Milton Keynes shopping centre wins national award after half of it is sold off to investors

It was judged the Sale/Acquisition of the Year in the CoStar Impact Awards, which reward exemplary real estate transactions completed in 2024 that significantly influence neighborhoods in the United States, Canada and the UK.

The annual awards wards celebrate commercial real estate professionals who have brought leadership, innovation and professionalism to their markets, by spotlighting commendable transactions and projects.

Last year Royal London Asset Management paid £142m to buy 50% of centre:mk, with a net initial yield of 9.25%. The other 50% is still owned by Federated Hermes, which holds it on behalf of the BT Pension Scheme.

The CoStar experts judges said: “This £142 million transaction demonstrates continued investor interest in large-scale retail assets like The Centre:mk, even within a challenging retail environment.”

They added: “It provides a market data point for similar properties and reflects the yield expectations for these investments, leading to the independent panel of judges giving it a CoStar Impact Award for Sale of the Year in the South East.”

The centre:mk has 1.3 million square feet of retail space spread across two stories, situated on a 13.86-acre plot in the city centre. It includes a multistorey car park with 1,400 parking spaces. Anchor tenants at the location are John Lewis, Next, M&S, H Beauty, River Island, Primark, Boots, JD Sports and TK Maxx.

Granting the centre the award, the judges said: "We think The Centre:mk should win Sale/Acquisition of the Year because it’s a stand-out deal that reflects strong investor confidence in large-scale retail assets, even in a challenging market.”

They added: "The £142 million transaction brought Royal London Asset Management on board as a new 50% owner, showcasing strategic portfolio growth and diversification. Despite the tough retail climate, The Centre:mk has maintained an impressive low vacancy rate of just 4.4% with a strong line-up of anchor tenants like John Lewis, M&S, and Primark.

"This deal highlights not just the resilience of the asset, but also its long-term value as a prime retail destination in the UK.”

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