors and locations.”