Legal & General has acquired five student accommodation blocks and an academic facility at Exeter University, southwest England, for £76m (€85.6m).

The UK insurer said Legal & General Investment Management’s real asset division acquired the assets on behalf of two separate funds as part of a joined up approach to satisfy its wide ranging investor needs across its fund management platform.

The student accommodation blocks have been acquired by Legal & General’s UK Property Fund for £49.6m, representing an initial yield of 5.78%.

Let to INTO University of Exeter on a 35 year lease, the student accommodation totals 517 rooms across five blocks.

The INTO Academic Facility was bought by Legal & General’s Limited Price Inflation (LPI) Income Property Fund for £26.4m.

The 36,000sqft teaching facility’s lease is guaranteed by the University of Exeter and is for a term of 30 years.

Matt Jarvis, fund manager at Legal & General UK Property Fund, said the fund will continue to target universities like Exeter which have modern purpose built living and teaching accommodation.

“This acquisition is in line with our strategy for the UK property Fund to target income producing assets on longer leases as well as our ambition to increase our exposure to alternatives.”

Derek Gilby, Senior Fund Manager of the LPI Income Property Fund, commented: “The ability for LGIM Real assets to purchase these two elements in different funds was key to delivering the deal. It also demonstrates the breadth of our fund management platform which has enabled us to collaborate to satisfy our differing customer needs.

“This is an excellent buy for the fund, offering a secure long term income stream from a top investment grade University as well as satisfying our objective of continuing to secure public sector tenants for the Fund.”