Research

Real Assets, Real Growth in Australia: A Preqin & Perpetual Study

Investors across real assets (comprising real estate, infrastructure and natural resources) are finding attractive deals in Australia’s key markets, which offer all the right conditions for investment in today’s low interest rate environment. With one of the largest pools of alternative assets under management, Australia is widely seen as a global leader in infrastructure and is recognized for its expertise in financial advisory services.

As demand from international investors looks set to increase, Preqin and Perpetual have pooled their research and analytical expertise to produce Real Assets, Real Growth in Australia: A Preqin & Perpetual Study.

The report finds that:

  • The Australian Government will be allocating AUD 100bn to infrastructure projects over the next 10 years.
  • The annual amount of capital secured by Australia-focused real assets funds peaked in 2017 at $3.2bn.
  • In the private equity real estate (PERE) space, 234 transactions were completed between H2 2018 and H1 2019. Office properties comprised the largest proportion of deals, at 44%.
  • The largest PERE deal in the past year was Blackstone Group’s June 2019 acquisition of an AUD 1.5bn Central Sydney office portfolio from shopping centre company Scentre Group.
  • Within the infrastructure sector, 70 deals were completed in the year to June 2019. The privatization wave in Australia’s infrastructure industry has generated new opportunities to acquire assets that were previously government owned.
  • The largest deal in the past year was a privatization play involving WestConnex Motorway, a toll road located in Sydney, when a consortium purchased a 51% stake in WestConnex Motorway for AUD 9.3bn in August 2018.
  • In 2017 and 2018, over 80% of real assets investors surveyed by Preqin said their real assets investments had lived up to or exceeded their expectations.

Download the report below to find out more about the positive investment outlook, stable returns and generous tax incentives that are attracting investors to Australian real assets from across the globe.

  • 04/11/2019
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