Royal London Asset Management Property has bought a 50% stake in the 1.3m sq ft centre:mk shopping centre in Milton Keynes from AustralianSuper.
The stake, which was being sold through JLL, is understood to have been offered at around £150m.
RLAM said the acquisition aligned with its strategy to invest in well-let and re-priced shopping centres with strategic net zero carbon pathways and delivering core income returns from rebased rents with capital growth potential.
It added that retail formed an “important component” of its strategy, as demonstrated by the recently announced plan to undertake a significant revitalisation of the two-acre Mayfair Quarter in central London.
Paul Nicholson, senior asset manager at RLAM Property, said: “This 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.”
He added: “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.”
The purchase of centre:mk follows Royal London Asset Management Property’s sale of Quedgeley Retail Park in Gloucester to Frasers in September, and the Homebase in Winchester in October.
The remaining 50% share of the shopping centre is owned by Federated Hermes on behalf of BTPS.
Knight Frank advised RLAM on the deal.
Image © Princebuild
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