Royal London acquires 50% stake in Centre:mk
Royal London Asset Management (RLAM) has acquired a 50% stake in the Centre:mk shopping centre in Milton Keynes from pension fund AustralianSuper.
Constructed in 1979, Centre:mk is the primary retail destination in Milton Keynes. The 1.79m sq ft asset is home to retailers such as River Island, Next, JD, The White Company, Hobbs, Kurt Geiger, Boots and TK Maxx. Food and beverage occupiers include Yo Sushi, Wagamama, Nando’s, Bryon, Ned’s, Pret, McDonalds, and Pizza Express.
AustralianSuper had acquired its 50% stake from the BT Pension Scheme (BTPS) in 2014, making its first direct venture into the property market outside of Australia.
Federated Hermes retain the remaining 50% stake in Centre:mk on behalf of the BTPS, which has held an interest in the asset for almost 40 years.
Paul Nicholson, senior asset manager at RLAM, said: “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.”