Super funds look to investments not available in Australia

Three super funds have invested $285.6m in an alternative US real estate strategy from Nuveen.

Cbus Super, Hostplus and TWUSuper are making a combined US$190m ($285.6m) investment in Nuveen’s US Cities Workplace strategy.

The real estate investment manager’s strategy invests in alternative workplace assets, primarily across the medical office, life science, technology research and development and studio production sectors in American cities best positioned for demographic and structural growth.

Nuveen said the strategy was built on the foundation of innovation, healthcare and technology demand drivers. The strategy sat within its global resilient series based on its core income strategy and long-term capital growth potential.

Cbus Super head of property, John Longo, told Citywire the investment was an ‘interesting opportunity’.

‘[It] will provide exposure to core assets with growing underlying demand drivers. The medical office, life science and tech research and development space are established sectors in the US that are not generally available in Australia,’ Longo said.

‘These sectors add to our highly diversified unlisted property portfolio. Given the softer current market conditions, we expect this to provide a good entry point for long-term performance.’

Hostplus and TWUSuper made the investment after advice from asset consultant Jana Investment Advisers to be keen on investing in sectors not readily available in the Australian market.

Nuveen’s managing director and head of Australia, Andrew Kleinig, said: ‘This is the exciting start of four new partnerships with institutions looking to generate long-term income for their investees.

‘Against a difficult economic background, we see fundamental opportunities in the US alternative workplace sector and look forward to sharing these with our new partners.’

The strategy acquired two offices – Optical Court and Maryland Farms – in January 2020.

Optical Court is a two-building, 100%-leased, life science investment, located in San Jose, California, while Maryland Farms is a healthcare office park in Brentwood Tennessee.

The three superannuation funds manage a combined $176.5bn.