Heitman to Manage $440M Global Listed Property Investment Mandate for Australian Firm
- Nov 12, 2014
Advance Asset Management, an Australian specialist asset management firm, has chosen Chicago-based Heitman, L.L.C. to manage AUD$500 million in listed property investments globally.
The long-only mandate will enable Heitman to invest that amount, approximately $400 million in U.S. dollars, in a concentrated portfolio of AsiaPacific, North American and European global real estate securities. The portfolio will consist of real estate securities investing in up to 25 percent of the FTSE EPRA/NAREIT Developed Index, which is currently less than 80 stocks, according to Heitman. The strategy will offer investors an actively managed portfolio.
“Our investment professionals strive to generate competitive investment returns for our clients throughout the world, and being selected is a wonderful acknowledgement of their hard work,” Kathy Sandstrom, senior managing director of Heitman’s Global Real Estate Securities group, said in a news release. “We look forward to building a long and lasting relationship with Advance.”
Advance focuses on asset allocation, manager selection and risk management with funds that are built around long-term strategic asset allocations. It is part of the BT Financial Group, a wealth and insurance business within Westpac Group, one of Australia’s largest banking corporations. In a posting on its website, Advance noted it selected Heitman to manage the fund because the firm has “delivered strong and consistent performance over time due to its robust investment process, strong sell discipline and more focused investment portfolio.”
Heitman has more than $31 billion in assets under management. Serving a global client base, Heitman invests in commercial real estate directly or in publicly traded real estate securities.
“Investor demand for real estate continues to grow around the world,” John White, managing director and head of Heitman’s Asia-Pacific Public Real Estate Securities group, said in the release. “Even in this period of irregular economic growth, occupier demand is showing improvement and new construction is limited in most markets.”
White said asset classes such as listed real estate offer investors an attractive yield.
“Through allocating a considerable amount of capital to listed real estate, we believe that Advance is making a strategic move to enhance exposure to opportunities from the current and long-term expected market conditions for listed property.” White added.