Hesta and Heitman to invest in European alternative real estate

Australian superannuation fund Hesta is expanding its investment with global real estate investor Heitman, allocating funds for European alternative real estate like self-storage, student housing, residential, and healthcare. 

Caleb Mercer - managing director, European Real Estate Investment at Heitman

This builds on Hesta's existing U.S. investment with Heitman and makes the firm one of Hesta's largest international property managers. 
The move also strengthens Heitman's presence in Australia, where it currently manages AUD 8.4 bn (€4.7 bn).
Hesta head of Portfolio Management Jeff Brunton said: "The new allocation with Heitman will support us in continuing to build a well-diversified portfolio of property investments designed to help deliver strong long-term returns for our more than one million members."
Caleb Mercer, managing director, European Real Estate Investment at Heitman, added: "Unlike traditional property types, the alternative sectors are driven by needs-based demand and are undersupplied, making them less tied to economic cycles. We believe this makes them an attractive way to benefit from the price reductions available in Europe while mitigating exposure to uncertain economic conditions."
Beau Titchkosky, managing director, Client Service and Marketing for Heitman in the Asia-Pacific region, added: "Heitman has been investing in U.S. core real estate on behalf of Hesta since 2017. We are delighted to expand our relationship with Hesta and deepen our commitment to the Australian market by providing bespoke solutions to our clients."