Australians: A large number of pension funds flood the housing market
Sydney Today, March 3, Australia Eastern Time. Recently, a large number of pension funds and institutional investors have poured into the commercial real estate market. Relevant data shows that the influx of funds exceeds 15 billion Australian dollars. It is expected that in the next few months, this The numbers will continue to increase.
Institutional investors are looking for loans on individual assets, or loans as part of a pool of collective commercial mortgage funds. Telstra Super has provided 5 billion in funding for five construction projects, the largest of which is the Australian Taxation Office building under construction in Adelaide, with a financing amount of 25 billion.
Pension fund investors believe that the commercial real estate market is very attractive, because the funds they invest can be returned immediately, and the return rate of return is between 7.25% and 8.25%, which is "a good level." Telstra Super sees this investment as a way to reduce its investment risk and ensure a balance of payments and is actively seeking other projects of the same type.
Similarly, the Singapore-listed K-REIT Real Estate Investment Trust has entered a real estate company with Mirvac Group for investment, including financing 8 billion yuan for the 30 Chifley office project under construction in Sydney. The Singapore Government Investment Corporation is a long-term investor in the medium-term debt market. The company has invested 30 billion in Challenger Financial as medium- and long-term debt.
Challenger has raised 40% of the 70 billion needed from Australian Super and Hesta, a super fund in the health industry. It is understood that Challenger is negotiating with the two major funds to increase the capital by 20 billion; so far, Challenger has used the borrowed funds to purchase commercial buildings, but is also preparing to finance some commercial buildings. Its partner Michael Wood revealed that more funds may be invested in the commercial real estate market.
Private equity groups usually buy the debts of distressed companies because they themselves want to wait for these companies to get these assets when they actually go bankrupt, but private equity investment companies including Partners Group, Babson and Pacific Alliance are different from them. People usually seek a higher rate of return, such as entering the real estate market.