The joint venture invested 67 million pounds in a development in Soho in London's West End district, L&G said in a statement, for an initial net yield of 4.7 percent.

The joint fund has an initial investment allocation of around 375 million pounds, L&G added, and "will be looking for assets ranging between 30 million and 90 million pounds which require significant improvement and where they can be part of a wider regeneration story".

L&G said this week it would allocate 1.5 billion pounds to a new fund for British infrastructure projects and seek external financing to expand the fund to 15 billion pounds.

(Reporting by Carolyn Cohn; editing by Nishant Kumar)