UniSuper makes $500m unlisted property deal

UniSuper has acquired a 50 per cent interest in an industrial property portfolio for $500 million.

The $120 billion fund acquired the interest in the 340-square metre portfolio, which comprises assets across Sydney and Melbourne, from the National Pension Service of Korea.

Tenants on the portfolio’s property include Coles, Roche, Blackwoods, and UPS and UniSuper will invest alongside existing co-owners Dexus and Blackstone.

This new addition brings UniSuper’s unlisted property assets to $7.3 billion.

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Nick Stephens, senior manager for property at UniSuper, said: “We are delighted to acquire this high-quality portfolio of stabilised income producing assets to complement our existing industrial development pipeline in the strongly performing logistics sector. 

“The investment adds to our $7.3 billion unlisted property portfolio. The transaction highlights UniSuper’s ability to transact swiftly without the need for debt funding or regulatory approvals. As genuine long-term investors, we continue to look for unique opportunities that help our members grow their retirement savings.”

The deal was negotiated by real estate investment manager Richmond Bridge as part of its new advisory mandate to build an industrial property portfolio across major Australian capital cities.

This is the second major industrial purchase by the fund this year after it invested $105 million in a 13-hectare industrial property in Melbourne. This is expected to benefit from major infrastructure project such as the West Gate Tunnel and Fishermans Bend Urban Renewal project.

UniSuper delivered a solid 10.3 per cent return with its default Balanced option in the financial year 2022–23. 

According to SuperRatings analysis, this put the fund in fourth place in Balanced option performance, behind ESSSuper (13.3 per cent), Vision Super (11 per cent), and Brighter Super (10.6 per cent). 

The fund said its portfolios are “well positioned” to deliver industry-leading value moving forward.

John Pearce, UniSuper’s chief investment officer, said: “While it was good to see the Balanced option hit double-digit returns for the financial year, our focus is always on the longer term. 

“In that regard we are confident that current portfolio settings, with a quality bias and ample liquidity, places us in good stead to deliver on long-term objectives.”