One of the UK’s largest pension funds has acquired a 50% share in the Willow Brook Centre, Bradley Stoke’s new town centre currently under construction at Savages Wood Road. Supermarket group Tesco has announced that it has agreed an £80 million joint venture with the massive BP Pension Fund, whose assets were recently valued at £14.7 billion.
The fund, which has 12,000 active members, is one of the few in the country that remains open to new members and has assets which exceed its liabilities by 35%. In fact it is so well over-funded that the BP company is not currently making contributions into the fund.
The joint venture, which enables Tesco to release funding for other development projects elsewhere, is reported to generate a yield of 5.35% for the fund.
Tesco’s press release claims that the deal “highlights the investment that Tesco brings and attracts, even in the in the present [economic] climate.”
