Australia's largest superannuation fund AustralianSuper is in late stage talks to sell its 50% stake in the Centre:mk shopping centre in Milton Keynes to Royal London Asset Management.
The fund, which is a profit-for-member scheme somewhat like a pension fund, appointed JLL in October to advise on a potential sale as part of a review of its global property portfolio.
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 the 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 manager for BTPS.
Royal London and JLL declined to comment.