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Malaysian pension fund KWAP has acquired a majority interest in the Intu Uxbridge shopping centre in London for £175 mln (€216 mln).

The €23 bn KWAP (Kumpulan Wang Persaraan) fund has already been active in the UK with the purchase in 2013 of office block 88 Wood Street in London from Korea’s National Pension Service for £215 mln.

Intu, the UK listed retail specialist, is selling an 80% interest in the asset for a 2% premium to its end-2013 valuation of £214 mln.

Intu will retain a 20% interest and continue to manage the centre on behalf of the newly created joint venture.

The sale is in line with Intu's strategy of recycling capital into its £1.2 bn development pipeline and proceeds will be used to repay existing bank debt.

'We are delighted to have entered into this partnership, establishing a relationship with a significant overseas investor and demonstrating the investment demand for prime UK shopping centres under the management of a specialist operator such as Intu,' commented David Fischel, CEO of Intu.

Opened in 2011, the scheme provides 440,000 sq ft (40,900 m2) of retail, catering and leisure space across 72 units. Last year, the mall generated £11.7 mln of rental income.

Asian investment in the UK rocketed by 112% last year to £10.3 bn, according to Kevin McCauley, senior director of research and consulting at CBRE in London. CBRE is forecasting that Asian investors will account for up to £10 bn of deals this year. In total, £53 bn of deals were transacted in the UK last year, of which almost half – or £21 bn – were closed in the last quarter.

London is typically the gateway city to Europe for Asian investors looking to invest in Europe, due to its transparency and liquidity. In addition, Asian investors have deep pockets, enabling them to outbid many of their rivals.