AustralianSuper to double property investment over next four years

Industry super fund AustralianSuper plans to invest another $4 billion in the property sector over the next four years, doubling its exposure to the sector to $8 billion.

The super fund currently has $4.2 billion invested in real estate, with most held in pooled unlisted funds managed by Melbourne-based superannuation property fund ISPT and investment manager AMP Capital.

It has no investments in the listed A-REIT sector.

“AustralianSuper is a big investor in property and we’re growing,” says fund chairwoman Elana Rubin ahead of an address to Australian Financial Review’s Commercial Property Conference 2012 in Sydney tomorrow.

In this speech Rubin will outline a new property investment strategy for the fund which has 1.8 million members and a total investment portfolio of $42 billion.

“Not only are we growing in terms of the amount we will be investing, but we are changing the way we invest. This includes how and where,” say Rubin.

Future investment options could include offshore property ventures and ­investment in real estate debt.

According to analysts Chant West, at the end of 2011, A-REITs accounted for only 2.2% of all industry fund growth options.

AustralianSuper’s funds under management portfolio could reach $100 billion during the next five years.