Queensland-based superfund LGIAsuper has invested $18 million in the refurbishment of a historic London members’ club.
The Sloane Club, located in Chelsea, West London, was a private members’ club which dates back to the 18th century.
Acquired via LGIAsuper’s UK-based property partner Clearbell Capital, the funding would be used to refurbish the club’s accommodation, spa, and restaurant.
It was structured as a joint venture with hospitality management company Queensway which owns various hotels, restaurants and commercial properties.
LGIAsuper chief executive, Kate Farrar, said the investment would diversify LGIA Super’s portfolio as well as generate increased returns for members.
More than 70% of the portfolio’s listed share assets were invested outside of Australia.
“LGIAsuper is committed to supporting Australian and regional businesses but diversification of asset size, location and type is important to ensure we can achieve solid investment returns for our members.
“Diversification is a crucial part of our strategy and reduces the exposure to any one particular asset or risk factor.”
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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