Royal London Asset Management Property has acquired a 50% stake in the centre:mk shopping centre in Milton Keynes from AustralianSuper for an undisclosed price.
The remaining 50% stake in the shopping centre is owned by Federated Hermes on behalf of BTPS.
Centre:mk, which is located in the centre of Milton Keynes, was constructed in 1979 and spans 1.3m sq ft. It is anchored by M&S, John Lewis, Harrods H Beauty, TK Maxx, Boots and Next, and has a low vacancy rate of 4.4%. It boasts annual footfall of more than 21 million people.
Paul Nicholson, senior asset manager at Royal London Asset Management 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.
“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, and look forward to working with Federated Hermes to further centre:mk’s success.”
Royal London Asset Management Property was represented by Knight Frank and DAC Beachcroft LLP. AustralianSuper was advised by JLL, Griffiths Eccles and Linklaters LLP.
