Aware Super sells majority stake in water portfolio

Aware Super has announced the sale of a majority portion of its Australian water portfolio with the strategic divestment of 83 gigalitres of water entitlements from the southern Murray-Darling Basin.

The sale was completed through the Australian Commonwealth Government's Voluntary Water Purchase Program and followed a comprehensive sale process with both public and private sector parties.

The transaction includes a portion of water right entitlements from the southern Murray-Darling Basin within its 143GL portfolio, representing one of the largest independently owned water entitlement portfolios in Australia. The portfolio is managed by Argyle Capital Partners, and is diversified across Victoria, New South Wales, South Australia and Queensland.

Aware Super said its $25 billion infrastructure portfolio has delivered long-term member returns through its investment in water entitlements since the portfolio was built over a decade ago, originating through VicSuper in 2007.

The proceeds from the sale, which have remained undisclosed, of the water rights will be redeployed back into the fund's infrastructure portfolio for future investment opportunities.

"We are delighted to achieve this positive outcome for our members with the proceeds received from this sale providing additional capital to pursue emerging opportunities across our infrastructure portfolio," Aware Super head of infrastructure Mark Hector said.

"As an active manager, Aware Super will also continue to explore opportunities to maximise returns across its remaining water entitlements, including the potential for further transactions."

Meantime, Aware Super has completed its major multi-year technology uplift, dubbed Project Odin.

The multi-year transformation delivered the GoldenSource Investment Data Platform, Ortec PEARL Performance and Attribution, the BlackRock eFront for private markets, with the final phase being the BlackRock Aladdin Investment Platform.

Aware Super chief investment officer Simon Warner said the completion of Odin marks a critical milestone in the fund's evolution as a sophisticated global asset owner.

"With Aladdin now in place, we have a modern, institutional-grade platform that enables our investment teams to make faster, better-informed decisions on behalf of our members," Warner said.

"Aladdin gives us the scale and capability to manage more of our investments internally, reduce costs, strengthen risk management, and ultimately deliver stronger long-term returns."