AustralianSuper has agreed to take a 25% stake in King’s Cross, in its first direct London investment and only its second in the UK. 

Subject to the customary European Union clearance, AustralianSuper will join the King’s Cross Central Partnership investors which include Argent King’s Cross, backed by Hermes Investment Management and Argent, as well as London & Continental Railways  and DHL Supply Chain.

“The King Cross development represents a significant opportunity to invest in a world class mixed-use estate," said Jack McGougan, head of property at AustralianSuper. " underlines our commitment in pursuit of our strategy to acquire core assets in major international cities with trusted and experienced local partners."

The 67-acre King’s Cross site, which includes some 8m sq ft of offices, homes, hotels, leisure, shops and restaurants, a university, galleries, schools, community facilities and music venues, all set within world-class public realm and the stunning re-use of historic buildings, structures and spaces, will remain a single entity, managed under the current ‘one estate' approach. Argent will remain as developer and asset manager, focused on the design and delivery of the next phases of development.

"Having worked together for 14-years, the current partnership’s long-term approach has had tangible benefits for the development of King’s Cross as a successful London neighbourhood. The introduction of AustralianSuper as a like-minded investor will cement this long-term ownership structure," said Sir David Clementi, chairman of King’s Cross Central Partnership.

This is the second partnership between AustralianSuper and Hermes in the UK. The co-investors, who share a sustainable, long-term approach, initially partnered at Centre:mk in Milton Keynes following AustralianSuper’s purchase of 50% of the major regional shopping centre from Hermes in December 2013. Hermes continues to asset manage the centre on behalf of the co-owners.

“Our partnership at Centre:mk has been hugely successful, and we look forward to building on this further at King’s Cross. AustralianSuper shares Hermes’ conviction for creating and sustaining a world class place for people to work, live and visit in Central London,” said Chris Taylor, CEO of Hermes Real Estate and head of private markets, Hermes Investment Management.

The King’s Cross Central Partnership was represented by Rothschild and GM Real Estate. AustralianSuper was advised by its UK appointed mandate manager, TIAA Henderson Real Estate.