UK - The £28bn (€31.7bn) Universities Superannuation Scheme continues to rebuild its domestic real estate portfolio by purchasing a portfolio of industrial assets measuring 2.9 million square feet for £196m (€226m), reflecting a yield of 8.7%.
The Equiton Industrial Portfolio was acquired by USS from a joint venture between Prupim, which owned 44%, Brixton (30%) and Liquid Realty (26%).
The portfolio is reported to have previously been under offer to Westbrook Partners.
The latest acquisition follows a number of industrial and retail investments made in the UK by USS this year, including the purchase of Marsh Mills retail park in Plymouth, Prologis Park industrial estate in London and a 20% stake in the Grand Arcade shopping centre in Cambridge (giving full ownership to USS).
The UK pension fund will continue to focus on its domestic real estate market in the short-term, according to Graham Burnett, head of property at USS.
The majority of USS's property exposure is in the UK market, but the pension fund did enter into a joint venture with First Property in 2005 to invest in central and eastern Europe.
Burnett said he would not be assessing opportunities in continental European real estate markets until next year.
USS' portfolio asset allocation to October 2008 was 35% in UK equities, 42% in overseas equities, 9% in fixed interest, 6% in property, 3% in cash and other and 4% in alternative investments.
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