Catalyst Capital has bought a UK real estate portfolio for €51.5m for its second European fund.

Catalyst European Property Fund II (CEPF II) bought 23 assets, known as the Meteor portfolio, at a net 9% yield.

The portfolio includes 12 retail and seven industrial assets, as well as two office and two mixed-use buildings.

Guy Wilson, partner at Catalyst Capital, said the portfolio offers a combination of high income return and the ability to add value though asset management.

The manager said the 794,000sqft portfolio is leased to 88 tenants, producing 35.44m in gross annual rental income. Vacancy is 7.2%.

Catalyst announced the first close of the fund in June last year, targeting €1bn of investments. Around €680m has so far been invested, the firm said, including the Regatta and Eva portfolios, which total 34 properties in the UK and Project 10, a €200m German office and retail portfolio bought in August.