UK launches ‘Supers Unit’ to attract £99bn in Australian pension investment

The UK government has launched a new investment initiative aimed at attracting up to £99bn in Australian pension fund capital into British infrastructure and private markets over the next decade, in a move ministers say could support major transport, energy and housing projects.

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The new “Supers Unit”, led by the government’s Office for Investment, is intended to strengthen ties between UK and Australian pension and superannuation funds and simplify investment into long-term British assets, including transport infrastructure and regional development schemes.

The initiative follows the signing of a memorandum of understanding between Chancellor Rachel Reeves and Australian Treasurer Jim Chalmers during the IMF and World Bank spring meetings in Washington last month. The agreement is designed to encourage cross-border investment flows between the two countries’ retirement savings sectors.

Australian pension funds already hold around £41bn in UK assets, according to industry estimates, with investment expected to grow significantly by 2035. Officials said the new unit would help connect overseas institutional investors with UK projects in sectors including rail, clean energy, logistics, digital infrastructure and urban regeneration.

The announcement is part of a broader government strategy to increase private investment in infrastructure at a time when public finances remain under pressure. Ministers have increasingly focused on pension capital as a source of long-term funding for major projects that require patient investment horizons.

The UK Treasury has already secured commitments from major domestic pension providers through the Mansion House Accord, under which pension schemes pledged to increase allocations to private markets and UK assets. Government estimates suggest the agreement could unlock up to £50bn for infrastructure, clean energy and business investment.

Industry analysts said the latest partnership with Australia could prove particularly significant for transport infrastructure, where large-scale projects often depend on long-term institutional investors willing to accept lower but stable returns over decades.

Australian pension funds are among the world’s largest infrastructure investors and already hold stakes in several UK transport and utility assets. Their investment models are seen to be a mechansim to finance airports, roads, ports and energy networks through retirement savings capital.

The government said the Supers Unit would also work to reduce regulatory and administrative barriers that can slow investment decisions, while helping develop pipelines of investable projects across the UK.

The initiative comes alongside wider efforts to mobilise institutional investment through bodies such as the National Wealth Fund, which was established to attract private capital into infrastructure and industrial projects