ART pumps $3bn in Australian property funds

Australian Retirement Trust (ART) has made its largest annual investment in Australian property, investing $3 billion across six local funds.

ART said the investments will help develop housing supply, new offices and jobs-generating industrial land, and support community and economic growth.

The investments include a 19.9% interest in Westfield Sydney with QIC; a 48.5% stake in the LIV Mirvac Fund to support the delivery of build-to-rent housing; increased holdings in the Dexus Wholesale Property Fund and Mirvac Wholesale Office Fund; and additional capital allocated to the M.H. Carnegie Catalyst Healthcare REIT.

The $370 billion super fund now has more than $19 billion in real estate equity.

ART general manager, mid risk assets Michael Weaver said the property investments reflected ART's belief in the Australian real asset investment fundamentals as a long-term investor.

"Investing in Australian property aims to deliver strong returns for members, and helps to support jobs, economic activity and more liveable communities," Weaver said.

"Australia's population continues to grow, and that growth brings demand for more homes, workplaces, logistics facilities and retail destinations.

"Property valuations have also stabilised post-COVID and we believe they will continue to provide an enduring source of inflation-linked returns for members, although we remain cautious in the short to medium term given the volatile geopolitical environment.

"These assets are the places where Australians live, work and connect, and they play a vital role in the nation's economy."

ART said property remains a key part of its diversified investment strategy, providing members with potential exposure to long-term, income-generating assets.

ART holds a diversified portfolio of more than 5000 direct and indirect properties across Australia.

Weaver added that around half of members' funds were invested in Australia - totalling about $180 billion in holdings across shares, infrastructure, property and other investments.

"By investing at scale in Australian property, ART is backing national economic growth while always aiming to deliver strong long-term returns for members," he said.