Aviva Investors raises over GBP200m for UK recovery fund
Aviva Investors has raised in excess of GBP200m for the Aviva Investors UK Real Estate Recovery Fund.
The closed-ended, ungeared fund seeks to invest in UK commercial real estate across a range of high-performing sectors over a five year period.
The fund is aimed at institutional investors.
Fund managers Rob Walton, head of UK institutional real estate funds, and Anna Rule, senior fund manager – real estate, have over 30 years’ combined commercial real estate experience and have worked together for the last six years at Aviva Investors.
Richard Jones, head UK real estate, Aviva Investors, says: “We are delighted by the level of investor interest in our UK Recovery Fund. This can be taken as a vote of confidence from investors in the prospects for UK commercial property and the quality and expertise of the Aviva Investors real estate business, at a time when numerous fund providers are looking to raise money.”
Since launch at the end of November 2009, the fund has purchased three properties in separate transactions, with a further two due to exchange imminently. The five assets will total approximately GBP50m.
Walton says: “The fund’s strategy is to acquire lower risk assets that are let to strong covenants on long leases in sectors and sub-sectors that we forecast to be top performers. These acquisitions meet those criteria, with leases ranging from ten to 25 years, the majority having minimum or fixed uplifts on reviews.
“The first three assets that the fund has purchased are a hotel with supermarket, a provincial office and a retail warehouse. We expect to exchange on two more properties in the near future; another retail warehouse and a Greater London high street retail property. We are currently working on a strong pipeline of other opportunities and look to be fully invested by mid 2010.”
Aviva Investors manages over GBP21bn in real estate assets globally as at 30 June 2009.