UK - The pension fund of BAE Systems in the UK has bought a retail warehouse through property fund managers LaSalle Investment Management.

Warner Estate Holdings sold the freehold interest in the property in Weston-super-Mare in the South West of England to LaSalle for £9.75m (€10.8m), reflecting an initial yield of 6.63%, on behalf of BAE Systems Pension Plan Trustees.

The BAE Systems pension fund has close to £3bn assets under management, of which approximately 8% is invested in real estate, according to most recent figures.

Warner Estate purchased the property, located on the Winterstoke Trading Estate, for the company's wholly owned portfolio in 2007.

The retail centre has attracted upmarket food store Waitrose, which recently signed a 36 year lease, taking over units from tenants B&Q and Iceland.

"It has been a pleasure working with Waitrose and LaSalle Investment Management on this project," said Mark Peace, senior asset manager at Warner Estate.

"Following on from the 36-year letting to Waitrose, this sale serves as proof that, with co-operation and active asset management, it is still possible to create added value and quality long-term investments, even in today's challenging market."

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