M&G Real Estate and West Yorkshire Pension Fund have partnered for the second time to buy a £94m (€107.3m) regeneration project in the West Midlands of England.

M&G said it has acquired Selly Oak Retail Park in south-west Birmingham. Once completed, the scheme will provide 190,000sqft of retail space.

The park is almost completely pre-let, the real estate investor said.

The acquisition was made on behalf of M&G Real Estate’s Capital Solutions business.

The latest deal marks M&G’s second partnership with West Yorkshire Pension Fund.

Last July, M&G, West Yorkshire Pension Fund and an unnamed Asian investor bought a prime office building in Manchester for £105m.

Louise Warden, property investment manager of West Yorkshire Pension Fund, said: “This high-quality asset provides a secure income stream for our members in line with the pension funds’ long-term objectives and has the added advantage of providing socio-economic benefits to Birmingham and the UK.”

Martin Towns, the head of M&G Real Estate’s Capital Solutions arm, said: “There is an increasing trend in global real estate for large institutional and sovereign wealth investors to partner with established fund management companies through joint ventures and separate accounts.

“We believe in investing time to truly understand our clients’ unique preferences and requirements, using our skills and experience to create bespoke strategies and investment opportunities that work for them.”