POWERED BY MOMENTUM MEDIA
AMP Capital continues US property spree
AMP Capital's Global Direct Property Fund has expanded its US property holdings, purchasing a city office tower in Sacramento, California.
The US$29.4 million deal represents one of many US property purchases it has made as it focuses on top-tier secondary markets with early signs of potential growth, the property manager said.
"Secondary office markets like Sacramento are poised for growth, driven by strengthening economies," said AMP Capital global Direct Property Fund manager Tim Fallet.
"We want to position ourselves ahead of the capital flows, de-risk the asset by capturing a good share of leasing activity to achieve a stabilised 90-95 per cent occupancy profile and resell into a rising market to an investor hungry for core investments," he said.
AMP Capital said it acquired the property on a comparably lower average than other sales over the last decade, while economies of scale could give it the edge over landlords in the area. The building is one of the six non- owner-user buildings with LEED Gold certification in the city's business district.
Fallet said Australian super funds were increasingly looking to overseas markets to satisfy their property strategies as the Australian market became crowded due to demand for Australian property and the size of the market.
AMP Capital began re-investing in US property this year for the first time since the financial crisis, purchasing an office building in Boston, Massachusetts for US$17.6 million. It has also acquired an office block in Tampa, Florida for US$32 million and a land block for $US2.5 million.
"While the fund currently has a buy-side bias to the United States, we have a watching brief on further investment opportunities in Europe and Asia," Fallet said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
All merger proposals will have to be approved by the consumer watchdog under the sweeping merger reforms announced by the government on Wednesday.
More than two decades since Australian super funds first ventured into infrastructure, an investment services firm owned by industry funds says that the asset class is slowly breaking free of its “alternatives” identity.
In an address to the National Press Club last week, the incoming chair of Australia’s sovereign wealth fund said institutional investors could play a role in the winding road towards net zero.
The $75 billion fund has gained exposure to decarbonisation solutions in its first listed equities impact investment.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
73.88 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Add new comment