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Australian Super funds to invest in real estate in Europe and overseas

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The superannuation industry plans to invest in global real estate starting in Europe later this year. Chan & Naylor Accountants in Pymble discuss this recent move.  

The IFM Investors and Industry Super Property Trust (ISPT), which are owned by 27 superannuation funds, will soon launch International Property Funds Management (IPFM) late in 2018, which is said to target diversified property investments initially, targeting income-producing assets. 

IPFM will first invest in London, Paris, Berlin and Frankfurt. It is now mapping out its investment strategy that will focus on core properties in European gateway cities. The initial raising could be $500,000 with the first transactions that will likely happen in 2019. This will enable Australian super funds to invest in large-scale infrastructure and offer competitive risk-adjusted returns.  

It can be remembered that the superannuation industry had poor experiences on their first overseas real estate investments a decade ago because it happened during the global financial crisis. This led to losses for investors. Since then, super funds just invest an average of 10% in property, mostly focused on the Australian property market only.  

However, global investors are coming to Australia for geographical diversification and experts believe it may be good for superannuation to allocate the same level of investment overseas. AustralianSuper and REST have direct property investments in joint ventures with local partners, increasing long-term investment in core assets overseas like London. 

If you would like to know more about superannuation, you can click here to know more about Chan & Naylor services. You can leave your details here and Chan & Naylor Accountants Pymble can schedule you for a free consultation. We’ll contact you to explain more. 

Whether you are a beginner, seasoned investor or business owner, our property and business tax accountants can give you guidance to maximise the financial areas of your life. We can also give you an integrated and tailored solution for your superannuation, taxation, property investment, asset protection, estate planning and more.  

Click here to schedule a chat or visit any of our local offices near you. 

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Chan & Naylor Group has nationwide offices in Brisbane and Capalaba in Queensland, Melbourne and Moonee Ponds in Victoria, East Perth in Western Australia, and South West Sydney, Parramatta, Pymble, North Sydney, and Sydney in New South Wales. 

 

Related:  The benefits of running your own super fund

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2 responses to “Australian Super funds to invest in real estate in Europe and overseas”

  1. Senad Smajic says:

    Hi Cindy
    Could you please send me more information about IPFM
    Thanks

    • Chan & Naylor says:

      Hi Senad,
      There’s currently very limited info and we will not speculate on it at this stage. However, if you want more information about SMSF, please feel free to give me a call 02 – 93915000 and we can discuss some details and assist you from there.

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