Aware Super has announced the launch of a new property platform to actively manage its directly owned Australian living, industrial, office and mixed-use property portfolio.
The $155 billion super fund has ambitious plans for the platform, Aware Real Estate, which it intends to grow from $1.7 billion in assets currently to $7 billion over the next five years.
“The Aware Real Estate business is a reflection and reinforcement of Aware Super’s commitment to delivering strong risk-adjusted returns to its members,” said Aware Real Estate CEO, Michelle McNally.
The real estate portfolio currently consists of 11 operational assets with 99 per cent occupancy as well as eight development sites in various stages of planning.
Ms McNally, who was named founding CEO in June, said the super fund was excited to further expand in the Australian market, initially focusing on industrial, living, and mixed-use sectors.
She also noted that being a leader in the build-to-rent sector is one of the core strategic pillars of Aware Real Estate’s investment strategy. Aware currently has 500 apartments in its residential portfolio with a further 1,200 apartments in the pipeline.
Supporting Aware’s essential worker housing program, which offers eligible residents rent at 80 per cent of the market rate, was said to be a key consideration of the build-to-rent strategy.
“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.”
According to Aware Super deputy CIO, Damien Webb, the new platform will help reduce member fees, diversify its real estate holdings, and drive stronger returns for 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 per cent by 2025,” he said.
The super fund said that the real estate investment manager, Altis Property Partners — which was acquired by global investment manager Barings last month — is playing a foundational role in establishing Aware Real Estate by providing invaluable support services.
