LaSalle Investment Management’s Garden Centre Fund, which holds the freehold of eight garden centres, has been acquired by Black Rock in what is believed to be one of the largest deals of its type in the UK.

The tenants include Cadbury, Bicester Avenue and Endsleigh, all owned by Wyevale Garden Centres.

LaSalle put the fund, set up in 2006, up for sale earlier this year, looking for bids in excess of £110m. The deal price is reported to be £112.5m, which represents a yield of more than 5.5%.  The sale is understood to have crystallised a significant return for its investors.

With the average unexpired length of the leases said to be around 29 years, the rental income gives Black Rock a yield of 5.25%.

The other five tenants are: Stanmore (Squires), Woodford (Notcutts), Cardiff, Stevenage and Wimborne (all Wyevales).

The sale is reported to have attracted interest from a number of UK institutions – the latest sign of institutional appetite for alternative sectors that offer long income streams that can be matched to annuities, according to Estates Gazette.

The portfolio is regarded as an unusual one and therefore difficult to price.

However, Strutt & Parker’s head of out-of-town retail Andrew Hulme has been quoted as saying that investors were attracted by assets such as garden centres or service stations where the tenant on the headlease did not necessarily account for the majority of the income. Wyevale is among garden centre groups who have built concession income into their growth plans in recent years.

Wyevale still owns around 70% of its 149-centre portfolio freehold.

The keen interest attracted by the LaSalle sale has led Observers to speculate that Wyevale may consider further sale and leaseback deals.

Estates Gazette says owner Terra Firma was reported to be considering a £700m sale or listing of the business last year. It bought the company in 2012 for £276m.