French pension fund ERAFP has made its first real estate acquisition with LaSalle Investment Management.
LaSalle said it bought a retail asset in the UK from Green Property for £14.9m (€20.2m).
The asset, in Birmingham’s New Street, is let to Tesco and Evans Cycles.
LaSalle said the deal was done at a net 6.6% initial yield.
Beverley Shadbolt, fund manager, said it would invest in high-quality core assets across Europe for ERAFP, L’Etablissement de Retraite Additionnelle de La Fonction Publique – France’s public sector pension fund.
“New Street is set to benefit from its proximity to the city-centre regeneration project including the refurbishment of New Street Station and the opening of Grand Central later in 2015,” Shadbolt said.
ERAFP made its first real estate acquisitions via a mandate with AXA Real Estate in Spain and the UK in January this year.
The fund made the decision to invest abroad in 2013.
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