Aware Super has formed a strategic partnership with Delancey Real Estate to establish a £1bn UK property platform.
The partnership’s initial focus will be on Central London office properties in prime locations, to capitalise on “strong demand” from investors and occupiers for Grade A assets “amid significant structural and regulatory change in the market and its repricing”.
The platform will also explore opportunities in high-quality, undervalued UK retail, logistics and mixed-use properties, and has the ability to acquire stabilised assets, fund development projects and assist with recapitalisations of existing capital structures. Single asset, portfolio and corporate acquisitions will all be considered.
Damien Webb (pictured), head of international and deputy chief investment officer at Aware Super, 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, added: “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. 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.”
Alek Misev, head of property at Aware Super, 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.”
Mathieu Elshout, senior investment director property at Aware Super, added: “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.
“With the UK property market having re-priced more quickly than others, this provides an exciting window of opportunity for the Aware Super and Delancey partnership platform to invest in quality, sustainable Central London office real estate which aims to deliver strong risk-adjusted returns to our members.”
