The pubs have been sold for £42.7 million ($61 million) and they produce an annual income of £3.2 million ($4.6 million). Quintain will reinvest the proceeds in other asset classes. Quintain still owns £5 million ($7 million) of pubs which it plans to transfer into Quart at a later date, and the fund also has £6 million ($8.5 million) set aside to acquire new stock

Quintain already has a track record of setting up funds to hold specialised assets, through Quercus, its nursing home joint venture with CGNU. In both cases Quintain retains an asset stake as well as being responsible for the day-to-day asset management.

Richard Harrold, Chairman of Hermes Property Asset Management, said: 'This is an excellent venture which gives our funds exposure to another sector which is evolving. The combination of gearing, experienced, incentivised management and good growth prospects promises strong returns.'