Two main government pension funds have made their first purchase in Britain, acquiring an office building as part of plans to invest up to 1 billion pounds (RM5 billion) in the British property market.

Employees Provident Fund and Kumpulan Wang Persaraan acquired the office building in London for 156.7 million pounds, translating into a yield of 5.75 percent and a capital value of 802 pounds per sq ft, Jones Lang LaSalle Inc said today.

The two funds purchased the building from a consortium includes Aviva Plc, Invista SA, Henderson Global Investors and Liquid Realty Partners, said property services firm Jones Lang LaSalle, which advised on the deal.

Asian investors have been flocking to London to purchase property, taking advantage of their strong currencies and a relatively weak sterling.

- Reuters