AustralianSuper has announced a further $900 million investment in the 27-hectare mixed-use office, residential and leisure site, King’s Cross development in London.
The acquisition will lift AustralianSuper’s ownership to a 67.5% stake in one of the most important and biggest city centre regeneration projects in Europe with 860,000 square meters of offices, homes, hotels, leisure, shops and restaurants.
AustralianSuper Head of Property Jack McGougan said the decision to acquire an increased stake in the King’s Cross development following last year’s initial purchase of a 25% stake was a vote of confidence in this commercially successful neighbourhood.
“We are pleased to have secured an increased stake in this iconic mixed use development and look forward to working with our co-investors, our advisors TH Real Estate and the Argent development team to create a vibrant, commercially successful neighbourhood in Central London,” Mr McGougan said.
“This investment underlines our commitment to acquiring core assets in major international cities with trusted and experienced local partners that will deliver long- term returns for our members in retirement.”
“The deal to acquire an additional 42.5% stake also demonstrates the global opportunities that are available to AustralianSuper through its growing size and scale.”
Last year, AustralianSuper spent more than $2 billion of members’ assets on direct property investments in the UK and US markets including the acquisition of $1.1 billion stake in Honolulu’s Ala Moana Center. This expansion into global property markets is in line with the Fund’s strategy to diversify its portfolio and invest in established assets with strong long-term growth potential.
King’s Cross is a 27-hectare, 860,000 square metre central London development comprising homes, offices, schools, restaurants and shops.
The development, with 50 new and refurbished buildings will have 10.5 hectares of public realm, including 10 new parks and squares, 20 new streets and three new bridges across the Regent’s Canal. It will also have close to 2,000 homes.
Its occupiers include Google, the Aga Khan Development Network, and University of the Arts London. The development is home to two new schools: Frank Barnes School for Deaf Children and the primary school, King’s Cross Academy. The site is adjacent to King’s Cross Station, which services six London Underground lines, and St Pancras Station, from where Eurostar services connect to Paris and Brussels.
The decision by the British government to sell its’ 36.5% investment in the estate as part of the deficit reduction program was announced by the British Chancellor in June and the marketing process commenced in August.
As part of the deal, AustralianSuper also purchased an additional 6% stake in the King’s Cross development from Deutsche Post’s DHL parcel service.
The development is due for final completion in 2021.
AustralianSuper has over 2 million members and manages more than $92 billion of member’s assets with the sole focus of providing the best possible retirement income for members.
