The BT pension scheme is the latest investor to seek an international property tie-up, as bonds wane in popularity and institutions look to anchor their liabilities on rental income and infrastructure.

Under the terms of a deal announced Thursday, the BT Pension Scheme and the Canada Pension Plan Investment Board will set up a 50:50 joint venture to invest in global real estate. Initially, the BT pension scheme will inject eight office properties in London's West End into the partnership with Canada Pension paying £174m for a 50% share owned through BT's Hermes Real Estate Investment Management offshoot.