HESTA dips into European alternative property space

Australian superannuation fund, HESTA, has entered the European alternative property market via its existing investment relationship with global real estate firm, Heitman.

The investment management firm confirmed HESTA would make an investment in several alternative property types, including self-storage, student housing, residential and healthcare.

“The new allocation with Heitman will support us to continue to build a well-diversified portfolio of property investments designed to help deliver strong long-term returns for our more than one million members,” HESTA Head of Portfolio Management, Jeff Brunton, said.

Caleb Mercer, Managing Director, European Real Estate Investment at Heitman, welcomed the super fund’s move into the alternative space.

“Unlike the traditional property types, the alternative sectors are driven by needs-based demand and are undersupplied, making them less tied to economic cycles,” he said.

“We believe this makes them an attractive way to benefit from the price reductions available in Europe whilst mitigating exposure to uncertain economic conditions.”

The new investment will sit alongside HESTA’s existing involvement with Heitman through its US core investment strategy, adding to the investment manager’s more than $8 billion in funds under management (FUM) currently held across real estate equity and debt.