Loading these themes into real estate, Aware explores how important online shopping will become, as well as the logistical space needed to service online shopping, both in retirement housing and built-for-sale housing developments. We were able to recognize that the need for residential space will increase through .
“This is all very intentional and we have been doing it for years because we really needed a strong macro view on themes and fundamentals to get the alpha. Because I always felt
“So what’s going on with the real estate market across all sectors? Stay here for a long time.
“We have very strong connections around the world, so [those thematic drivers] I was planning on coming here someday. That’s exactly what happened.
“It’s not rocket science. It’s really about identifying macro themes and taking bold, calculated risks.”
It also signifies a willingness to give up one’s previous status. Aware Super has sold approximately $3.2 billion of office and retail assets in Australia, Europe and the US over the past eight years. The firm currently has zero exposure to office and retail in Europe and the US, the hardest-hit commercial real estate sectors in these regions.
As this strategy has been implemented, the composition of Aware’s real estate portfolio has changed significantly from approximately 90% allocated to offices and retail. Today, about 40% of that is residential (in Aware’s terminology, which refers to various forms of residential real estate), 30% industrial, just over 20% offices, and about 8% retail. We maintain exposure to prime office spaces in Sydney and Melbourne.
Aware is pushing forward with its lodging business, making inroads into serviced apartments and senior housing in Europe and built-for-sale housing in Australia, making it a pioneer in this area among local superfunds. . Through the existing pipeline, approximately 2,200 of his BTR apartments are expected to be fully operational within the next few years.
“We are very keen to do more and are currently looking at some deals in construction rental space. It’s a very interesting environment with some developers needing to find partners,” Misefu said.
And as we further strengthen our commitment to industry and life, Aware is keen to apply its experience to adjacent areas where further growth is possible. In the industrial space, this means assets such as cold storage, data centers and self-storage. And for residential spaces, that means Aware has a good chance of becoming a landlord of serviced apartments in Australia.
Three years ago, Aware’s first major offshore real estate transaction involved partnering with Dutch pension giant APG to acquire a controlling stake in a European serviced apartment operator.
Aware’s real estate portfolio has ballooned to about $10 billion, of which about 70% is locally invested. This represents about 6% of the total funding, but the target is about 7% and there is room for more. It also gives Aware’s real estate team a refreshing and bullish outlook in a market with many headwinds for traditional commercial real estate.
“We are not underweight. We still have the capital to deploy at the right opportunity. I think it’s a very attractive opportunity.”
