Universities Superannuation Scheme has made its debut acquisition in the educational property subsector with the purchase of a £95m portfolio of nurseries.
Pine Unit Trust was bought from private equity fund manager Epiris and the price paid reflects a yield of close to 6%.
It is let to tenants including Busy Bees, Bright Horizons Family Solutions, Treetops, and Bertram and includes a specialist educational needs facility leased to Priory Group on an average unexpired lease term of 21.2 years.
USS is targeting more assets in sector with index-linked long leases.
Mike Powell, head of private markets at USS, said: “As part of our innovative and flexible investment approach, we are increasingly looking at alternative property assets as a significant source of properties offering a diversity of tenants on long leases and backed by strong covenants.”
CBRE acted for Epiris; USS was advised by JLL and PwC.
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