UK - Wilky Fund Management has purchased Brook Retail Park in Clacton-on-Sea on behalf of the Associated British Foods Pension Trustees (ABFPT) for £11.5m (€13.2m).
The acquisition of the property, which includes tenants B&Q and Currys, reflected a net initial yield of 8.46%.
Brook Retail Park is ABFPT's first purchase since allocating new funds to direct real estate in February.
Kevin Seville, consultant fund manager at Wilky, said the fund manager was tasked with identifying UK real estate that offered long-term income, was well-let at yields of more than 8%.
Wilky is able to invest across sectors on behalf of ABFPT, but the fund manager has recently seen the best opportunities in retail warehousing and industrial.
A third of the portfolio is held in retail warehousing and Seville said there was a further £10m to spend in this sector from Wilky clients like ABF.
But Seville said the prime end of the UK market was becoming more competitive. "Most institutions and pension funds are chasing the same things," he said.
"It is more difficult to buy at the moment good quality stock yielding over 8%, whether that's industrial or retail warehousing.
"Values have improved as people are chasing the same stock, so it is more important to find stock off-market if we can."
