(This story has been updated to reflect the fact that Hermes is now Federated Hermes).
Australia's largest superannuation fund AustralianSuper has appointed JLL to advise as it explores the sale of its 50% stake in the centre:mk shopping centre in Milton Keynes.
The fund, which is a profit-for-member scheme somewhat like a pension fund, confirmed the potential sale forms part of a review of its global property portfolio. No price has been attached but market sources expect a figure of around £150 million. There are expectations that the review process will complete in early 2024.
In a statement JLL confirmed: "As part of a review of its global property portfolio, AustralianSuper is exploring the sale of its 50% interest in centre:mk."
Over the past nine years, AustralianSuper has nearly tripled in size, growing from £40 billion to more than £155 billion in assets under management. It has now conducted a review of its global property portfolio and identified several assets that no longer fit its strategy of investing in large-scale property opportunities globally.
It bought the stake in Centre:mk and now wants to redirect capital to other opportunities. It has a global property portfolio of more than £8 billion, including two significant long-term investments in the UK with a majority interest in London’s Kings Cross Estate and a 50% interest in the Canada Water redevelopment alongside British Land.
AustralianSuper bought its 50% interest in the 1.3 million-square-foot shopping centre from Hermes Real Estate Investment Management, on behalf of BT Pension Scheme Trustees Limited for £269.66 million, reflecting a net initial yield of 5.34% in 2013.
Previously majority owner, now Federated Hermes, the fund manager for BTPS, had acquired the remaining 36% in the Centre:MK in June 2013 through a property swap with M&G, bringing the asset fully under its control.
Federated Hermes is the asset manager for the joint venture as well as the fund mnager for BTPS.
The sale comes as British Land and Norges are understood to have appointed CBRE to explore a potential sale of another major UK mall, Meadowhall in Sheffield, for around £750 million.