First State Super wins Victoria’s Land Registry auction

First State Super wins Victoria’s Land Registry auction

7 September 2018

NSW-based superannuation fund First State Super has paid $2.86 billion for the right to operate for 40 years the land titles and registry functions of Land Use Victoria, reports the AFR.

Land Use Victoria is charged with keeping records of land ownership in the state.

First State Super outbid a consortium that included South Australia’s registry proprietor Macquarie Infrastructure and Real Assets, with Canada’s PSP Investments and Australian industry superannuation fund Sunsuper.

First State Super’s head of income and real assets Damien Webb said the key elements the company leased focused on the “transactional side” of the registry, including transactions involving conveyancing and property title searches, says The Age.

The government confirmed it would retain an “oversight role” over the private operator by keeping the Registrar of Titles under state control.

The state will also retain ownership of other services including subdivisions, Valuer-General Victoria, Land Information and Spatial Services, Government Land Advice and Co-ordination and the Victorian Government Land Monitor.

The deal, which follows recent land titles deals in NSW and South Australia, is structured to exclude subdivisions (unlike NSW) and valuation services (unlike SA).

“This is an outstanding result and another vote of confidence in the Victorian economy, one that will deliver a major boost to our already unprecedented investment in schools, hospitals, road and rail,” says Victoria’s Treasurer Tim Pallas.

First State Super has 773,527 member accounts — nurses, midwives, teachers, police, firefighters and paramedics — and $63.7 billion funds under management, says Business Insider.

Michael Dwyer, First State Super’s CEO, says the fund has a strong connection to Victoria with more 180,000 members there.

“We also have a number of significant investments in the state including agriculture, commercial property and infrastructure such as the new Bendigo Hospital,” he said.

“We see land registries as critical economic infrastructure with strong investment fundamentals. Victoria has been the best performing economy in Australia, underpinned by strong population growth.

“First State Super has a demonstrated track record of success in managing large investments and public infrastructure.”

“This is an outstanding result and another vote of confidence in the Victorian economy, one that will deliver a major boost to our already unprecedented investment in schools, hospitals, road and rail,” says Victoria’s Treasurer Tim Pallas.