AustralianSuper Makes Landmark Investment in UK Retail Space

AustralianSuper, Australia’s Melbourne-based superannuation fund, has agreed to purchase a 50% stake in thecentre:mk, a major regional shopping center from BT Pension Scheme for £270 million (US$ 442.5 million). Hermes Real Estate Investment Management acted on behalf of BTPS.

According to a news release issued by AustralianSuper, the purchase is in line with a strategy announced late last year to begin making more direct investments in certain asset classes. AustralianSuper estimates the new mandate should save its members hundreds of millions of dollars in fees as well as provide the superannuation fund with “more direct control over the management of its investments.”

Henderson Global Investors partnered with AustralianSuper as an advisor on the deal. “Since being appointed by AustralianSuper in June, we have worked collaboratively with Jack and his team to identify an optimum entry point into the UK retail market. thecentre:mk ticked the boxes across all criteria, from quality of asset, location and catchment through to opportunities for long term growth and asset management opportunities. We look forward to working with Hermes in driving value from this asset, on behalf of AustralianSuper,” said Myles White, Director of Property, Retail for Henderson.

“The purchase is AustralianSuper’s first direct investment for the property portfolio as part of its internal investment management strategy,” said AustralianSuper in a statement.

thecentre:mk in Milton Keynes, a city northwest of London, contains 1.3 million square feet and houses 220 retail units.

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