IO Asset Management has bought 10 UK industrial estates worth £34m (€38.9m) for Tesco Pension Fund (TPF).

The specialist manager said it bought the assets on behalf its multi-let industrial-focused segregated mandate for TPF.

The manager paid £17.4m for the Hilldane portfolio, which includes seven estates in Horley, Newhaven, Okehampton, Redditch, Cardiff & Abergavenny. It also bought Stroud Enterprise Centre for £2.5m; Ketley Business Park in Telford for £8.25m and Bredbury 25 Trade Park in Stockport for £5.65m.

The latest deal adds to the six multi-let industrial estates the manager acquired for £27.3m in June this year on behalf of TPF.

The manager was awarded a £40m equity mandate by TPF earlier this year and, following the allocation of additional equity from the same source, has acquired around £65m of multi-let industrial estates for the mandate to date.

Angus Scott-Brown, the managing director of IO Asset Management, said: “These estates offer the opportunity for good initial income distribution coupled with active asset management opportunities and the prospect of both income and capital growth.

“The additional investment from TPF along with debt finance from Santander enables us to seek further acquisitions, and we have already identified a strong pipeline of similar opportunities across the UK as we seek to selectively grow and enhance the portfolio.”