Australian investor steps into UK living sector

AustralianSuper has launched a new UK-based living platform with an initial investment of £500 million, signalling strong confidence in the long-term growth potential of the UK’s operational living sector. The platform will focus on the delivery and management of purpose-built rental accommodation across student housing, co-living and residential homes.

The announcement was made during the Australian Superannuation Mission to the UK, a government-backed initiative bringing together institutional investors and policymakers to promote infrastructure and housing investment. The fund’s move aligns with broader UK government ambitions to stimulate housing development and economic growth through foreign capital.

AustralianSuper’s Deputy Chief Investment Officer, Damian Moloney, said the UK remains a priority destination for global capital deployment, with the fund on track to invest over £8 billion in new UK assets by 2030. “Establishing this platform is a significant milestone. It’s a clear demonstration of the Fund’s international capabilities and our confidence in the UK’s living sector,” he said.

The fund aims to position its new platform among the UK’s top five rental home operators within five years and has already committed to a student accommodation development in Bristol, targeted for completion in 2027. A strong pipeline of investment opportunities in high-demand urban centres is currently under assessment.

The platform will be led by Tim Butler, a veteran of the UK’s operational living sector and former co-founder of Student Roost and Unite Group. He will oversee strategy and growth as the business scales to meet institutional standards in customer service, sustainability, and asset quality.

AustralianSuper’s entry is underpinned by market fundamentals including a chronic supply-demand imbalance, rising rents, and continued strength in the UK’s higher education sector. Despite the size of the UK’s private rented sector—valued at £1.6 trillion—only 2% of assets are institutionally owned, with the remainder held by private landlords.

UK Chancellor Rachel Reeves welcomed the announcement, describing it as aligned with the government’s goals to “get Britain building again” through increased private investment in housing, infrastructure, and regional regeneration.

The platform adds to AustralianSuper’s growing UK and European real estate portfolio, which includes strategic regeneration sites at King’s Cross and Canada Water in London. The fund, one of the world’s largest pension investors, currently manages £11 billion in UK assets and expects this to reach £18 billion by the end of the decade.

As part of its long-term strategy, AustralianSuper projects that 70% of all member assets will be internally managed by 2030, with its London office expected to house over 300 staff and oversee up to £250 billion in assets by 2035.