UK -The £28.5bn (€35.6bn) Universities' Superannuation Scheme was today officially named as one of four buyers involved in the latest £605m sale and leaseback of UK stores owned by supermarket giant Tesco.
An official statement confirms the supermarket chain has done a deal concerning 13 stores - amounting to 2.4% of its UK Stores portfolio - and a distribution centre by completing 100% sales with three asset managers and creating a joint venture with the UK's second-largest pension fund.
Prupim, Canada Life and LaSalle Investment Management bought properties outright while USS followed the joint venture path trodden at earlier dates by Prupim, British Land and British Airways Pension Fund, but all four parties are leasing the properties back to the company on RPI-linked leases.
Officials say the lowest yield achieved on the stores was 4.88% for a total floor space of 1.7 million square feet.
USS will place the joint venture within its targeted allocation of 20% to alternatives over the medium term, though the actual allocation currently amounts to approximately 5%.
IPE Real Estate revealed earlier this week USS had signed a sale/leaseback deal with Tesco. (See earlier IPE story: Sources confirm Tesco USS real estate deal)
The Universities Superannuation Scheme is the pension fund for 378 universities and academic institutions and provides benefits to approximately 250,000 members.