Kuala Lumpur: Heitman LLC (Heitman), a global real estate investment management firm, has announced an allocation from HESTA to invest in European alternative property types, including self-storage, student housing, residential, and health care. This investment establishes Heitman as one of HESTA’s largest international property investment managers.

According to BERNAMA News Agency, Heitman emphasized that alternative sectors, unlike traditional property types, are driven by needs-based demand and are undersupplied. This makes them less tied to economic cycles. Caleb Mercer, Heitman’s Managing Director for European Real Estate Investment, stated that these sectors present an attractive way to benefit from price reductions in Europe while mitigating exposure to uncertain economic conditions.

Jeff Brunton, HESTA’s Head of Portfolio Management, remarked that the new allocation with Heitman will help HESTA continue to build a diversified portfolio of property investments aimed at delivering strong long-term returns for its more than one million members. HESTA, one of Australia’s largest superannuation funds dedicated to health and community services, manages approximately AUD$93 billion in funds.

HESTA is already an investor with Heitman through its United States core investment strategy. This new investment enhances Heitman’s presence in Australia, where it currently manages AUD$8.4 billion across real estate equity and debt strategies. Founded in 1966, Heitman is headquartered in Chicago, with European headquarters in London, and operates 10 offices globally, participating actively in the global real estate property and capital markets.