The Canada Pension Plan has paid $253 million for a 50 per cent interest in one of Scotland's largest malls.

CPP and its partner, Hammerson PLC, acquired Retail Property Holdings Ltd. from the Elementary Property Company Ltd., the companies announced Monday.

RPH's main holding is Silverburn, a 1-million-square-foot shopping complex roughly 10 kilometres south of Glasgow. The deal also includes rights to an additional 6.9 hectares of land surrounding the site.

The site currently brings in $31.4 million a year in rental income from 94 tenants who cater to 14 million shoppers a year, the CPP investment board said in a release Monday. A number of tenants whose leases are up for renewal beginning in 2012 are paying 20 per cent below market rates for their stores, the release said.

Hammerson PLC is a leading European real estate management company with more than $8 billion in assets under management.

"We are delighted to be partnering with Hammerson as co-investor and manager, given their proven track record in managing similar assets," CPP investment board vice-president Graeme Eadie said. "This transaction represents a unique opportunity to acquire a high-quality asset alongside one of the top retail developers and operators in Europe."

The Canada Pension Plan investment board manages the pension assets for 17 million Canadian contributors and beneficiaries. As of Sept. 30, it had $123.8 billion in assets.