AustralianSuper says better commercial property opportunities offshore

AustralianSuper says better commercial property opportunities offshore
AustralianSuper says better commercial property opportunities offshore

The sheer weight of capital being poured into Australian commercial property was impacting on pricing and yields, Christine Phillips, the head of asset management at AustralianSuper says.

It meant buyers had to make questionable assumptions about rent and core tenancy demand to justify their acquisitions, she advised as reported by the Australian Financial Review during a Property Council lunch in Melbourne on Tuesday.

"I see a potential unwinding of those assumptions, particularly in the office market," she said.

In an office market like Sydney, more supply has been mooted for a market that arguably does not need any more, she added.

Ms Phillips said growth opportunities were better in offshore markets.

"We have mandates to invest in UK office and retail property, US office, retail and multi-family accommodation and to invest in Europe," she said.

"Access to these types of assets is just not there in Australia."

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

Tags: 
Commercial Property Commercial Tenants

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