Aware Super, managing A$235 billion, is shifting its residential property strategy toward purchasing completed apartment blocks rather than funding new developments. Head of Property Alek Misev says the fund is targeting buildings valued between A$100 million and A$200 million, buying from developers who need liquidity. The strategy avoids the cost overruns and construction delays that have hammered the build-to-rent sector.

Elevated borrowing costs and persistent inflation have made new residential projects financially unworkable across global markets. Housing shortages are simultaneously pushing rents higher, which boosts returns for landlords holding existing stock. Aware Super recently acquired a Brisbane apartment block and is hunting for similar deals in Spain, the UK, and the US. Its real estate portfolio sits at roughly A$16 billion, with about 30% allocated to build-to-rent sites.

Misev frames the approach simply: the fund captures good pricing without absorbing development risk. Beyond residential, Aware is also growing its A$2 billion senior-living portfolio through existing stakes in operators Keyton and Oak Tree, rather than chasing large acquisitions. For institutional investors watching construction costs climb, the message is straightforward — finished assets at the right price beat ground-up risk in this rate environment.