Alpha Real Capital (Alpha) has agreed a deal with rival real estate investment firm Queensgate Investments (Queensgate) for the ground rent transaction of a property portfolio worth £1bn.

The agreement consists of three central London hotels which were previously purchased by Queensgate, and was signed off by Alpha as part of its "Index Linked Income Fund" (ILIF), a commercial ground rent fund which is supported chiefly by pension funds and additional institutional investors and targets inflation linked assets.

This is the fund’s biggest transaction to date, and takes ILIF's total assets past £1.4 billion across more than 500 properties.

Hugo James, partner and head of long income at Alpha Real Capital said: “We are delighted to have acquired the ground rents of these three hotels from Queensgate. Their acquisition caps a successful year for the Fund in which it has invested approximately £600m of new capital into UK commercial ground rents.”

Phillip Rose, CEO, of Alpha said that the deal highlighted the level of support the investment firm enjoyed from real estate owners.

He said: "Alpha works very closely with real estate owners and operators to deliver flexible long-term capital solutions. Alpha's reliability and responsiveness to the needs of both owners and operators is reflected in the £1.4 billion of commercial ground rent investments we have made over the last few years".

Alpha was founded in 2005 and has over £3bn of assets under management, focusing primarily on long income investing such as freehold ground rents, social infrastructure, and renewable energy infrastructure.