This article is from the Australian Property Journal archive
PROPERTY funds manager ISPT has officially joined global private markets manager IFM Investors in a transaction that brings together two major Australian industry superannuation-owned businesses.
IFM Investors put forward a binding offer of transaction terms which was endorsed by the ISPT board in August and then a vote of ISPT shareholders in December. The transaction was effected by way of a scheme of arrangement, and all required approvals and conditions precedent have now been satisfied.
There will be no significant immediate changes to the day-to-day operations of IFM Investors and ISPT, branding or the services provided to clients. Full integration of ISPT into IFM Investors will occur gradually.
ISPT chief executive Chris Chapple, who was announced to the role in May of 2022, has been appointed to the role of IFM Investors global head of real estate and will sit on IFM’s global strategy team. He brings 30 years of property industry experience, having previously been CEO of Blackstone’s Australian real estate portfolio company, 151 Property, and has held various roles at Charter Hall, JLL and Multiplex.
ISPT has $21 billion in funds under management and manages portfolio of property assets across various sectors, including retail, office, industrial, residential, education, health, and life sciences. It has been busy recently across property sectors via its businesses and trusts.
The ISPT Retail Australia Property Trust has just made two shopping centres acquisitions totalling $82 million – buying the Woolworths Clarkson in Western Australia for $36 million and taking full ownership of Mornington Central in Victoria.
That came hot on the heels of ISPT and Australian Retirement Trust securing the rights to develop a $585 million healthcare and life sciences hub at the University of Sydney.
The development will be a 30,000sqm NLA facility, which will be able to accommodate various uses such as a private hospital, consulting suites or specialist medical occupiers including pathology and diagnostics, education and medical research and life sciences organisations.
Meanwhile, ISPT has secured a long-term lease with the Department of Veteran Affairs at its Pathway Place office complex in Canberra following $67 million in upgrades, as well as major leases with big names Coles and Australia Post at speculative industrial developments in Eastern Creek and Blacktown.
Chapple said bringing ISPT’s real estate capabilities together with IFM Investors’ “broad global reach and deep investment experience will allow us to continue delivering exceptional outcomes for our clients, partners and stakeholders”.
“In addition, being part of IFM will also enhance our ability to grow our business further and pursue new opportunities, allowing us to capitalise on anticipated improved market conditions for the real estate sector over the next 12 months.”
IFM Investors chair, Cath Bowtell said, “Bringing together two organisations that share common history, ownership and purpose will strengthen our capabilities, investment offering and our capacity to deliver for the retirement savings of millions of working people.”
Owned by a group of pension funds, IFM Investors was established more than 25 years ago and has about $221.7 billion under management and manages investments across infrastructure equity, debt, listed equities and private equity from offices in Melbourne, Sydney, London, Berlin, Zurich, Amsterdam, Milan, New York, Houston, Hong Kong, Seoul and Tokyo.
