Universities’ pension fund revs up £400m BP deal

The Universities Superannuation Scheme has agreed to buy a 49% stake in 199 BP forecourts for nearly £400m, in a sale and leaseback deal. The oil giant will retain sole operational control of the forecourts as tenant under new 20-year leases as part of the transaction, which was arranged by USS Investment Management. The majority of the properties are in the South East, on main roads and in urban locations. BP and USS will form a new joint venture holding structure which will become landlord. USS said the deal will allow BP to realise some of the value tied up in its freehold portfolio and to reallocate capital without affecting day-to-day operations.   Earlier this year the oil giant announced its ambition to become a net zero company by 2050 or sooner. Part of its strategy targets a near 10-fold increase in electric charging points globally, from 7,500 to 70,000 by 2030. Simon Pilcher, USS Investment Management’s chief executive, said: “This transaction allows USS to partner with a quality investment grade business in a long-term arrangement that supports our duty as a trustee to pay those pensions which have already been promised.” Alex Turner, deputy head of property at USS Investment Management, said: “This is a prime portfolio which is diversified across the UK and which benefits from sustainable rents set against the proven trading performance from both fuel and non-fuel sales.” USS’s existing property portfolio is valued at nearly £4bn and forms part of USS’s £18bn investments in private markets assets. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette