Strathclyde Pension Fund has bought its first property for its Clydebuilt fund, targeting assets local to the scheme.

The UK’s largest local authority scheme bought the Gallagher shopping park and adjacent development land through its Clydebuilt fund, which Scotland’s Ediston Real Estate created earlier this year.

Ediston said Clydebuilt would benefit from the retail park’s 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 DTZ for the majority of its property investment management, gave Ediston a £50m (€62m) mandate earlier this year. Clydebuilt has an additional £25m of debt to use. Structured for seven years, the fund has an option to be extended depending on its performance.

Ediston said it is sourcing assets which it can “intensively manage” in order to create additional value, improve yields and maximise returns.

Danny O’Neill, founding director of Ediston, said in May that it is looking to invest in property “out-of-favour” with large institutional investors. O’Neill 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 £10m across the UK.

Earleir this year, Strathclyde was among bidders for Glasgow airport earlier this year as part of a consortium with Partners Group.