AustralianSuper has made its first investment in the UK shopping centre market, through its expanding internal investment team and via a co-investment with the BT (British Telecom) Pension Scheme.

The deal marks the first property investment by the AustralianSuper inhouse managers. The deal was organized by Hermes Real Estate Investment Management, which sold its investment as part of a diversification strategy.

The joint investors have paid GBP270 million (A$502 million) for a 50 per cent stake in a shopping centre in Milton Keynes, called ‘thecentre:mk’, north west of London.

Jack McGougan, head of property at AustralianSuper, said the shopping centre was a focal point for the Milton Keynes town centre and had excellent growth potential.

“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,” he said.

The ongoing interests of AustralianSuper in the centre will be represented by Henderson Global Investors. Henderson was appointed as adviser to AustralianSuper last June and helped identify the Milton Keynes opportunity.