Standard Life Investments has invested £165m (€216m) in a portfolio of UK regional properties sold by Aviva Investors.

The investment manager said its Property Income Trust (SLIPIT) had bought 22 assets worth £165m from Aviva Investors.

The deal increases the trust’s gross assets by 50%.

Jason Baggaley, fund manager of SLIPIT, said: “The portfolio is an ideal fit for the fund and reinforces our strategy to provide income and income growth for investors, as we get closer to the end of capital growth in this cycle.

“The properties are highly complementary to SLIPIT, being well diversified by sector, tenant and location,” he added. “They also improve our exposure to the greater London market where there is solid rental growth, predominantly in office and industrial sectors.”

Baggaley said the portfolio, which includes office properties near London, industrial sites in Bristol and Manchester and retail in Southend and Newcastle, offers active asset management opportunities to increase rental income.

“With investors searching for income in current volatile markets, we expect real estate to provide an attractive source of income throughout 2016,” he said.

The trust, which sold two assets late last year and raised fresh equity, used £75m of new capital to acquire the portfolio, along with debt and cash reserves.

Standard Life said the trust currently provides a 5.8% dividend yield.

Aviva Investors said the portfolio was sold from its higher-yield, second UK real estate recovery fund.

Anna Rule, manager of the fund at Aviva Investors, said: “Towards the end of last year, we made the decision that prevailing market conditions presented an attractive opportunity to execute an exit strategy of the portfolio after already achieving the investment target.”

The fund, launched in 2013, had been backed by 13 UK and European institutional investors and delivered a 18.7% total income return, against a target of 8%.