Superannuation funds could boost their returns by investing in European property, according to LGIAsuper.
LGIAsuper said it held an 11% share in real estate manager Europa Capital’s Parisian Semaphore investment. The office building was sold year ahead of business plans for $230 million and was forecast to generate an internal rate of return of 33%, with 50% extra capital created from the original 2017 investment.
The fund also had an 11% share in the real estate manager’s Copenhagen residential building which sold for $102 million, which would generate a return of 48% when completed in 2023.
LGIAsuper chief executive, Kate Farrar, said both properties were great examples of our partners’ value-add approach to asset investment.
“As a boutique super fund our point of difference is that we are able to pursue profitable mid-market investments because we can react quickly to opportunities in ways that big funds may not,” Farrar said.
“It’s why we appeal to members who want confidence that their fund’s investment strategy is going to protect them from market fluctuations and take advantage of all available opportunities.”
Australia’s second-largest super fund has added thermal coal companies to its list of investment exclusions.
The fund has expanded its corporate superannuation solutions to partner with Australian businesses of all sizes.
The chief executive of Aware Super anticipates a significant shift in how ESG factors will influence portfolio values in the next six years, surpassing the changes witnessed in the past two decades.
In a recent statement, shadow assistant minister for home ownership and Liberal senator for NSW, Andrew Bragg, accused ‘big super’ of fabricating data attributed to the Reserve Bank of Australia to push their agenda.
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