Australian investment surge, fuels substantial and sustained British economic growth across multiple sectors

( Source and Courtesy 10 Downing Street Press Office)

In a significant boost to British economic prospects, Australian superannuation giants are spearheading substantial investments in the UK, with Prime Minister Keir Starmer championing a new era of growth and international partnership. On his first visit to the Pacific as Prime Minister, Starmer emphasised the UK's ambitions to remain a global investment hub and laid out a vision to strengthen economic ties across the Commonwealth. This aligns with a strategic partnership announced by Aware Super, one of Australia’s largest superannuation funds, which has pledged up to £1 billion for UK property projects, reinforcing the importance of Australian capital to the British economy.

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Starmer's visit follows the success of the recent International Investment Summit, which secured over £2.4 billion in new investments from Australian funds, propelling a dynamic flow of foreign capital into the British market. Notably, AustralianSuper, the country’s largest pension fund, also announced plans to grow its UK-based investment team in London and aims to manage £250 billion in assets from its London office by 2035. This represents a tenfold increase from the £15 billion currently managed, underscoring Australia’s strong confidence in the UK as a global financial centre.

Reflecting on these developments, Starmer stated, “These investments are a major vote of confidence in the UK, and in this Government. I am determined to ensure that the UK is the best place in the world to invest and do business, so we improve the lives of hardworking people. By attracting strong, sustained investment, we will also build the expertise we need to drive innovation, stay ahead of the global game, and support economies around the world with British-backed projects.”

Aware Super partners with Delancey Real Estate for sustainable UK property investments

Aware Super's partnership with Delancey Real Estate marks an initial £1 billion investment into prime London real estate, targeting offices in Central London. The fund, recognised as one of Australia's largest profit-for-member superannuation schemes, aims to upgrade and revitalise these properties to meet stringent environmental standards and further the partnership’s shared commitment to sustainable practices.

Commenting on the partnership, Aware Super’s CEO Deanne Stewart said, “Aware Super has strong confidence in the UK economy and markets and is pleased to announce a ground-breaking new commercial partnership that will invest up to an initial £1 billion, an exciting milestone that will coincide with the first anniversary of establishing our London Office.”

This initiative reinforces a burgeoning economic alliance between Australia and the UK, positioning Aware Super’s investments as a catalyst for environmentally conscious growth in the UK property sector, an area expected to yield high returns for Australian fund members while supporting the UK’s green agenda.

AustralianSuper: Vote of confidence in the UK’s long-term potential

AustralianSuper’s ambitious plans for growth in the UK underscore the pension giant’s confidence in Britain’s financial fundamentals and investment appeal.

CEO Paul Schroder highlighted the UK’s role as a gateway to global talent and markets noting, “By 2035, we expect to manage approximately £250 billion of investments from our London hub, which will represent a significant portion of our global portfolio. We have great confidence in the fundamentals of the UK economy and the country’s commitment to global growth.”

The fund has already channeled over £7.2 billion into UK projects, including the transformative Canada Water regeneration project, London’s King’s Cross Estate, Peel Ports Group, and Vantage Data Centres. Schroder sees further potential for investment in areas pivotal to the UK’s future growth, such as energy transition, digital infrastructure, transport, and logistics.

UK success in New Zealand banking and global trade agreements

Beyond Australia, British firms are making inroads internationally, particularly in the New Zealand banking sector, where UK companies Obconnect and Raidiam have introduced the British Confirmation of Payee (CoP) system. Partnering with the New Zealand Banking Association, the initiative has revolutionised data sharing and fraud prevention, establishing the companies as key players in the market and enabling them to expand their UK workforce to over 250 people.

This expansion into new markets comes amid positive developments in UK trade. Australia recently ratified the UK's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), marking the UK as the first non-founding member of this influential trading bloc. With Australia’s support, this move sets the stage for deeper trade relations across the Asia-Pacific region, presenting significant opportunities for UK businesses and reinforcing Britain’s post-Brexit international trade ambitions.

International Investment Summit fuels optimism for UK economic growth

The International Investment Summit, held earlier this month, proved a resounding success, attracting £63 billion in foreign investment commitments and pledging the creation of 38,000 UK jobs. Highlights included Macquarie's £1.3 billion investment in UK green infrastructure and IFM’s £1.1 billion injection into London Stansted Airport through the Manchester Airports Group. This expansion will add a third to the airport’s terminal, opening new routes to business and leisure destinations, strengthening local supply chains, and generating 5,000 new jobs.

Australia’s Macquarie and IFM, along with other global investors, are drawn to the UK’s commitment to sustainability and its position as an emerging leader in renewable energy and technology infrastructure. As part of the summit's legacy, these investments signal long-term confidence in the UK and its capacity to foster economic development through strategic international partnerships.

New era for Commonwealth economic resilience

In Samoa, at the Commonwealth Heads of Government Meeting, Prime Minister Starmer emphasised the importance of building resilient economies across the Commonwealth, urging collaboration to unlock growth and investment opportunities for member states. His historic visit to the Pacific and Australia’s heightened economic engagement with the UK reflect a shared commitment to fostering stable and resilient economies within the Commonwealth.

The Prime Minister’s message underscores a vision of shared prosperity and mutual benefit, paving the way for Commonwealth nations to thrive collectively amid global economic challenges. With Australia at the forefront, this influx of investment affirms that the UK remains a preferred destination for international funds, driven by stability, innovation, and growth opportunities across various sectors.

Australia's leading superannuation funds have demonstrated clear confidence in the UK, committing billions to projects with the potential to reshape the UK property market, bolster infrastructure, and stimulate the local economy. As Starmer’s government works to secure further investment and strengthen the Commonwealth alliance, the UK is well-positioned to reinforce its standing as a premier global investment destination, supported by robust international partnerships and a vision for sustainable economic progress.

With a backdrop of Commonwealth unity, Australia’s financial contributions signal a promising chapter for UK-Australia relations, benefiting British industries and communities alike as they navigate an evolving global landscape. The flow of Australian capital into the UK marks a landmark vote of confidence, reinforcing the British economy as it embraces a future defined by global cooperation and economic resilience.