Australian largest pension fund AustralianSuper has announced that it will allocate a further A$900 mln (€487 mln) to a property development in London's King’s Cross.

Australian largest pension fund AustralianSuper has announced that it will allocate a further A$900 mln (€487 mln) to a property development in London's King’s Cross.

The pension fund has acquired a further 42.5% interest in the project, bringing its total stake to 67.5%. It had bought an initial 25% in March 2015.

AustralianSuper head of property Jack McGougan said: 'This investment underlines our commitment to acquiring core assets in major international cities with trusted and experienced local partners that will deliver long-term returns for our members in retirement.'

King’s Cross is a mixed-use office, residential and leisure site spanning 67 acres in Central London. It will comprise over 50 new and refurbished buildings with a total value once complete (in around 2020) of £5 bn.The mixed use scheme will consist of 2,000 homes, around 3.4 million sq ft (316,000 m2) of office space and around 500,000 sq ft (46,400 m2) of retail and leisure space, as well as hotel, university and community space.

'We are pleased to have secured an increased stake in this iconic mixed use development and look forward to working with our co-investors, our advisers TH Real Estate and the Argent development team to create a vibrant, commercially successful neighbourhood in Central London,' McGougan added.

The acquisition follows the decision by the British government in June last year to sell its 36.5% stake in the site as part of its deficit reduction program. As part of AustralianSuper's deal, it also purchased an additional 6% stake in the development from Deutsche Post's DHL parcel service.

According to the UK Government’s press release, over 100 investors from across the globe expressed an interest in the competitive tender process, which was managed by Lazard and Savills. The Government also said that the proceeds of the sale will be returned to Her Majesty’s Treasury (HMT), to be reinvested into the public purse.

The development is due to be completed in 2021.

Linklaters advised Australian Super on the deal.

AustralianSuper is an Australian superannuation fund and this is their third significant investment in the UK property sector, following on from their initial investment in the Kings Cross development and after acquiring a 50% interest in thecentre:mk in Milton Keynes in December 2013.