Who we are
2020 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, QICGRE 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.

QICGRE 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.

QICGRE 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 2020.

Asset Portfolio

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

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

  • Divestment of the Q&A Centre, Brisbane
  • Divestment of Noosa Civic.

100% of reportable assets included in this report are based in Australia, with information correct as at 30 June 2020.

RETAIL ASSETS

Number of assets

QLD

131

NSW

4

VIC

62

ACT

1

WA

13

COMMERCIAL AND OTHER ASSETS

 

QLD

5

NSW

1

SA

1

FUTURE RETAIL SITES

1

 

1Two properties owned in a joint venture with Scentre Group
2Two properties owned in a joint venture with Pacific Group of Properties

3 Owned in a joint venture with Hawaiian

AUSTRALIAN ASSET PROFILE
Measure 30 June 2020
Gross Lettable Area (Retail) 1,397,000m2
Net Lettable Area (Office) 141,000m2
Total Lettable Area 1,538,000m2
Gross Assets Under Management $13.3b
Funds Under Management $11.0b
Retail Sales $8.2b

Reportable data for Australian assets only, as at 30 June 2020.

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.

For ~30 years we have maintained our strong conviction in the retail real estate sector, because retail assets:

  • Are expected to provide sustainable returns, a stable income stream and consistent growth over the long-term through active management strategies
  • Respond to diverging trends across discretionary and non-discretionary consumer spending, presenting us with opportunities to capture value throughout cycles, including a core focus on ESG and sustainability
  • Provide the opportunity to repurpose our core retail offer to deliver products aligned with macro consumer preferences, as well as introducing complementary real estate uses, unlocking embedded value and providing an uplift in productivity
  • Capture growth through strong local population demographics, an extremely diversified pool of tenants and retail sectors, including non-discretionary spending and mixed uses.

Our assets generally comprise the following attributes:

  • Are strategically located
  • Benefit from a strong planning regime and/or significant barriers to entry for additional supply and competition
  • Enjoy prominence within their respective markets, or can increase market share through active management, development, asset creation and value add opportunities
  • Offer stable and predictable income streams and identifiable risk characteristics over the long-term
  • Benefit from ownership interests that provide an appropriate level of control over the strategic direction of the asset.

Across the portfolio our asset management and operational teams are continually looking for ways to integrate sustainability and 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, 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 offers defensive income yields with value-add opportunities 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 and GRESB, a number of key ESG initiatives are being progressed for this portfolio, including its most recent project on solar panels, to reach our goal of embedding environmental, social and governance considerations within all of our operational assets.

QIC Office Fund

The QIC Office Fund (QOF) currently comprises a 50% ownership of four office buildings and a development site located within the Brisbane CBD. The office buildings are 99.4% leased (by income) to the Queensland State Government.

The Fund strategy is to diversify and construct a portfolio of well-located and high-quality Australian office assets which will meet the evolving demands of the workforce.

Since acquisition of the portfolio in 2013, sustainability 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 an open-ended diversified fund that provides institutional investors access to a portfolio of high-quality assets with defensive income yields and value add opportunities. Applying an active management approach, QACPF has the flexibility to drive returns by adjusting its exposure across all commercial property sectors including retail, office, industrial and select alternative classes including healthcare.

The investment philosophy complements larger core asset exposures that trade less frequently and deliver lower risk adjusted income yields and total returns.

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

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