Aware Super and Delancey team up for £1bn London offices push

Australian super fund Aware Super has teamed up with Delancey to invest £1bn in central London’s “weakened” office market. The pair’s partnership will focus on prime locations, with the companies noting that a slowdown in new office developments has created a scarcity of high-quality space.  Jamie Ritblat, founder and chairman of Delancey, said: “Amid asset repricing driven by interest rate and regulatory changes, we see an attractive entry point in a weakened office market.” Aware Super’s senior investment director for property, Mathieu Elshout, added: “There is a sharp supply-to-demand imbalance in the London office market which is creating an unprecedented flight to quality for high-quality office space in the best locations and with compelling sustainability credentials. “With the UK property market having re-priced more quickly than others, this provides an exciting window of opportunity.” The platform will acquire stabilised assets, fund development and recapitalise existing projects, with single-asset, portfolio and corporate acquisitions all considered. Alek Misev, Aware Super’s head of property, said: “A key theme of our global real estate strategy is anticipating future trends and making counter-cyclical investments. This has reaped strong rewards and we believe that under-valued Central London offices also fit this profile.” Following initial investments in London’s office market, the partners said they were “open to exploring” retail, logistics and mixed-use projects. Aware Super owns a 22% stake in build-to-rent operator Get Living, which was founded by Delancey. Aware Super’s head of international and deputy chief investment officer, Damien Webb, said: “Since opening our first international office in London in November 2023 we have been encouraged by the growing strength of the UK economy.”