AustralianSuper has teamed with Hermes Real Estate Investment Management (on behalf of BT Pension Scheme [BTPS]) to buy a 50 per cent interest (A$488.5 million) in a major shopping centre in North West London, thecentre:mk.
Hermes Real Estate Investment Management is acting on behalf of BTPS.
The move comes after AustralianSuper announced plans last year to get into direct investment within certain asset classes including property in a bid to save hundreds of millions of dollars in fees for members.
This is AustralianSuper's first direct investment for its property portfolio as part of its internal investment management strategy.
"AustralianSuper has been monitoring the UK retail property market for quite some time and thecentre:mk is an excellent fit for our portfolio as the dominant centre in a region which is one of the fastest growing in the UK," head of property at AustralianSuper Jack McGougan said.
AustralianSuper was assisted by newly appointed mandate manager Henderson Global Investors for the deal. AustralianSuper and BTPS will become joint owners of the centre with Henderson representing the super fund's interest.
"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," director of property, retail for Henderson, Myles White said.
Hermes has invested in thecentre:mk for almost 40 years.
"The disposal of a 50 per cent stake in thecentre:mk is consistent with our strategic plan to continue to diversify our real estate portfolio internationally," Hermes Real Estate chief executive Chris Taylor said.
Hermes will remain an asset manager for the property.
