UK - Standard Life Investments has bought a central London property on behalf of its Pooled Property Pension Fund for £20m (€28.8m).

It said it bought the freehold interest of 36-39 Poultry and 1-6 Old Jewry in the City financial district for the £2.2bn fund and will develop it speculatively. The vendor was CGIS, Standard Life said.

"The purchase of 36-39 Poultry reflects our confidence in the City of London office market," said Mike Hannigan, director of the fund at Standard Life Investments.

"With delivery of the new building scheduled for mid 2007, it will be ideally placed to take advantage of the anticipated rental growth and restricted future supply of Grade A accommodation in the City."

Strutt and Parker acted for Standard Life in the deal. They and BH2 will be agents for the completed development. The architect is Sheppard Robson.

Standard Life has another speculative development for the fund, in the upmarket West End district at 198-202 Piccadilly and 33/34 Jermyn Street.

This was bought TR Property Investment Trust plc in July 2004. It said the demolition contractors have now started on site - development would be completed in 2007.