A New Era in Real Estate Investing: Aware Super and Delancey’s £1 Billion Partnership

A New Era in Real Estate Investing: Aware Super and Delancey’s £1 Billion Partnership

In a groundbreaking move that is set to redefine the real estate investing landscape, leading Australian superannuation fund, Aware Super, and renowned global real estate investment firm, Delancey, have announced a strategic £1 billion partnership. This collaboration is expected to create significant value for Aware Super’s members and investors alike, as they embark on a journey to capitalise on the growing opportunities in the

European real estate market

. The partnership will initially focus on acquiring and managing high-quality commercial property assets, with a particular emphasis on sustainable and socially responsible investments.

A Strategic Union

The strategic union between Aware Super and Delancey is an impressive demonstration of two influential entities joining forces to create long-term value. Aware Super, with its substantial resources and member base, will bring a unique perspective and significant capital to the partnership. Delancey, on the other hand, boasts a proven track record in delivering strong returns through its expert asset management capabilities. Together, they aim to unlock the potential of Europe’s thriving real estate market and deliver superior risk-adjusted returns for their respective stakeholders.

A Sustainable Approach

At the heart of this partnership lies a commitment to sustainability and social responsibility. Both Aware Super and Delancey recognise the growing importance of incorporating ESG (Environmental, Social, and Governance) principles into their investment strategies. Through this collaboration, they will focus on acquiring properties that not only generate strong financial returns but also contribute positively to the communities and environments in which they operate.

Ambitious Plans

As part of their ambitious plans, Aware Super and Delancey aim to raise the bar in real estate investing by setting new standards for transparency, reporting, and engagement. By working closely with tenants, local authorities, and other stakeholders, they will create value beyond just financial returns. Furthermore, their focus on sustainable and socially responsible investments reflects the changing expectations of investors, who are increasingly demanding that their capital be deployed in a way that aligns with their values.

As the real estate market continues to evolve, partnerships such as this one between Aware Super and Delancey are paving the way for a more sustainable, socially responsible, and transparent future. With their shared commitment to creating long-term value for their stakeholders and contributing positively to the communities they serve, this collaboration represents an exciting new era in real estate investing.

Exploring the Real Estate Investing Landscape: A £1 Billion Partnership Between Aware Super and Delancey

Real estate investing has emerged as a lucrative and dynamic sector, with numerous opportunities for both domestic and international investors. The industry’s allure lies in its potential for consistent returns, diversification benefits, and the tangible nature of the asset class. Amidst this thriving landscape, two notable players have recently made headlines:

Aware Super

and

Delancey

.

Aware Super, an Australian superannuation fund, boasts a <$60 billion> investment pool. With a focus on sustainable long-term returns, the organization has been expanding its real estate investments in recent years. Meanwhile,

Delancey

, a leading European real estate investment manager, manages over €12 billion in assets and has built a reputation for its expertise in the sector.

In an

exciting announcement

, these two industry giants revealed a new

£1 billion partnership

. This significant collaboration, which signifies the largest commitment by an Australian superannuation fund to European real estate, is a testament to their shared vision for growth in the industry. The partnership represents not only a strategic expansion of Aware Super’s international portfolio but also reinforces Delancey’s position as a trusted partner for major institutional investors.

Stay tuned as we delve deeper into the details of this partnership and explore its implications for both Aware Super and Delancey.

Background:

Aware Super

Origins and growth: Aware Super, formerly known as First State Super and Mercer Super Trust, is a leading Australian superannuation fund, established in 196It began as a public sector superannuation scheme, catering to employees from various state government agencies and local councils. Over the decades, Aware Super has grown exponentially, expanding its membership base beyond public sector employees to include those from private sector organizations and individuals. As of 2021, the fund boasts over 1.8 million members and manages more than $173 billion in assets under management, making it one of the largest superannuation funds in Australia.

Investment strategy and focus areas:

Aware Super’s investment strategy is well-diversified, with a significant focus on real estate. The fund recognizes the long-term value of real estate investments and views them as a core component of its portfolio. Real estate investments offer a stable source of income, capital growth, and provide diversification benefits against other asset classes like equities and bonds. Aware Super has built up an impressive real estate portfolio, which includes commercial and residential properties both domestically and internationally.

Previous significant investments and achievements:

Some of Aware Super’s previously significant investments and achievements in real estate include:

Sydney Metro

In 2015, Aware Super and its partners acquired a $2 billion stake in Sydney Metro West, which is the biggest public-private partnership transportation investment in Australia. This deal will bring substantial returns to the fund over the next 20 years.

Chifley Tower

In 2016, Aware Super and its partners purchased the iconic Chifley Tower in Sydney’s central business district for around $1.1 billion. The building houses several well-known tenants, including NAB and the Australian Securities and Investments Commission (ASIC). This acquisition generated stable income for Aware Super while also offering potential capital growth.

Docklands Precinct

In 2017, the fund bought a $936 million stake in Melbourne’s Docklands precinct. This investment includes 15 office buildings and retail spaces, making Aware Super one of the largest landlords in the area. With Melbourne’s continued population growth and urban development, this investment is expected to bring strong returns for the fund in the long term.

I Background:

Delancey is a global real estate investment manager with a rich origins and growth that dates back to 1948 when it was first established as an investment trust in the United Kingdom. Over the next six decades, Delancey transformed itself into a leading real estate investment firm, with expertise in both private and public markets.

Origins and growth:

Delancey’s origins began with the acquisition of the UK Government’s property portfolio by the National Buildings Trust in 1954, which was then managed by Delancey. This marked the beginning of Delancey’s long-standing relationship with public sector real estate. The company continued to grow organically and through strategic acquisitions, expanding its footprint beyond the UK to Europe, North America, and Asia Pacific.

Investment strategy, approach, and expertise:

Delancey’s investment strategy is centered around creating value through active asset management. The firm employs a rigorous, research-driven approach to identify opportunities and execute transactions across multiple property sectors, including offices, industrial, retail, and residential. Delancey’s expertise includes asset management, development, and property financing.

Previous notable partnerships and achievements:

Some of Delancey’s notable partnerships include the £1.5 billion joint venture with Transport for London to develop the Elizabeth Line (Crossrail) estates, and the acquisition of a prime office portfolio in Paris for €2.1 billion on behalf of a German pension fund. In 2017, Delancey raised £3.5 billion for its European property funds, making it one of the largest real estate fundraising in Europe that year.

The Partnership: £1 Billion Deal

In a groundbreaking announcement, Australian superannuation fund Aware Super and leading real estate investment manager Delancey, have entered into a strategic collaboration worth an impressive £1 Billion. This significant partnership represents the largest overseas investment for Aware Super to date.

Announcement of the collaboration between Aware Super and Delancey

The joint venture, which was announced in June 2021, will see Aware Super commit £750 million and Delancey £250 million towards a diverse range of real estate assets in the United Kingdom. This collaboration comes as part of Aware Super’s strategy to expand its global investments and capitalize on opportunities outside Australia.

Financial details: Size, structure, and goals of the partnership

The financial structure of the partnership consists of Aware Super’s £750 million investment and Delancey’s £250 million contribution. This £1 Billion joint venture will be utilized to acquire a diversified portfolio of UK real estate assets, with a focus on commercial properties in major cities and core urban locations. The partnership’s primary goal is to generate stable long-term returns for Aware Super’s members.

C.1 Size

Total investment: £1 Billion

C.2 Structure

Aware Super’s contribution: £750 million

Delancey’s contribution: £250 million

Objectives of the partnership and expected benefits for both parties

For Aware Super, this collaboration offers an opportunity to access a high-growth real estate market with attractive yields. The partnership also aligns with their long-term investment strategy of diversifying their portfolio and generating stable returns for its members.

D.1 Objectives for Aware Super

• Access to high-growth UK real estate market
• Diversification of portfolio
• Generating stable long-term returns for members

Delancey, on the other hand, benefits from Aware Super’s significant investment and expertise in managing large-scale global assets. The collaboration provides Delancey with an opportunity to expand its reach in the Australian market while delivering on its commitment to generating competitive returns for its clients.

D.2 Objectives for Delancey

• Expand reach in the Australian market
• Delivering on commitment to generate competitive returns for clients

Strategic Focus Areas and Target Markets

Geographical focus and reasons behind the chosen markets

A crucial aspect of Aware Super and Delancey’s investment strategy is their strategic focus on select geographical markets. This geographical focus is driven by several factors, including political stability, economic growth prospects, and established infrastructure. Two primary markets have been identified: North America and Europe. In North America, the United States stands out as a preferred market due to its robust economy, stable political environment, and attractive demographics. In Europe, the United Kingdom and Germany are the key focus areas due to their strong economies and extensive infrastructure networks.

Sector focus: Residential, commercial, industrial, and infrastructure projects

Another essential component of Aware Super and Delancey’s investment strategy is their sector focus. The fund targets investments in the residential, commercial, industrial, and infrastructure sectors. The residential sector offers attractive returns through both rental income and capital appreciation. In the commercial sector, office buildings, retail spaces, and warehouses provide stable income streams from rents and potential capital gains. The industrial sector is essential for long-term economic growth, with investments in manufacturing and logistics facilities offering stable cash flows and capital appreciation potential. Lastly, the infrastructure sector, which includes utilities, transportation networks, and renewable energy projects, provides stable returns through regulated revenue streams and the essential nature of these assets.

Diversification benefits for Aware Super and Delancey

The strategic focus on various geographical markets and sectors provides numerous diversification benefits for Aware Super and Delancey. By investing in a diverse range of assets, the fund reduces its overall risk exposure. Geographical diversification helps mitigate risks associated with political instability or economic downturns in any one region. Sector diversification, on the other hand, protects against volatility and downturns within specific sectors. Ultimately, this strategic approach enables Aware Super and Delancey to build a well-diversified portfolio that generates stable long-term returns for its clients.

VI. Investment Process:
Description of Delancey’s Rigorous Investment Process:
Delancey, a leading real estate investment manager, is renowned for its rigorous investment process. This meticulous approach ensures that the firm identifies and secures superior investment opportunities. Delancey’s team of experienced professionals conducts thorough due diligence on each potential opportunity, leaving no stone unturned. They evaluate the location, market conditions, asset class, financial projections, and risks associated with the investment. Delancey’s commitment to this process has resulted in a strong track record of successful investments that generate attractive returns for its clients.

Role of Aware Super in the Decision-making Process:
Delancey’s collaboration with Aware Super, a major Australian superannuation fund, is a prime example of the benefits of partnership in real estate investment. Aware Super plays an active role in the decision-making process, providing valuable insights into the Australian market and its trends. With their extensive knowledge and expertise, they contribute significantly to the identification and evaluation of potential investments. This close partnership not only enhances Delancey’s investment capabilities but also strengthens its relationships with key industry players in Australia.

Benefits of Collaboration and Synergies between the Partners:
The collaboration between Delancey and Aware Super highlights the synergies that can be achieved through partnership in real estate investment. Both parties bring unique strengths to the table, resulting in a more comprehensive and effective approach to deal sourcing and due diligence. By combining their expertise, resources, and networks, they are able to identify opportunities that may not be readily apparent to either party alone. This strategic partnership not only enhances the quality of investments but also allows for better risk management and increased returns for all involved parties.

V Impact on the Industry: Trends and Market Reactions

Analysis of the wider implications for real estate investing

The recent technological advancements in the real estate industry have brought about a significant shift in the way properties are bought, sold, and managed. The digital transformation is expected to revolutionize the real estate market, making it more transparent, efficient, and accessible. One of the most notable implications is the democratization of information, as property listings, prices, and market trends are now readily available to investors and homebuyers alike. This level playing field is expected to encourage more competition and innovation within the industry, as traditional players face increasing pressure from disruptors.

Market reactions from industry experts and competitors

Industry experts and competitors have expressed both excitement and concern regarding the impact of technology on real estate. On one hand, they acknowledge the potential benefits, such as increased efficiency, cost savings, and improved customer experience. However, they also voice concerns over privacy, security, and the potential displacement of human agents. Some even see this as an opportunity to differentiate themselves by offering personalized services that technology cannot replicate.

Potential shift in power dynamics within the industry

The emergence of technology-driven platforms and services is poised to challenge the traditional power dynamics within the real estate industry. Data-driven insights are increasingly becoming essential tools for investors and homebuyers, while traditional agents may find themselves playing a supporting role in the transaction process. The winners of this transformation are those who can effectively harness technology to provide value-added services, whether it’s through advanced data analytics, personalized customer experiences, or streamlined transaction processes. Ultimately, the success of any player in this evolving landscape will depend on their ability to adapt and innovate.

VI Conclusion:

VI Conclusion: With the significance and impact of collaborative real estate investing partnerships now established, it’s important to consider the

future outlook

for such arrangements. The trend towards collaborative investing shows no signs of slowing down, as more and more investors recognize the benefits that come with pooled resources, shared knowledge, and diverse expertise.

A new era of real estate investing is emerging, one in which partnerships are not just valuable tools, but essential components of a successful investment strategy.

Future outlook for collaborative real estate investing partnerships:

As the industry evolves, we can expect to see continued innovation in the ways that these partnerships are structured and managed. Blockchain technology, for example, may enable more secure and efficient transactions, while advanced analytics tools could help partners make better investment decisions.

Final thoughts on the potential benefits and challenges of such arrangements:

The benefits of collaborative real estate investing partnerships are clear: they allow investors to pool resources, share risk, and leverage the knowledge and expertise of others. Yet, like any investment strategy, there are challenges to consider as well. Due diligence, for instance, is essential when choosing a partner – and that process can be time-consuming and complex.

In the end, however, the rewards of collaborative real estate investing partnerships far outweigh the challenges. By joining forces with like-minded investors, we can achieve more than we ever could alone – and usher in a new era of profitable, efficient, and innovative real estate investing.