and Legal & General Property (LGP) have bought a UK property unit trust from Cordea Savills for £370m (€473m).

The joint venture said it has now completed the deal to buy the Bishopsgate Long Term Property Fund Unit Trust at a net initial yield of 6%. 

Legal & General Capital (LGC) provided a £142m facility to the partnership at a 40% loan-to-value ratio.

The portfolio was previously debt free.

L&G will manage the fund’s portfolio of 24 UK commercial properties for the Dutch pension fund manager.

Mathieu Elshout, senior investment manager at PGGM, said the portfolio included “well-located, high-qualityâ€� UK assets, with “significant opportunitiesâ€� to add value and enhance income return through asset management.

“We look forward to making similar investments in due course,� he added.

PGGM and LGC are acting as limited partners, with LGP as fund manager.

The joint venture said its investment plan was to target a “strong return through a strategy of optimising property-level business plansâ€�.

The portfolio, which is 2.3% vacant, has a bias to London and the south of the UK, with nearly 60% of assets by value in the two regions and the remaining 40% of the portfolio in major regional UK cities, including Manchester, Cardiff, Leeds and Glasgow.