According to The Australian newspaper, investment agency Future Fund currently holds a $2 billion stake in American property, which is nearly half of its entire portfolio.
Established in 2006, the Future Fund Act was agreed to ensure that future Australian governments would benefit from the expected investment returns brought in by the Future Fund. The agency has recently invested a further $350 million stake in the US property market through a partnership formed with Boston-based company Berkshire Property and has made a $59 million investment in The Howard Hughes Corporation.
This latter company, which is based in Dallas, specialises in mixed-use properties and community developments across America, and also owns and manages residential and commercial buildings in 18 different states.
Future Fund's increase in its investment in the US property market is aimed at exploring the effects of an increased international portfolio of property. Seemingly America has been deemed a sound and potentially prosperous investment opportunity, which is an opinion being echoed worldwide. American investment property has increased its appeal to international investors with the lure of low upfront injections of funds, rising property values, low fixed mortgage rates, and evidence of growth in the property market.
The move from Future Fund comes as the company makes plans to expand investments into tangible products, with property falling under this umbrella. This form of investment from the Future Fund has gone up 3.7%, from 12.8% to 16.5%, in just a year.
