Legal & General Property has spent £550m (€668m) on a portfolio of assets backed by Royal Bank of Scotland from Telereal Trillium.

The portfolio of 55 assets was bought by L&G Property for the L&G Capital and L&G Retirement funds.

L&G said the deal was part of its strategy to increase principal funds allocated to direct investments. 

Telereal paid former owner Land Securities £750m for Trlllium in early 2009.

L&G said the RBS leases were subject to annual, index-linked rent reviews and had an average weighted unexpired lease term of 22 years.

Around 45% of the income is derived from the London assets, with a further 22% from elsewhere in the south of England.

The portfolio includes the Coutts Headquarters at 440 Strand, 63-65 Piccadilly and 97 New Bond Street in London, as well as one asset in Dublin.

In all, 41 retail/banking units, 10 office buildings and four UK industrial assets make up the portfolio.

Gordon Aitchison, director of investment and development at Legal & General Property, said: “The portfolio comprises well-located, high-quality assets, heavily weighted towards London, including a number of trophy assets. 

“Backed by an A-rated tenant on long-term, index-linked leases, the bond-like quality and duration of the income is exceptionally attractive as a match for L&G’s long-dated liabilities.”

The deal takes L&G Property’s direct property transactions to more than £3.15bn over the past 12 months, acquiring £2.6bn and disposing of £650m.