Strathclyde Pension Fund has bought its first property for its Clydebuilt fund, a retail park in Glasgow.
The UKβs largest local government pension scheme (LGPS) bought the Gallagher shopping park and adjacent development land through its Clydebuilt fund, which Scotlandβs Ediston Real Estate created earlier this year.
Ediston said Clydebuilt would benefit from the retail parkβs 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 Β£50m mandate earlier this year. Clydebuilt has an additional Β£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 βintensively manageβ in order to create additional value, improve yields and maximise returns.
Danny OβNeill, founding director of Ediston, said in May that it was looking to invest in property that was βout-of-favourβ with large institutional investors.
OβNeill 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 Β£10m across the UK.
Earlier this year, Strathclyde was among bidders for Glasgow airport as part of a consortium with Partners Group.
