Global Real Estate

Investment Philosophy
We invest in long term growth assets and enhance market returns by creating significant value-adding opportunities in those assets. We have a disciplined approach, where the risk-return trade off is objectively assessed at both the strategic and tactical level in a market environment where information is scarce. We target a particular level of risk and seek to optimise returns by exploiting the inefficiencies of real estate markets. We move downstream with our delivery process in real estate investment because this:

• provides access to information
• permits efficient control of risk
• is where the value-adding opportunities are located.

Our thorough understanding of local market dynamics, achieved through hands-on participation at every level, provides a sound basis for property sub-market allocation.

Investment Objective
QIC’s objective for property assets is to provide consistent growth in the longer term while at the same time delivering above average short term results. A fundamental component of the investment strategy is the delivery of a significant project development pipeline. In the current competitive investment climate it is increasingly difficult to acquire quality assets which are accretive to fund return. Accordingly, we remain focused on development projects which not only provide an incremental return on capital but also enhance the perception and performance of existing fund assets.

Investment Strategy

• Investment in and development of town centre regional and sub-regional retail property and prime CBD commercial buildings.
• Properties with long term growth potential supported by strong trade area demographics.
• “Balance land” for future development.
• Implement value adding development and asset management strategies.
• Moderate gearing level.
• Proactive management strategy.

Our optimal portfolio varies depending on the relative strength of property sectors from time to time. We have been comfortable with the (overweight to retail) sector mix over the last decade. This position is likely to remain a key part of the fund’s composition.

Performance of our Real Estate fund

For more information on QIC’s Real Estate please contact Trevor Gordon on +61 7 3360 6646 / e: t.gordon@qic.com