Heitman LLC (“Heitman”), a global real estate investment management firm, today announced an allocation from HESTA to invest in European alternative property types, including self-storage, student housing, residential, and health care. With over 1 million members and approximately AUD 93 billion of funds under management, HESTA is one of Australia’s largest superannuation funds dedicated to health and community services. This investment establishes Heitman as one of HESTA’s largest international property investment managers.
“The new allocation with Heitman will support us to continue to build a well-diversified portfolio of property investments designed to help deliver strong long-term returns for our more than one million members,” HESTA Head of Portfolio Management Jeff Brunton said.
Caleb Mercer, Managing Director, European Real Estate Investment at Heitman added “Unlike the traditional property types, the alternative sectors are driven by needs-based demand and are undersupplied, making them less tied to economic cycles. We believe this makes them an attractive way to benefit from the price reductions available in Europe whilst mitigating exposure to uncertain economic conditions.”
HESTA is an existing investor with Heitman through its U.S. core investment strategy. HESTA’s new investment adds to Heitman’s footprint in Australia, with Heitman currently managing AUD 8.4 billion across real estate equity and debt strategies.
“Heitman has been investing in US core real estate on behalf of HESTA since 2017. We are delighted to expand our relationship with HESTA and deepen our commitment to the Australian market by providing bespoke solutions to our clients,” said Beau Titchkosky, Managing Director, Client Service and Marketing for Heitman in the Asia-Pacific region.
