Global real estate back on the agenda for Australian super funds 

Nick Evans

Nick Evans

Global real estate group TIAA Henderson Real Estate (TH Real Estate) has earmarked 2015 as a year of resurgence for global real estate investing by Australian institutional investors – with Australian super funds leading the charge in search of long term stable income opportunities outside Australia.

Speaking at a briefing in Sydney today, Executive Director and Head of TH Real Estate’s Australian business, Nick Evans, said key demographic trends are impacting the investment decisions of the world’s largest investors including pension funds, endowments and sovereign wealth funds.

However, Australia’s fast growing super funds are in the box seat with a series of demographic megatrends converging on Asia and key gateway global cities.

According to recent data from Rice Warner*, Australia’s top ten super funds are on track to each amass assets of more than $100bn.

“Australian superfunds are rapidly joining the ranks of the world’s largest investors – yet at the same time fast growing out of the domestic real estate market,” Mr Evans said.

“Funds are also searching for better investment solutions for an increasingly ageing member base – people who want secure income at a reasonable level of risk to support a lengthy retirement.”

Demographic Megatrends

Earlier this month, TH Real Estate launched its inaugural global  ‘megatrends’ report, which outlines why the real estate industry needs to be more focused on bigger picture trends and insights – those that will impact the future use and demand for real estate globally over years and decades.

The report highlights five demographic megatrends that TH Real Estate believes will have the greatest impact on real estate:

  • Urbanisation
  • The rise of the global middle class
  • Shift of economic power from the West
  • Ageing demographics
  • Global interconnectedness

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