AustralianSuper has hired TIAA Henderson Real Estate to manage a central London office investment strategy.
The mandate comes a year after the real estate arm of Henderson Global Investors – now part of TIAA Henderson Real Estate – was appointed by AustralianSuper to invest in UK retail property.
AustralianSuper, Australia’s largest superannuation scheme with AUD75bn (€60bn) in assets, is seeking to increase its global real estate exposure. At the moment, its AUD6bn property portfolio is predominantly invested in Australia.
Jack McGougan, head of property at AustralianSuper, described the mandate as “an ideal fit”. He said: “The UK office market – central London in particular – sits well with out investment approach. It has a record of strong returns over the long term, transparency, good liquidity and a positive overall economic outlook, among a range of attributes.”
AustralianSuper announced last year it had hired Henderson Global Investors to invest in UK shopping centres, shortly before Henderson and TIAA-CREF announced they would be launching their 40/60 property fund management joint venture.
In December last year, TIAA Henderson Real Estate revealed it had advised AustralianSuper on the acquisition of a 50% stake in a £270m (€332m) shopping centre in Milton Keynes.
“Our existing relationship has reaffirmed our confidence in the capabilities of the organisation and its alignment with the AustralianSuper philosophy,” McGougan said.
Henderson Global Investors opened an office in Australia in 2012, headed up by Nick Evans, with a view to investing in Australian property and to managing Australian capital. TIAA Henderson Real Estate has since stated its intention to increase its activity in Asia-Pacific.
Evans, head of Australia for TIAA Henderson Real Estate, said: “We are building a collaborative working relationship with sophisticated clients and partners in Australia, and we are committed to building a sustainable business in this important marketplace.”