AustralianSuper hired TIAA Henderson Real Estate to manage its push into central London office property.
Licardo Prince, a spokesman for the A$75 billion (US$69.5 billion), Melbourne-based superannuation fund, said TIAA Henderson Real Estate — which is 60% owned by TIAA-CREF and 40% owned by Henderson Global Investors — will work with AustralianSuper to find attractive opportunities in central London. He said there's no set target allocation.
In 2013, AustralianSuper appointed TIAA Henderson Real Estate to manage any investments it makes in the U.K. shopping center market. In December of that year, the fund made its first such investment, taking a 50% stake in a London-area shopping center for £270 million (US$450 million).
Jack McGougan, head of property at AustralianSuper, said the central London office market offers attractive investment opportunities, and the fund's existing relationship with TIAA Henderson Real Estate “reaffirmed our confidence” in that firm's capabilities, according to a news release from the fund.
AustralianSuper's real estate portfolio currently comes to A$6 billion, with plans to “significantly grow” that portfolio over the next five years, the news release said. Mr. Prince said there are no specific targets for that growth.
