AustralianSuper has sold its 50% stake in a UK shopping centre to Royal London Asset Management Property, with Federated Hermes retaining the remaining half on behalf of the BT Pension Scheme (BTPS).
Royal London said it has invested in the 1.3m sqft centre:mk mall shopping centre in Milton Keynes without disclosing financial terms.
In January 2014, AustralianSuper acquired its 50% stake in the £270m (€323m) UK shopping centre from BTPS, marking the Australian superannuation fund’s first direct property investment outside its domestic market and reducing the BT Pension Scheme’s interest after nearly 40 years of ownership.
The Grade II listed, purpose-built shopping centre was constructed in 1979.
Paul Nicholson, Senior Asset Manager at Royal London Asset Management Property, said the acquisition marks a significant move for Royal London Asset Management Property, “demonstrating our confidence in the retail market’s recovery and the future success of well located, best-in-class shopping centres” such as centre:mk.
“As consumer confidence improves, low inflation and high earnings growth are expected to enhance spending power, subsequently boosting retailers’ sales. centre:mk, as a catchment-dominant shopping centre, is poised to benefit from this recovery.
“Underpinned by high footfall and sales, centre:mk offers a strong, stable income stream coupled with a low vacancy rate, significantly below the UK shopping centre average, highlighting its resilience and appeal.
“This acquisition enhances our balanced portfolio by increasing our retail sector exposure. We anticipate strong returns and excellent rental growth, and look forward to working with Federated Hermes to further centre:mk’s success.”
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