AustralianSuper has announced Principal Real Estate Investors will be its investment adviser for its US office effort, effective immediately.
PREI, an arm of Principal Financial Group, manages or sub-advises $54.3 billion in commercial real estate assets.
The new non-discretionary mandate between AustralianSuper and PREI will see investments in properties of US$200 million or higher via joint ventures or through direct outlay, in large, office investments in major U.S. markets, including New York, Washington, D.C., Boston, San Francisco and Los Angeles.
The announcement of PREI's selection continues AustralianSuper's objective of increasing its direct investment in global property markets, with establishment of mandates in Australia, Europe, United Kingdom and North America in the last two years.
Head of property at AustralianSuper Jack McGougan said: "We've been tracking the U.S. market for an extended period of time and we see good long-term opportunities in select markets to continue to build our international property portfolio.
"We are excited to formalise our relationship with Principal Real Estate Investors as an investment manager of our U.S. office strategy. We are confident they are the right partner for us given their deep expertise in the sector, strong asset management capability and true national coverage."
PREI's parent group Principal Financial Group has had interest in the Australian market, having entered into a venture making commercial real estate loans and package them into bonds with Macquarie Group in September this year.
Senior managing director, head of private equity portfolio management at PREI Jay Davis commented: "We've gotten to know the real estate team at AustralianSuper very well over the past several years.
"They are very strategic investors with a patient, decisive approach and a long-term investment horizon. We look forward to working with AustralianSuper to create a high-quality portfolio of U.S. office properties."
