Australian Retirement Trust (ART) has made its largest annual investment in Australian property, deploying $3 billion over the past 12 months across housing, office, industrial and healthcare assets as it seeks to generate long-term returns for members while supporting economic growth.
The investments span six local property funds and include a 19.9 per cent interest in Westfield Sydney alongside QIC, a 48.5 per cent stake in the LIV Mirvac Fund to support the delivery of build-to-rent housing, increased holdings in the Dexus Wholesale Property Fund and Mirvac Wholesale Office Fund, and additional capital allocated to the M.H. Carnegie Catalyst Healthcare REIT.
Managing more than $370 billion on behalf of 2.4 million Australians, including more than $19 billion in real estate equity, ART said the latest commitments further cemented its position as one of the country’s largest institutional property investors.
Michael Weaver, general manager of mid risk assets, said the investments reflected the fund’s confidence in the long-term fundamentals underpinning Australian real assets.
“Investing in Australian property aims to deliver strong returns for members, and helps to support jobs, economic activity and more liveable communities,” Weaver said.
“Australia’s population continues to grow, and that growth brings demand for more homes, workplaces, logistics facilities and retail destinations.”
The investment push comes as large superannuation funds continue to increase allocations to real assets, attracted by the prospect of long-term income streams and inflation-linked returns.
ART said property valuations had stabilised following the pandemic period, although it remained mindful of near-term market uncertainty.
“Property valuations have also stabilised post-Covid and we believe they will continue to provide an enduring source of inflation-linked returns for members, although we remain cautious in the short to medium term given the volatile geopolitical environment,” Weaver said.
“These assets are the places where Australians live, work and connect, and they play a vital role in the nation’s economy.”
Property remains a core component of ART’s diversified investment strategy, with the fund holding exposure to more than 5,000 direct and indirect properties across Australia.
The fund invests across both Australian and international listed and unlisted markets to help smooth returns and reduce investment risk during periods of volatility.
According to Weaver, around half of members’ retirement savings are invested domestically, representing approximately $180 billion across Australian shares, infrastructure, property and other assets.
“By investing at scale in Australian property, ART is backing national economic growth while always aiming to deliver strong long-term returns for members,” he said.
