Investment spotlight: Canada Water

15 November 2022

As one of the top 20 largest pension funds globally1, direct property plays an important role in our investment portfolio. In early 2022, we invested in a 50% stake in the Canada Water Masterplan, one of the largest mixed use regeneration projects in central London. This investment highlights how our global reach and scale continue to help members achieve their best financial position in retirement.

AustralianSuper formed a 50:50 joint venture with leading UK property developer, British Land, in the Canada Water Masterplan (Canada Water). The project will deliver new homes, workspaces and retail and leisure facilities. It will also deliver new health, social and educational infrastructure. It will be one of London’s largest and most sustainable urban property regeneration projects.

Canada Water is AustralianSuper’s second large-scale urban regeneration project in the UK. It follows the Fund’s successful investment in the King’s Cross Estate urban transformation project, of which we are a more than 70% owner.

 

What is Canada Water?

Canada Water is a 53-acre development in central London. It will be the first new town centre developed in the city in the last 50 years. It offers extensive open spaces, community facilities and transport links to London’s key commercial areas. These benefits make it an attractive hub for both residents and businesses.

Once complete, we expect Canada Water to have around 3000 net-zero homes, sustainable workspaces for approximately 20,000 workers and 12 acres of new open space. This will include a 3.5-acre park and important protections for historical wetlands and woodlands.

 

Pictured above: artist rendering of Canada Water aerial view

This strategic investment will provide long-term benefits to AustralianSuper members, as well as local Canada Water residents, businesses and the community for generations to come.

Head of European Property, Paul Clark, said, “Our investment in Canada Water will contribute to the retirement savings of nearly 3 million members, whilst also being part of a once-in-a-lifetime regeneration project that will provide long-term benefits to the local community.

“The opportunity to come together with a partner of the calibre of British Land is a critical step in our ongoing expansion in the UK and Europe and closely aligns to our focus on high quality assets and responsible investment.”

 

How does AustralianSuper source global deals?

Our purpose is to help members achieve their best financial position in retirement. As Australia’s largest super fund2, interest in investing in high-quality opportunities, both in Australia and around the world, continues to grow.

That is why we opened our UK office in 2016 and have a growing team of investment professionals in London.

We leverage local knowledge, relationships and expertise in these types of key markets. Our presence gives us access to world class opportunities – like Canada Water and King’s Cross Estate – and industry leading partners – like British Land.

It is why we also opened a New York office in 2021, to expand access to the North American market.

 

What is the timeline for Canada Water?

The first phase of the Canada Water development is well under way. We expect to see the first three buildings, which include a mixture of 265 new homes, office spaces, retail and leisure facilities, to be delivered by the end of 2024. The full regeneration project will be completed within the next decade.

 

Pictured above: artist rendering of Canada Water waterfront

References

  1. Thinking Ahead Institute, Willis Towers Watson, Global top 300 pension funds, September 2022
  2. APRA Annual Fund-level Superannuation Statistics, June 2021

This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/pds or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD.

AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.

 


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