2019 ESG report: Who we are

QIC was created in 1991 by the Queensland government to serve its long-term investment responsibilities and has grown into a leading long-term specialist manager in alternatives.

As one of Australia’s largest institutional fund managers, QIC GRE has during the past 25 years acquired and developed a substantial portfolio of dominant regional shopping centres and CBD commercial buildings.

We have headquarters in Brisbane, Queensland, and our Australian real estate portfolio comprises assets in Queensland, Victoria, New South Wales, South Australia, Australian Capital Territory and Western Australia. We also manage a portfolio of retail assets in the US.

During the reporting period of FY18/19, changes to the role of QIC Global Real Estate Managing Director comprised:

  • Retirement of QIC Global Real Estate Managing Director, Steven Leigh in March 2019
  • The role of QIC Global Real Estate Acting Managing Director being held by David Asplin between March and May 2019
  • Commencement of Michael O’Brien in the role of QIC Global Real Estate Managing Director in May 2019.

QIC GRE continues to be considered by our clients as one of Australia’s leading real estate investment managers, as consistently supported by external surveys on unlisted property managers.

Fund performance continues to be solid with many QIC GRE Funds outperforming benchmarks. QIC’s global real estate portfolio was valued at in excess of $16 billion as at June 2019.

QIC GRE is a registered trademark and is a business division within QIC Limited (ACN 130 539 123).

For more details on our performance, please refer to the QIC Annual Report 2019.

Asset Portfolio

This report covers the physical assets owned and/or managed by QIC GRE in Australia, encompassing those relevant properties held under the QIC Property Fund, QIC Shopping Centre Fund, QIC Active Retail Portfolio Fund, QIC Government Office Fund and QIC Australia Core Plus Fund.

During the reporting period, changes to our asset portfolio comprised of:

  • Acquisition of 50% interests in two Victorian assets, Epping and Werribee Shopping Centres, which are managed by QIC GRE and held in a joint venture arrangement with Pacific Group of Properties.
  • Completion of construction and launch of Westfield Coomera Shopping Centre in Queensland, which is managed by and owned in 50% joint venture arrangement with Scentre Group.

100% of reportable assets included in this report are based in Australia, with information correct as at 30 June 2019.

RETAIL ASSETS Number of assets
[Internal only]
 QLD 141  Westfield Helensvale*, Westfield Coomera*, Noosa Civic, Grand Central, Hyperdome, Robina Town Centre, Domain Central, Hinkler Central, Marsden Park, Big Top Shopping Centre, Kippa-Ring Shopping Centre, The Village Upper Mt Gravatt, Forest Lake Shopping Centre, Nerang Mall
NSW  4 Castle Towers, Westpoint, Bathurst City Centre, Pittwater Place
VIC 62  Eastland, Watergardens Town Centre, Woodgrove, Werribee*, Epping*, Pakenham Place
ACT 1 Canberra Centre
WA 13 Claremont Quarter*
COMMERCIAL AND OTHER ASSETS    
QLD 6 141 Queen Street, 5 QGOF Commercial Buildings
NSW  1 1 Chandos Street
SA  1 301 Grand Junction Road
 FUTURE RETAIL SITES    
VIC Merrifield City

1 Two properties are owned in a joint venture with Scentre Group
2 Two properties are owned in a joint venture with Pacific Group of Properties
3 Owned in a joint venture with Hawaiian

AUSTRALIAN ASSET PROFILE
Measure 30 June 2019
Gross Lettable Area (Retail) 1,428,000m2
Net Lettable Area (Office) 174,000m2
Total Lettable Area 1,602,000m2
Gross Assets Under Management $16.1b
Funds Under Management $13.5b
Retail Sales $8.6b

Reportable data for Australian assets only, as at 30 June 2019

Note: as an unlisted company, details such as operating costs and economic value retained are commercially sensitive, and therefore excluded from this report.

QIC Property Fund and QIC Shopping Centre Fund

The QIC Property Fund (QPF) and QIC Shopping Centre Fund (QSCF) were established with a clear objective to outperform benchmarks by delivering sustainable income and capital returns, and by adopting a sector-specific strategy to invest in dominant retail real estate assets that generally comprise the following attributes:

  • Located in strategic locations
  • Exhibit favourable demographics
  • Provide potential for value-add opportunities through active management and development
  • Supported by ‘town-centre’ infrastructure

Central to our active management approach of the retail portfolio shared by these two funds is a significant asset creation strategy aimed at transforming our centres into integrated lifestyle, retail and entertainment destinations through staged developments.

QPF also maintains a residual exposure to existing high-grade office assets which continue to be tactically managed, including development and disposition.

Across the portfolio our asset management and operational teams are continually looking for ways to integrate ESG into their daily work. Our commitment also extends to the delivery of our asset creation projects, which focus on ensuring our local communities share in the socio-economic benefits each project delivers.

QIC Active Retail Property Fund

The QIC Active Retail Property Fund (QARP) is a portfolio of supermarket anchored sub-regional and neighbourhood shopping centres and high-quality large format retail centres that are dominant, or have the potential to become dominant, in their trade area.

This retail sub-sector has a low exposure to impacts from online sales, and opportunities for growth are targeted through active management, leasing and gradual small-scale development.

Established in June 2014, the Fund includes active management of four retail assets across Queensland and New South Wales.

As well as initiating submission of retail assets in our QARP portfolio for Green Star Performance Portfolio Ratings number of key ESG initiatives are being progressed for this portfolio in order to reach our goal of embedding environmental, social and governance considerations within all of our operational assets.

QIC Government Office Fund

QIC’s Government Office Fund (QGOF) is a portfolio of five commercial buildings fully occupied by the Queensland State Government and located within the Brisbane CBD.

QGOF provides investors with an attractive return profile, secured by long term leases with fixed annual reviews, and enhanced by active asset and development management.

Since acquisition of the portfolio in 2013, sustainability has and continues to be a major focus across the portfolio. Strong results have been achieved through the optimisation of existing plant and equipment, the investment in new technologies and the incorporation of best practice for building operation and performance.

QIC Australia Core Plus Fund

The QIC Australia Core Plus Fund (QACPF) is a diverse portfolio of Australian-based retail, commercial and industrial assets. Using an active management approach, QACPF invests in a portfolio of quality Australian real estate assets underpinned by strong core returns through rental income and growth, and repositions assets to capture market opportunity by leveraging QIC’s experience and active management approach.

The individual asset strategies focus on the reinvestment of capital to ensure the portfolio remains relevant to its demographics and catchment area. Further, the Fund remains committed to integrating ESG principles where appropriate over the long term, with improvements to be captured under the Green Star Performance Portfolio Ratings initiated in 2018.

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ESG 2019