AustralianSuper ups ante on European property

AustralianSuper has again flexed its global investment muscle, this time acquiring a 50% stake in a $1.4 billion European industrial and logistics portfolio operated by global real estate investment and development firm, Oxford Property Group.

The transaction builds on AustralianSuper’s existing property exposure in the Europe and its growing investment presence out of London.

AustralianSuper is describing the transaction as a joint venture which it says brings together to like-minded global institutional investors managing a combined $550 billion of long-term capital on behalf of over four million pension fund members.

It said the partnership would provide further capital to fund the growth of the portfolio, known as the European Supply Chain Income Partnership, with a target of up to $7.5 billion GAV of high quality ‘last mile’ and mid-box warehouses over the next three to five years.

The announcement said the Portfolio currently comprises around 730,000 sqm high-quality urban logistics and distribution warehouses across 76 assets locate in the UK, Denmark, France, Germany, the Netherlands and Spain.

It said M7 Real Estate, as investment and asset manager, will be tasked to source and execute on new opportunities for the strategy targeting income-led exposure across the pan-European supply chain.

Commenting on the investment, AustralianSuper head of European Real Assets, Paul Clark, said the fund believed urban logistics and distribution represented a compelling opportunity in European real estate.

He said the fund had been tracking the sector for several years to find the right portfolio that met its ambitions.

The transaction is expected to complete at the end of the first quarter of this year.