Rest’s $390m US private debt play

Mike Taylor

Managing Editor and Publisher

18 September 2025

Big retail industry superannuation fund REST has taken on a new private debt exposure, contributing $390 million as a co-investment with alternative asset manager, Blue Owl Capital.

Announcing the move, Rest said the investment showed how growing demand for alternative sources of commercial finance reflects the opportunities created by changes to debt financing markets.

The money will be directed into US-based real estate investment trust, STORE Capital which acquires commercial properties from business owners and then leases them back to the business owners under long-term triple-net leases’, commonly for durations of around 20 years.

Rest’s Head of Real Assets, Investments, Andrew Bambrook, said the investment reflects growing demand among business owners for alternative sources of commercial financing.

“The commercial finance sector has shifted in recent times. Many traditional lenders in the US have exited the sector, which has provided an opportunity for asset owners to step into this void and help businesses finance their growth,” he said

“Sale-and-leaseback transactions can allow business owners to unlock the capital tied up in their premises and redeploy it into their operations, while maintaining security and continuity through a long-term lease.

“For asset owners, like Rest, triple-net leases can offer long-term, predictable cashflows – often over 15 and 20-year periods.

“The majority of our two million members are decades from retirement, so we think deeply about the major forces shaping the global economy and society now and into the future. This investment is expected to benefit from one of these megatrends: systemic changes to debt markets.

“Inflation and interest rates are likely to stay higher for longer, which increases the attraction for businesses to rent rather than own real estate. We expect this shift will create more attractive investment opportunities for our members.”

Bambrook claimed the STORE Capital portfolio will assist with diversifying Rest’s property holdings with greater exposure to assets in the retail and industrial sectors.

“The portfolio is much more diversified than you’d typically see in real estate portfolios. This can create a durable portfolio that is more resilient to economic volatility, providing stable income streams and downside protection for Rest members,” he said.