PGGM and Legal & General Property (LGP) have bought a UK property unit trust from Cordea Savills for £370m (€473m).
The joint venture said it has now completed the deal to buy the Bishopsgate Long Term Property Fund Unit Trust at a net initial yield of 6%.
Legal & General Capital (LGC) provided a £142m facility to the partnership at a 40% loan-to-value ratio.
The portfolio was previously debt free.
L&G will manage the fund’s portfolio of 24 UK commercial properties for the Dutch pension fund manager.
Mathieu Elshout, senior investment manager at PGGM, said the portfolio included “well-located, high-quality” UK assets, with “significant opportunities” to add value and enhance income return through asset management.
“We look forward to making similar investments in due course,” he added.
PGGM and LGC are acting as limited partners, with LGP as fund manager.
The joint venture said its investment plan was to target a “strong return through a strategy of optimising property-level business plans”.
The portfolio, which is 2.3% vacant, has a bias to London and the south of the UK, with nearly 60% of assets by value in the two regions and the remaining 40% of the portfolio in major regional UK cities, including Manchester, Cardiff, Leeds and Glasgow.