Aegon is selling a portfolio of UK properties for £437.2m (€598m) to Redefine International.

The Aegon UK Property Fund is selling 19 properties at a net 5% yield.

Six of the assets are single-let, with retail parks making up most of the portfolio, which generates an annual £23.5m rent.

Two of the assets are in central London.

The open-ended £731m fund, launched in 1983 and managed by Kames Capital since 2008, has invested across the retail, office, industrial and leisure sectors.

Kames said the fund aimed to deliver total returns from a combination of income and capital growth.

Redefine said it would buy the portfolio through its subsidiary, Redefine AUK, with shareholder approval due later this month.

Chief executive Mike Watters said the deal “rapidly improves the quality and scale” of the company’s overall portfolio.

“The portfolio provides a number of attractive short and longer-term opportunities where we can enhance and capture value by applying disciplined asset management initiatives,” Watters said.

“The geographic and sector spread will provide yet further income diversification.”

Redefine has taken a £303m debt facility from a syndicate fronted by HSBC as part of its future funding strategy.

Separately, Redefine is buying the Banbury Cross retail park for £52.5m.