UK - The £2bn (€2.1bn) Teesside Pension Fund, administered by Middlesbrough Council, has purchased its first real estate asset through its recently-appointed property manager LV Asset Management (LVAM).

LVAM acquired Bromford Central Industrial Estate in Birmingham, England, on behalf of the pension fund, from Standard Life Investments for £8.96m, reflecting an initial yield of 8.5%.

The 155,000 square foot property, developed in 2002, has an average unexpired term in excess of 10 years.

LVAM, the fund management arm of the mutual insurance and investment group Liverpool Victoria was selected by Middlesbrough Council at the beginning of the year to manage the pension fund's £89.7m UK property portfolio and increase its exposure.

Teesside Pension Fund has long-term plans to diversify its indirect real estate portfolio internationally by gaining exposure to Asian property markets, but this is not the primary focus at the moment, said Fred Green, head of investments at the fund.

Green revealed the pension fund was concentrating on opportunities in the direct UK property market at the moment and potentially had approximately £20m to spend in the short-term.