UK – The British Telecom, Royal Mail and BAe Systems pension schemes have invested in a real estate fund focused on small retail parks in the UK.

Property investment firm Pillar Property – which is being bought by British Land for £811m (€1.178bn) – said the schemes had recently joined HIF, its new Jersey-based investment trust.

It said: “We have recently been joined by the BT, Royal Mail and BAe pension funds, as co-investors.” The portfolio currently stands at £119m. Pillar has 67.3% of the fund.

Pillar said HIF has been formed to invest in small retail parks – “this being a key sub-sector of the UK retail warehouse market”.

Pillar owns around £1.3bn in property assets. British Land said: “Retail warehousing has been and is expected to remain one of the most attractive asset classes with strong prospects.”

As part of the acquisition, British Land today bought GE Pension Trust’s 21.5% stake in Pillar.