Fund managers buy half share in shopping centre

Some of the biggest names in Centre:Mk include M&S, John Lewis, Harrods H Beauty, TK Maxx, Boots and Next

A fund management company has bought a 50% share in a leading shopping centre.

Royal London Asset Management Property (RLAM) said it had purchased the share in Milton Keynes' Centre:MK, which it said had an annual footfall of more than 21 million people, from AustralianSuper.

The Grade II-listed 1.3 million sq ft (120,000 sq m) mall, opened in 1979 by then-prime minister Margaret Thatcher, was the UK's biggest shopping centre at the time.

RLAM said part of its strategy was "to invest in well-let and re-priced shopping centres with a strategic Net Zero Carbon pathway".

Paul Nicholson, its senior asset manager, 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."

The remaining share is owned by Federated Hermes on behalf of BTPS.