New York-based asset manager Area Property Partners has bought 30% of the X- Leisure fund from Britain's largest pension fund, BT Pension Scheme and Hermes Real Estate for a price said to be around £65 mln (EUR 75 mln). X-Leisure was created by Capital & Regional and Hermes RE in 2004 and currently owns £528 mln worth of assets. It was the best-performing UK real estate fund last year, according to Investment Property Databank.

The acquisition was confirmed on Wednesday by Capital & Regional, which owns an 11.9% stake in the fund.

'We welcome the acquisition by Area Property Partners of Hermes' stake in the X-Leisure Fund which will further enhance performance,' said Chief Executive Hugh Scott-Barrett. It is the latest joint venture with Area Property Partners following Capital & Regional and Area's joint acquisition last year of a 50% stake in the German asset manager Garigal, which owns a EUR 600 mln portfolio in the country.

Two years ago, Area also paid £50 mln for a stake in the Junction Fund, which is managed by Capital & Regional and owns UK retail parks.

X-Leisure owns the marina at Brighton and 18 other properties across the UK accommodating facilities such as indoor ski slopes, gyms, bowling alleys, movie theaters, shops, bars and restaurants. The vehicle, which is managed by a venture of Hermes and Capital & Regional recently negotiated new loan terms with the fund's banks.

The acquisition is earmarked for Area European Real Estate Fund III.