Invista Real Estate has bought a portfolio of 317 houses in south-west England in a joint venture with Bank of America for £127.5m.

The UK’s largest listed property fund manager has acquired the assets, which were previously owned by HBOS and a joint venture partner. HBOS has a 55% shareholding in Invista.

The portfolio comprises 317 freehold houses in five locations in the south-west of England.

It includes parts of larger estates built between 2001 and 2003 under a PFI project to provide homes for Ministry of Defence staff. The portfolio has a long lease with the MoD and a gross yield of 6.7%.

The purchase is being financed by investments from Invista and Bank of America together with bank debt.

Duncan Owen, chief executive of Invista, said: ‘The deal represents an important transaction for Invista. Residential is a key growth area for our business going forward and this deal presents an excellent opportunity for us.”