IFM Investors will spend $12.6 billion on infrastructure and energy transition projects in the UK by 2027, under an agreement announced with the government there, while Aware Super will direct $6.6 billion to the UK and Europe
Two of Australia’s biggest pension investors pledged to invest US$19 billion into UK and European markets in coming years, as the industry increasingly looks for opportunities overseas.
IFM Investors, owned by some of Australia’s largest pension funds, will spend £10 billion (US$12.6 billion) on infrastructure and energy transition projects in the UK by 2027, under an agreement announced with the government there. In the meantime, Aware Super said it will direct A$10 billion (US$6.6 billion) to the UK and Europe through its new London office. Both companies were making their announcements at the Global Investment Summit in London on Monday.
The UK is taking steps to help facilitate long-term investment in infrastructure, and we currently see significant deployment opportunities, especially as part of the UK energy transition in areas like offshore wind, solar, battery storage, renewable fuels, and pumped hydro, IFM Investors head of infrastructure for Europe Deepa Bharadwaj said in a statement.
It is the latest sign of the increasing international footprint of Australia’s A$3.5 trillion (US$2.31 trillion) pension industry, known locally as superannuation, which has increased assets invested overseas in recent years. Meanwhile, locations beyond Australia are becoming more important, with Aware Super opening its London office last week, and Australia’s biggest pension fund, AustralianSuper, building its presence in London and New York in recent years.
Aware Super has already invested A$17 billion (US$11.23 billion) in the UK and Europe. The fund said the new round of investment would initially focus on real estate, infrastructure and private equity. It cited “emphasis” on the energy transition sector, affordable housing, innovation, life sciences, technology and the digital infrastructure sector.