Australia’s Aware Super to explore global real estate

Aware Super, Australia’s third-largest pension fund with A$175 billion ($117 billion) in assets, is actively exploring global real estate investments following a successful financial year.

The fund’s chief investment officer, Damian Graham highlighted a focus on high-quality office properties but emphasised the need for compelling value propositions before making acquisitions. Moreover, the fund, leveraging its new London office, aims to identify distressed opportunities worldwide.

Graham was optimistic, saying, “We are looking for distress and attractive pricing, but current market conditions have not yet presented significant opportunities in assets of interest.” Australia’s robust A$3.9 trillion pension sector is anticipated to achieve returns exceeding 9 per cent for the fiscal year, underscoring the scrutiny of fund performances against benchmarks and fee structures.

Aware Super allocates approximately 6 per cent of its portfolio to real estate, with a notable portion in premium office spaces.

Graham anticipates a portfolio return of approximately 10 per cent for the year, reflecting ongoing market dynamics favouring quality investments over deep discounts.

Attribution: Bloomberg.