Henderson Global Investors has teamed up with Canada Pension Plan Investment Board to form a joint venture to buy Land Securities retail interests in Canterbury city centre.

The joint venture has paid £253m for the 600,000 sq ft of retail space in Canterbury city centre which is made up of the Whitefriars Quarter, anchored by Fenwicks, Marks & Spencer the Clocktower and Marlowe Arcade.

Henderson Global Investors has bought the 50% for its UK Shopping Centre Fund. The price paid represents an equivalent yield of 4.85% and a net initial yield of 4.1%.

The retail scheme Francis Salway, group chief executive of Land Securities, said: ‘The capital from the sale of the Whitefriars scheme will be reinvested into other projects within our significant retail development programme, which currently totals over £1.1bn.’

Canada Pension Plan Investment Board is making a number of investments in the UK this year. It has taken a stake in Westfield’s Westfield UK shopping centre fund and is in talks to buy a stake of ING’s Northgate shopping centre in Chester.

Cushman & Wakefield acted for Land Securities, Morgan Williams acted for the purchaser.