Strathclyde Pension Fund has bought its first property for its Clydebuilt fund, a retail park in Glasgow.
The UK鈥檚 largest local government pension scheme (LGPS) bought the Gallagher shopping park and adjacent development land through its Clydebuilt fund, which Scotland鈥檚 Ediston Real Estate created earlier this year.
Ediston said Clydebuilt would benefit from the retail park鈥檚 secure, long-term income. As well as existing properties, the park has planning permission for a further 200,000sqft of retail warehousing. The scheme is part of a wider regeneration plan for the area.
Strathclyde, which uses for the majority of its property investment management, gave Ediston a 拢50m mandate earlier this year. Clydebuilt has an additional 拢25m of debt to use. Structured for seven years, the fund has an option to be extended depending on its performance.
Ediston said it was sourcing assets which it can 鈥渋ntensively manage鈥� in order to create additional value, improve yields and maximise returns.
Danny O鈥橬eill, founding director of Ediston, said in May that it was looking to invest in property that was 鈥渙ut-of-favour鈥� with large institutional investors.
O鈥橬eill said he hoped to have Clydebuilt fully invested by year-end. The fund is looking to invest in up to 10 properties.
Strathclyde has traditionally focused on investments of over 拢10m across the UK.
Earlier this year, Strathclyde was among bidders for Glasgow airport as part of a consortium with Partners Group.
