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

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

Disposals⁶⁶

• Hinkler Central, Bundaberg QLD.

100% of reportable assets included in this report are based in Australia, with information correct as at 30 June 2024.⁶⁷

Table 16: QIC Real Estate asset portfolio overview

Table 17: QIC Real Estate Australian asset portfolio

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

⁶⁶ Excludes some peripheral asset sales and acquisitions.
⁶⁷ Excludes some peripheral asset sales and acquisitions.
⁶⁸ One property owned in a joint venture with Scentre Group, being Coomera Town Centre (QLD).
⁶⁹ Two properties owned in a joint venture with Pacific Group of Properties being Werribee (VIC) and Epping (VIC). One property owned in a joint venture with MAB Corporation being Merrifield City (VIC).
⁷⁰ Claremont Quarter (WA) is owned in a joint venture with Hawaiian. Claremont Quarter. Claremont Quarter has since been divested, however this divestment falls outside the reporting period of this Report. 

The investment objective of both the QIC Property Fund (QPF) and QIC Town Centre Fund (QTCF) is to outperform the Australian retail real estate market by investing in a portfolio of larger income producing growth retail properties focused in and around Australia’s major cities. QPF and QTCF’s primary strategy is to acquire, develop and actively manage mainly dominant Australian retail-led town centre assets that are projected to provide (or can be positioned to provide) consistent growth over the longer term while delivering stable income returns.

At the heart of this strategy are highly productive retail-led town centre assets complemented by strong infrastructure connections (e.g. roads, parking, public transport nodes), providing a strong foundation to attract mixed-uses. Through active management, QPF and QTCF create vibrant, mixed-use destinations at the heart of each community they are located within.

QPF and QTCF are evolving their retail assets into multidimensional day and night destinations that combine commerce, health services, education, hotels and accommodation, and civic and cultural experiences, responding to the changing way people want to live, work, and shop.

By incorporating a broader mix of uses, QPF and QTCF’s town centre strategy aims to unlock embedded value and uplift productivity, while securing each asset’s long-term position within the community it serves.

The QIC Active Retail Property Fund (QARP) seeks to generate long-term core plus returns by investing in a portfolio of high-quality neighbourhood shopping centres, subregional shopping centres and large format shopping centres. This strategy seeks to capitalise on the resilience and long-term demand for retail properties in key locations that serve essential consumer needs, applying an active management approach to relatively more liquid assets with defensive income yield characteristics.

In addition to submitting the retail assets in our QARP portfolio for Green Star Performance Portfolio Ratings and GRESB, through ESG initiatives, including onsite solar projects, QARP has successfully transitioned to a position of net zero carbon emissions ahead of its original 2028 target⁷¹.

⁷¹ QARP’s net zero carbon emissions operating status relates to existing assets held in the fund as at 30 June 2024 which are 100% owned and managed, using a Climate Active certification pathway and definition of operational carbon emissions whihc includes scope 1, scope 2 and some scope 3 (noting certification is not yet complete and is due for finalisation in Q2 FY25).  Note that while the asset level Climate Active certifications for Domain Central, QLD, Craigieburn Junction, VIC and Bathurst City Centre, NSW, once finalised, will apply from 1 July 2023, QARP’s stated date for having achieved net zero carbon emissions is 1 April 2024 onwards to allow for the Fund’s divestment of Hinkler, QLD on 27 March 2024.  Any future asset acquisitions into the Fund will be assessed for their ability to achieve net zero carbon emissions, noting that at least 12 months of operating data covering a full financial year would be required before certification could be contemplated and achieved.

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.

In addition to submitting the retail assets in our QACPF portfolio for Green Star Performance Portfolio Ratings and GRESB, several key ESG initiatives are being advanced to help embed environmental, social and governance considerations across all our operational assets. QACPF has also developed a comprehensive roadmap to achieve net zero carbon emissions by 2028.

The QIC Office Fund (QOF) comprises a 50% ownership of four office buildings and a development site located within the Brisbane CBD, which are predominately leased to the Queensland State Government. The portfolio is well positioned to continue to provide secure income streams and benefit from nearby projects which will enhance precinct infrastructure and amenity.