Monday, 8 September 2022
Aware Super today launched Aware Real Estate with the aim of hosting $7 billion in assets within five years as part of the fund’s ongoing commitment to lower fees and drive strong returns for its 1.1 million members.
The property platform will actively manage the super fund’s directly-owned Australian living, industrial, office and mixed-use property portfolio. The portfolio currently consists of 11 operational assets with 99% occupancy, and eight development sites in various stages of planning.
Aware Real Estate’s Chief Executive Officer, Michelle McNally, said: “The Aware Real Estate business is a reflection and reinforcement of Aware Super’s commitment to delivering strong risk-adjusted returns to its members.
“We already have a $1.7 billion real estate portfolio, which we’re excited to further expand in the Australian market with an initial focus on industrial, living, and mixed-use sectors.”
Aware Super’s Deputy Chief Investment Officer, Damien Webb, said creating a market-leading property platform in Australia would further reduce members’ fees, diversify the fund’s real estate holdings and deliver the strong returns needed to strengthen the retirement security of its members.
“As part of our strategy to lower fees and deliver strong returns for our 1.1 million members, we’re aiming to increase our internally-managed portfolio across all asset classes to 50% by 2025,” he said.
Real estate investment manager Altis Property Partners, a long-running partner of Aware Super, is playing a foundational role in establishing Aware Real Estate by providing invaluable support services.
Altis Partner Alastair Wright said: “Altis has a strong track record in delivering quality projects with Aware Super, creating places that allow people and businesses to thrive.”
Ms McNally said one of the core strategic pillars of Aware Real Estate’s investment strategy was to be a leader in the build-to-rent sector.
She added with 500 apartments in the residential portfolio spread across New South Wales, Victoria, Western Australia and ACT, and a pipeline of a further 1200 apartments, Aware Real Estate would grow and develop quality apartments in locations supported by infrastructure and amenities, and which would deliver strong underlying returns.
A key consideration in the build-to-rent strategy is to support Aware Real Estate’s essential worker housing program, which Aware Super started in 2018 to offer eligible residents rent at 80% of the market rate.
“Our focus is on sites close to important urban infrastructure like hospitals, schools and transport, to make sure essential workers can live closer to work and reduce commuting time,” Ms McNally said.
“By offering discounted rents to essential workers in highly-desirable buildings, we not only increase the values attached to these sites, but attract reliable tenants who have employment stability and feel connected to the product.”
Renders for properties listed below are available upon request
50-52 Queens Road, Melbourne: Aware Real Estate has submitted a development application (DA) for 344 apartments for the project, which is located in the St Kilda Road precinct, close to major hospital and education facilities. The building will feature rooftop amenities, landscape and community gardens and direct access to major public transport routes to the city.
Mamre Road Precinct, Sydney: Aware Real Estate is a major landlord with 24ha of prime industrial completed at First Estate Industrial which is next to The Yards, a 77ha master-planned estate currently in development. As a joint venture with Frasers Property Industrial, this property will target the first 6 Star Green Star Communities rating. With 70% committed, it is attracting leading brands across life sciences, manufacturing, and warehouse and logistics. This site is due for completion at the end of 2023.
Illoura Place, Liverpool, Sydney: Located in a prominent, high-profile corner in the heart of Liverpool, a DA has been submitted for a mixed-use, iconic landmark tower development with leading ESG initiatives. This project will consist of 314 quality apartments, 8,000 sqm A-Grade office accommodation and lively ground-floor retail. Under the NSW Government’s Metropolis of Three Cities plan, Liverpool is set to emerge as a thriving CBD, attracting new business, investment and job opportunities from significant infrastructure investment. Located adjacent to a major health, education and innovation precinct, together with rising demand for housing, it places the development at the heart of Aware Real Estate’s strategy to invest in thriving and diverse communities.