Dutch pensions manager PGGM committed €200 million ($235 million) to industrial real estate fund, EG Australian Core Enhanced Fund, managed by EG Funds Management, a spokesman confirmed.
The fund will initially target industrial and logistics assets in Sydney and Brisbane, Australia, with countercyclical investments such as office assets in Perth.
Further investments will be made into urban industrial assets, office buildings and retail assets.
"We were looking for a mandate with an active manager that allows us to build up a portfolio now without any heritage assets," the spokesman said. PGGM has €15.4 billion in private real estate assets under management.
The multisector mandate allows PGGM to find opportunities that may have become apparent in the aftermath of the COVID-19 crisis, he added.
Ronald Bausch, senior director at PGGM, said in an EG Funds Management news release that the Australian market is offering good risk-adjusted returns as it resets after the initial impacts of the coronavirus crisis.
PGGM is the in-house manager for Pensioenfonds Zorg en Welzijn, Zeist, which has €238 billion in assets. PGGM manages a total €266 billion in assets under management.
