Australian superannuation fund Hesta is investing in various European alternative property types through real estate investment management firm Heitman.
Heitman has secured an unspecified allocation from Hesta to invest in real estate assets such as self-storage, student housing, residential and healthcare.
Hesta is already an investor with Heitman through the manager’s US core investment strategy.
Jeff Brunton, head of portfolio management at Hesta, said: “The new allocation with Heitman will support us to continue to build a well-diversified portfolio of property investments designed to help deliver strong long-term returns for our more than one million members.”
Caleb Mercer, managing director, European real estate investment at Heitman, said: “Unlike the traditional property types, the alternative sectors are driven by needs-based demand and are undersupplied, making them less tied to economic cycles.
“We believe this makes them an attractive way to benefit from the price reductions available in Europe whilst mitigating exposure to uncertain economic conditions.”
Beau Titchkosky, managing director, client service and marketing for Asia-Pacific at Heitman, said: “Heitman has been investing in US core real estate on behalf of Hesta since 2017. We are delighted to expand our relationship with Hesta and deepen our commitment to the Australian market by providing bespoke solutions to our clients.”
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