PGGM has made a A$350m (€225m) commitment to an open-ended Australian real estate fund managed by Sydney-based EG Funds Management.
The Dutch pension fund has joined four Australian superannuation entities currently invested in EG Australian Core Enhanced Fund (EG ACE), a fund that now has A$1.25bn to invest on a geared basis.
The investment in EG ACE is the second commitment by PGGM to Australia in the past months. In November, it entered an A$800m partnership with Charter Hall to target industrial and logistics assets.
Senior director of PGGM, Ronald Bausch, said: “We see the Australian markets resetting and offering good risk-adjusted returns.”
Michael Noblet, EG ACE fund manager, told IPE Real Assets: “The whole investment mandate behind EG ACE fund is to acquire a portfolio of real estate assets across office, retail and industrial.
“The initial investment strategy has been to target light industrial and logistics assets in Sydney and Brisbane, with a counter-cyclical investment in the Perth office market.”
The fund had acquired properties valued at A$235m, since it was launched in 2019, and was currently considering a number of additional properties for acquisition.
PGGM is the third international institution to invest with EG Fund, which most recently received a mandate from Hong Kong’s listed Link REIT to help it expand its presence in Australia.
Last year, it won a mandate from Singapore’s GIC to build up a portfolio of around A$400m of Australian assets.
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