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Property Investment Option

The Property Investment Option provides investors with exposure to comprehensive and diversified portfolios of real property assets across the industrial, retail, residential and commercial sectors. Investments in this option are managed by some of the largest and most experienced investment managers in the domestic and international marketplace.

Our core property investments are backed by best-in-class sustainability programs and a firm commitment to benchmarking key ESG attributes using industry-approved rating systems, such as Green Star, NABERS, and GRESB.

A key attribute of this asset class is the consistency of income generated by rents sourced from a highly diversified cohort of tenants. While capital growth is still evident, income growth typically provides a larger component of return growth from this asset class. This attribute allows strong diversification benefits which help to reduce overall portfolio risk.

Strategic Asset Allocation

Property

Target return

Accumulation:
CPI plus 2.5% p.a. on average over 20 years
Pension:
CPI plus 3.5% p.a. on average over 20 years

Investment risk1

High (Negative returns expected in between 4 to less than 6 out of every 20 years)

Investment style

This option invests in Australian and global property across a variety of sectors and has an income bias aiming to offer investors lower relative earnings volatility and a higher income yield, albeit with some exposure to capital appreciation.

Investment objective

This option aims to achieve consistent income returns and capital growth over the longer term.
This option may suit Accumulation investors who have a seven year plus investment time horizon.
This option may suit Pension investors who have a three year plus investment time horizon.

Minimum suggested investment time frame2

Accumulation:
7 + years
Pension:
3 + years

Asset allocation guidelines

Asset Class

Range

Strategic Asset Allocation Benchmark

Property

0 – 100%

100%

30%: Growth Assets
70%: Defensive Assets

1. The level of investment risk is based on an industry-wide Standard Risk Measure. It shows the number of expected negative annual returns over a 20-year period.
2. The Minimum Suggested Investment Time Frame is based on the risk and return profile of this option. The time frame considers volatility and the likelihood of negative annual returns in any one year.


Investment Managers as at March 2019:

  • Australian Prime Property Funds (Retail, Commercial & Industrial) – Lendlease Investment Management
  • Charter Hall Prime Industrial Fund – Charter Hall Funds Management Limited
  • Charter Hall Prime Office Fund – Charter Hall Funds Management Limited
  • ISPT Core Fund – ISPT Pty Ltd 
  • ISPT Development and Opportunities Fund I – ISPT Pty Ltd
  • ISPT Development and Opportunities Fund II – ISPT Pty Ltd
  • ISPT Non-Discretionary Residential Mandate – ISPT Pty Ltd
  • ISPT Retail Australian Property Trust – ISPT Pty Ltd
  • Invesco Core Real Estate USA (ICRE) Fund – Invesco Core Real Estate U.S.A., L.P.
  • Kayne Anderson Core Real Estate, L.P. – Kayne Anderson Core Real Estate Advisors I, LLC
  • Lendlease Asian Retail Investment Fund – Lendlease Investment Management
  • Lendlease Communities Fund 1 – Lendlease Investment Management
  • Lendlease Sub-Regional Retail Fund – Lendlease Investment Management
  • Long Weighted Investment Partnership (LWIP) Trust – Charter Hall Wholesale Management Limited
  • Long Weighted Investment Partnership (LWIP) Trust II – Charter Hall Wholesale Management Limited
  • Macquarie Real Estate Equity Fund 6 – Macquarie Admin Services Pty Limited
  • Select Property Portfolio No. 2 – AMP Capital Investors Limited
  • Select Property Portfolio No. 3 – AMP Capital Investors Limited

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