Pension fund Aware Super, Sydney, formed a strategic partnership with Delancey Real Estate, a U.K. investment and development manager, to invest up to an initial £1 billion ($1.3 billion) in U.K. property, according to a news release.
The platform’s initial focus will be on Central London office properties in prime locations. According to Aware Super, this approach capitalizes on strong demand from investors for high-quality office space following the rebound from the COVID-19 pandemic.
Alongside these investments, the partnership is also exploring opportunities in U.K. retail, logistics, and mixed-use properties. Sustainability will be a central focus on the strategy, specifically decarbonization.
“Since opening our first international office in London in November 2023 we have been encouraged by the growing strength of the U.K. economy,” said Damien Webb, Aware Super’s head of international and deputy chief investment officer in the news release.
“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.”
Aware Real Estate manages A$2.4 billion ($1.6 billion) in assets, and Aware Super as a wider group has A$170 billion in assets.
The partners could potentially acquire stabilized assets, fund development projects and assist with recapitalizations of existing capital structures. Single asset, portfolio and corporate acquisitions would all be considered.
Aware Super already owns a 22% stake in Get Living, a U.K. owner and operator of large-scale build-to-rent neighborhoods which was founded by Delancey.
