The British Airways Pension Fund has sold a UK warehouse asset to Legal & General Property for £50.8m (€71.1m).

The latter said it bought the Waitrose distribution warehouse, at Matrix Park in the northwest of the UK, for its annuity fund.

The deal reflects a net 4.18% initial yield.

The 422,000 sq ft asset is let to Waitrose on a rent linked to RPI for 30 years from April 2012.

According to local media reports in 2011, the Chorley site was developed by Evander Properties, with £35m of funding from BA Pension Fund.

The asset was pre-let.

BA, which declined to comment, paid Aldi £6.8m for vacant land in 2010.

Waitrose leased the site for 25 years at an initial rent of more than £1.9m a year.

The distribution centre supplies up to 80 branches in the north of England and Scotland.

The deal is LGP’s second in the distribution sector; it bought a similar asset in Milton Keynes, also let to Waitrose.