Aviva Investors funds new Cambridge office building with PSP Investments
Aviva Investors, the global asset management business of Aviva, and the Public Sector Pension Investment Board (PSP Investments), one of Canada's largest pension investment managers, are to jointly fund a brand new office building at 20 Station Road, Cambridge.
Aviva Investors and PSP Investments are jointly funding the 65,000 sq ft development, which has been fully pre-let, to a premium flexible workspace provider, through a joint venture.
The building, which is being developed by Brookgate, will offer six storeys of high-specification office space, including open desks, private offices, meeting rooms, wellness areas, event space and roof terraces. It has been designed by award-winning architecture and design firm tp bennett, with construction expected to be completed in 2023.
20 Station Road adds to the existing portfolio of ground-up and standing assets that Aviva Investors and PSP Investments have acquired in Cambridge, with both firms viewing the city as a particularly attractive market for gaining exposure to high-quality UK real estate that caters to businesses, communities and individuals. In November 2019, the partnership announced an agreement to invest up to £250 million in commercial property across the CB1 Estate, a master-planned development spanning 26 acres, which includes:
• 30 Station Road, a 81,500 sq ft scheme that is pre-let to a leading global technology company on a 10-year FRI lease. Construction commenced in September 2019, with completion scheduled for Q3, 2021.
• 50/60 Station Road, a 167,000 sq ft grade-A development completed in April 2019, which was fully let in 2019 to leading technology and professional services businesses including Brewin Dolphin, the private wealth manager, Genomics, the genome research specialist, and WeWork.
Daniel McHugh, Managing Director, Real Estate at Aviva Investors, says: “We are very pleased to grow our partnership with PSP Investments, in a city which we believe represents one of the most attractive real estate opportunities in the UK. We believe that adding 20 Station Road to our existing portfolio provides us with a high-quality asset that sits well within our strategic focus on core locations, and which can offer long-term growth and performance potential for investors.”
Stéphane Jalbert, Managing Director, Europe and Asia Pacific, Real Estate Investments, PSP Investments, says: “The continuation of our partnership with Aviva Investors in Cambridge reflects our confidence in the city’s long-term performance potential as a centre of innovation. Cambridge’s world leading education and research institutions act as a hub and anchor for the artificial intelligence and life science disciplines, making the region a key knowledge cluster driving future performance”
Melanie Collett, Head of Real Estate Asset Management at Aviva Investors, says: “With the nature of the office market changing, we are seeing a flight to quality assets in areas rich with knowledge capital. Demand for office space remains elevated in locations such as Cambridge given its strong location. Not only is the city a significant knowledge hub and a leading centre of research in technology, biotechnology and life sciences, but its world-leading universities means it can offer a wealth of future talent to those industries. We see these as being critical characteristics in determining successful cities of the future.”