Standard Life Investments has bought a Tesco Extra Supermarket in
The supermarket was bought as a sale and leaseback from Tesco, at a net initial yield of 5%.
Standard Life said the rent benefits from RPI uplifts for 20 years.
This latest purchase follows the acquisition of the Tesco Extra in Irlam in January for £49.6m, at a net initial yield of 5%.
Mike Hannigan, fund manager, Pooled Property Pension Fund, said: “The RPI linked nature and the length of the income, twinned with the strength of the Tesco covenant, offers the Pension Fund an extremely attractive investment in these times where there are still inherent risks to funds from tenant weakness.
“The Pension Fund has a policy of offering clients a highly diversified direct property exposure and the attraction of these two investments, with their security of income for long durations, fits well with the fund’s objectives at this stage in the cycle.”
