DAC Beachcroft's real estate and corporate teams have advised Royal London Asset Management Property on its acquisition for a 50 per cent stake in centre:mk, Milton Keynes’ largest shopping centre.
The stake was sold by AustralianSuper, Australia's largest superannuation fund, while the remaining half is owned by Federated Hermes on behalf of the BT Pension Scheme.
Centre:mk is one of the UK’s leading shopping centres, with an annual footfall of over 21 million and spanning 1.3 million sq ft, making up 80 per cent of the retail floor space in the centre of Milton Keynes.
The acquisition by Royal London Asset Management Property is part of the company's investment strategy in well-let shopping centres which offer the potential for sustainable growth.
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.”
Helen Murcott, DACB's Client Relationship Partner for Royal London Asset Management Property, commented, "We are delighted to have advised on the acquisition of an interest in one of the UK's major retail destinations. Our multi-disciplinary national team continues to support Royal London Asset Management Property on the realisation of its investment strategy, and this project was a great opportunity to play to the strengths of our established team."
Royal London Asset Management Property was also represented by Knight Frank, while AustralianSuper was advised by JLL, Griffiths Eccles and Linklaters LLP.
