Aware Super has formed a strategic partnership with Delancey Real Estate to invest up to an initial c. €1.2b in UK property.
The platform aims to invest in UK real estate to deliver attractive risk-adjusted returns for Aware Super’s 1.1 million members. Its initial focus is on prime Central London office properties, leveraging strong demand for Grade A assets amid significant market changes and a slowdown in new developments due to the COVID-19 pandemic.
Demand for high-quality, sustainable office spaces remains strong, while the platform is also exploring opportunities in undervalued retail, logistics, and mixed-use properties for potential cyclical returns.
Sustainability is central to its strategy, integrated throughout the investment lifecycle from acquisition to management and divestment. The platform can acquire stabilised assets, fund developments, and consider portfolio and corporate acquisitions.
Aware Super already holds a 22% stake in Get Living, a leading operator of build-to-rent neighbourhoods, and will continue sourcing direct investments to expand its European property portfolio.
Aware Super Head of International and Deputy Chief Investment Officer Damien Webb said: “Since opening our first international office in London in November 2023 we have been encouraged by the growing strength of the UK economy. By originating exciting deals across real estate, infrastructure and private equity we are building a balanced portfolio of resilient assets which we anticipate delivering strong returns for our 1.1 million members back in Australia.”
Jamie Ritblat, Founder and Chairman of Delancey, said: “Expanding our relationship with Aware Super strengthens our partnership, combining the expertise and track records of both firms, with the capital and capability to execute. This underlines our status as a trusted partner for institutional investors looking to access opportunities in UK real estate. Amid asset repricing driven by interest rate and regulatory changes, we see an attractive entry point in a weakened office market. The focus will start with prime Central London offices to create a liquid, sustainable, and resilient portfolio, with investments in retail and logistics sectors in prime UK locations under consideration.”
Aware Super Head of Property Alek Misev said: “A key theme of our global real estate strategy is anticipating future trends and making counter-cyclical investments. This has reaped strong rewards and we believe that under-valued Central London offices also fit this profile.”
Aware Super Senior Investment Director Property Mathieu Elshout said: “There is a sharp supply-to-demand imbalance in the London office market which is creating an unprecedented flight to quality for high-quality office space in the best locations and with compelling sustainability credentials.
This investment drive overall is targeted at real estate, infrastructure and private equity opportunities. The Fund recently announced investments into the UK’s leading post-transition green energy major Octopus Energy and London-headquartered bandwidth and data centre connectivity leader euNetworks.
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