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Real Estate

Super fund-owned IFM, ISPT to launch offshore real estate investment joint venture

IFM Investors and Industry Super Property Trust, alternatives investment managers owned by the same group of more than two dozen Australian superannuation funds, will launch a joint venture, International Property Funds Management, to invest in unlisted real estate overseas.

Tony McCormack, head of capital transactions for ISPT, a Melbourne-based boutique investing more than A$15 billion ($11.4 billion) of its owners' money in Australian property, will become CEO of the 50-50 venture, due to be formally launched in the third quarter of 2018.

A spokesman for IFM and ISPT couldn't immediately say whether a replacement has been named for ISPT's head of capital transactions role.

Mr. McCormack said in a telephone interview that IFM's global footprint — with infrastructure investments in a dozen countries and offices in half a dozen overseas — will offer the sales and client service capabilities the joint venture will need to serve third-party clients.

On that score, the joint venture's business model will resemble that of IFM, which started out more than 20 years ago managing money for its owners before building out a robust third-party business as well in recent years.

IFM currently has more than A$105 billion in assets under management.

The venture's first strategy will be a diversified, pooled fund focused on core properties in European gateway cities.

Mr. McCormack said the joint venture's initial hires include Tim Stringer, who joins International Property Funds Management as chief investment officer from Melbourne-based investment consultant Frontier Advisors, where he served as principal consultant, property, and Tony Singh, who joins as an investment manager from Ernst & Young in Melbourne, where he was an associate director, real estate advisory services.

Spokesmen at Frontier and EY couldn't immediately be reached for comment.