Cardiff Tesco buy boosts M&G fund

The M&G Secured Property Income Fund has bought a Tesco superstore in Cardiff in an off-market deal, taking its assets above £800m.

Advised by Prupim, the fund paid £67m for the store in Culverhouse Cross in a 25-year sale-and-leaseback deal with annual RPI-linked rent reviews.

The fund was launched three and a half years ago and has been in demand from pension funds that want to diversify some of their inflation risk management away from index-linked gilts.

It has invested £350m in the past seven months, including providing £81m of funding for a Premier Inn Hotel at Gatwick Airport.

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