Australian Super could up its stake in one of London's biggest urban regeneration projects following the UK government announcement that it would sell its 36.5 per cent share of the Â£1 billion ($2.08 billion) King's Cross redevelopment. 
The country's largest superannuation fund already owns a quarter of the project that when complete will provide 5.8 million square feet of commercial, residential, retail, educational and leisure accommodation across 50 refurbished buildings.
The other major shareholder is Argent King's Cross Limited Partnership - backed by Argent, one of the UK's high profile property developers and Hermes Real Estate on behalf of BT Pension Scheme - which owns 32.5 per cent. Argent is also the asset manager for the project.
The UK government formally announced the sale on Monday.
Australian Super, which paid about Â£200 million for its stake in the project in   March, declined to comment on whether it was eyeing the sale.
"By selling the Government's shares in King's Cross Central (vehicle that owns the project) we are selling an asset we don't need to keep and maximising its value to the taxpayer," UK Transport Minister Robert Goodwill said. "The sale will help reduce the deficit and by doing so deliver lasting economic security for working people."
The government's interest in the redevelopment is through its 100 per cent owned subsidiary, London & Continental Railways.
King's Cross is the super fund's first direct London investment but its second project in the UK.
In 2013, the 2 million-member strong fund partnered with the BT Pension Scheme to buy 50 per cent of a major regional shopping centre in Milton Keynes, in London's north-west for about Â£270 million.
Real estate adviser Savills and investment bank Lazard are handling the sale for the government.
"This investment not only offers a shareholding in a new London Estate but also a leading mixed use regeneration scheme ... With added phases of development under way, this represents excellent value in a market which is set to benefit from further rental growth," Savills head of Central London investment Stephen Down said.
The project will give the 27 hectares around King's Cross and St. Pancras stations a facelift. On top of new properties, there will also be new parks, squares, 20 new streets and three new bridges across the Regent's Canal.
The site will also house 2000 new homes with 30,000 new residents by 2016.
Key pointsAustralian Super already owns a quarter of the King's Cross redevelopment.
The UK government announced the sale of its stake on Monday.