HESTA Allocates Capital to Heitman for Strategic Expansion in European Property Sector
Heitman LLC has received capital allocation from HESTA, one of Australia’s largest superannuation funds with AUD 93B AUM and 1M+ members, to invest in European alternative real estate sectors including self-storage, student housing, residential, & healthcare.
First published onLondon Proptech Show ↗
Melbourne, Australia – 12th June 2025 – Heitman LLC, a global real estate investment management firm, has been allocated capital by HESTA, one of Australia’s largest superannuation funds with over 1 million members and approximately AUD 93 billion in funds under management, to invest in European alternative property types, including self-storage, student housing, residential, and health care. This strategic allocation positions Heitman as one of HESTA’s largest international property investment managers, expanding their partnership established in 2017 through HESTA’s U.S. core real estate investment strategy.
Targeting sectors with needs-based demand and limited supply, the investment aims to deliver resilience against economic cycles while capitalizing on attractive pricing in Europe. Heitman, currently managing AUD 8.4 billion across real estate equity and debt strategies in Australia, will leverage its expertise to enhance HESTA’s portfolio diversification and long-term return potential.
In an official press release, Jeff Brunton, HESTA Head of Portfolio Management, stated, “The new allocation with Heitman will support us to continue to build a well-diversified portfolio of property investments designed to help deliver strong long-term returns for our more than one million members.”
Caleb Mercer, Managing Director, European Real Estate Investment at Heitman, added, “Unlike the traditional property types, the alternative sectors are driven by needs-based demand and are undersupplied, making them less tied to economic cycles. We believe this makes them an attractive way to benefit from the price reductions available in Europe whilst mitigating exposure to uncertain economic conditions.”
Beau Titchkosky, Managing Director, Client Service and Marketing for Heitman in the Asia-Pacific region, said, “Heitman has been investing in US core real estate on behalf of HESTA since 2017. We are delighted to expand our relationship with HESTA and deepen our commitment to the Australian market by providing bespoke solutions to our clients.”
This collaboration reinforces Heitman’s growing role in the Australian market and supports HESTA’s commitment to delivering sustainable, diversified investment strategies for its members, aligning with long-term growth objectives.
