AussieSuper picks TH Real Estate

The A$75 billion superannuation fund has followed last year’s award of a UK shopping center investment management mandate to TIAA Henderson Real Estate with a central London offices agreement.

AustralianSuper, the biggest Australian industry superannuation fund, has selected TIAA Henderson Real Estate as its investment manager for a central London office strategy.

The London office mandate that TIAA Henderson Real Estate has won follows last year’s selection for it to become the investment manager for the investor’s entry into the UK shopping center market, for which it completed a £270 million (€332 million; $452 million) acquisition in December. The superannuation fund teamed up with Hermes Real Estate Investment Management to buy a 50 percent stake in thecentre:mk shopping mall in Milton Keynes.

The A$75 billion fund has a target to grow its global property portfolio over the next five years and so far has A$ 6 billion of assets in Australia, the UK and elsewhere.

Jack McGougan, head of property at AustralianSuper said in a statement: “This mandate is an ideal fit for AustralianSuper. The UK office market – central London in particular – sits well with our 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.”

TIAA Henderson Real Estate – or TH Real Estate for short – is the new global alliance owned 60 percent by TIAA-CREF of the US and 40 percent by London-based Henderson Global Investors that was officially launched in April this year and manages around $22.6 billion of assets in the US, Europe and Asia.

The company has a significant central London portfolio having built it up to A$1.5 billion of assets, including developments and existing income-producing buildings. Clive Castle, the director of central London offices, called the city’s occupier base “rapidly changing” and added the firm preferred not to “chase the pack” when investing in the asset class.

Nick Evans, head of Australia for the firm, said the company was building relationships with sophisticated clients and partners in the country, of which AustralianSuper was an example.