Unlisted property update - to 31 December 2020

posted on 27.01.2021

This issue’s featured property: Victoria University Tower.


  • The Fund had a net capital gain of $29.92M during Q4 2020. 
  • On aggregate the independent valuations for Q4 2020 were largely flat with the value of the total direct property portfolio (excluding unit trust interests) of $15.09B. This reflected an increase of $5.23M (after development and capital expenditure) from the valuations recorded in Q3 2020. 

Key drivers of valuation 

  • Commercial: Increased by $6.22M (after capital expenditure) primarily as a result of discount rates firming on executed leases offset by some increased allowances (incentives and downtime) for current vacancies and near-term lease expiries. 
  • Retail: Decreased by $56.10M (after capital expenditure) primarily as a result of lower assessed market rent and increased vacancy. 
  • Logistics & warehousing: Increased by $47.96M (after capital expenditure) primarily as a result of widespread capitalisation rate and terminal yield firming of 25 to 50 bps. 
  • Education: Increased by $7.21M (after capital expenditure) as a result of the release of a portion of the profit and risk allowance at the Victorian University Tower project.

Unlisted property assets are a source of stability and great long-term returns for REI Super’s portfolio. 

Approximately 65% of REI Super’s property portfolio is invested in unlisted property assets, through one of our long-standing investment managers, Industry Super Property Trust (ISPT). 

Unlisted property assets are assets that are not listed on the Australian stock exchange and are generally not readily available to individual investors.   

Unlisted property investments are excellent long-term investments, providing a combination of growth and income to REI Super’s portfolio. They also have fewer short-term ups and downs in their returns than many investments. 

REI Super’s investments in ISPT are through its Core Fund, which is a diverse portfolio of around 75 Australian commercial, industrial and retail properties of unmatched quality across capital cities and regional centres.

Since inception in 1994 the ISPT Core Fund has achieved a total gross return of 9.48% p.a.

A growing portfolio of high-quality property assets

The portfolio includes many iconic Australian properties:

  • Melbourne’s GPO
  • Westfield’s Doncaster Shopping Centre
  • Brisbane’s Wintergarden complex
  • Casselden Place in Melbourne
  • Liberty Place in Castlereagh Street, Sydney
  • 2 National Circuit in Canberra
  • 100 St Georges Terrace in Perth 

Future investment performance can vary from past performance, and you should not base your decision to invest in REI Super simply on past performance. Past earning rates are not an indicator of future earning rates. The investment returns of REI Super are not guaranteed, and the value of the investment may rise or fall.

The information contained in this article does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation.

REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REI Super ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129. January 2021.