Swiss Re is understood to have given a large mandate to AMP Capital to invest in Australian real estate.

Market sources have told the Australian media that Swiss Re, a Zurich-based reinsurer, intends to invest between AUD500m and AUD1bn (€727m) in office and industrial assets.

Neither Swiss Re nor AMP Capital, an Australian fund manager, would comment.

However, a source told IPE Real Estate he believed the deal had been done and the confidential nature of the mandate would prevent AMP Capital from confirming.

In 2016, AMP Capital raised more than AUD1.3bn from Australian and offshore investors for its unlisted property trusts.

It recently began investing in development land in Australia on behalf of an unnamed international investor.

The company is embarking on one of Australia’s most expensive redevelopment projects, known as the Quay Quarter, at Circular Quay in Sydney’s central business district. Industry sources say the completed project could be worth AUD2bn.

AMP Capital also recently established a presence in Australia’s industrial sector, purchasing JP Morgan’s industrial portfolio in July last year for AUD250 million.