Aware Super, together with a European consortium, will build a hotel located in London's Victoria district.
The superannuation fund, Dutch apartment hotel group City ID and pension provider APG, acquired the site for an undisclosed amount.
Aware Super senior portfolio manager of property Alek Misev said this project is the start of a significant period of growth and expansion for the City ID portfolio and increases our exposure to the rapidly expanding European aparthotel sector.
"Through developments like this, we continue to deliver on our commitment to do well for our members through top long-term performance, while doing good in the community," he said.
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The property has 116 rooms, restaurant and bar, and gym. It is due to open its doors in 2024.
City ID chief executive Alexander Goad said: "We are excited by the journey ahead and the ability to provide a new level of accommodation across Europe together with our shareholders APG and Aware Super over the coming years."
The $140 billion super fund recently bumped up its commitment to affordable housing with the acquisition of a site in Melbourne.
Aware Super and its investment Partner Altis Property Partners purchased the 7000 square metre Bayview on the Park site and will develop 300 units which are to be rented as essential worker affordable housing.