UK - West Sussex local authority pension scheme has acquired two UK assets for a combined total of just over £19m (€23.1m) as part of a £200m UK portfolio targeting core and core-plus real estate assets.

The assets, acquired by Cushman & Wakefield on the £1.9bn scheme's behalf, are a Tesco superstore in Cornwall acquired for £11.8m via sale and leaseback, and a £7.6m office asset on the outskirts of the capital's financial district.

Both were selected for their income-producing characteristics.

Investor relations manager Gareth Fernandes told IP Real Estate the West Sussex mandate had been "very specific", targeting assets across sub-sectors across the southeast of England.

He contrasted it with other pension fund mandates that allowed slightly more flexibility in targeting off-prime assets, or those in need of management.

Acknowledging the difficulty of sourcing prime property assets at credible prices, he attributed the relatively low price of the office asset announced today to the fact it was a long way from the City.

"These days, if you're looking at retail, you don't look in Bond Street," he said.

In a written response to questions, head of investment management Peter Balfour said:

"Index-linked and long-income investments are very popular in the current market and in short supply.

"We have focused on assets with high underlying values and have waited to find the right investments before committing."

The acquisitions announced this week indicate the scheme has reached the end of its allocation.

"We have little capital left to spend on their behalf," said Fernandes.

Earlier acquisitions within the mandate included a £17m City office block opposite Liverpool Street station and a £5.9m office asset in the southeast.

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