Aviva Investors has confirmed that it has teamed up with Canada鈥檚 Public Sector Pension Investment Board to invest in Central London real estate.
Aviva Investors has confirmed that it has teamed up with Canada鈥檚 Public Sector Pension Investment Board to invest in Central London real estate.
The first step of the joint venture partnership involved PSP taking a 50% stake in its 拢1 bn (鈧�1.4 bn) central London portfolio held by Aviva Life & Pensions UK.
The initial 14-asset portfolio consists of existing properties and projects with planning consent, totalling 93,000 m2 of space.
Aviva Investors will act as asset and development manager on the joint venture, which will focus on office and retail properties.
Ed Casal, Aviva's global CEO of real estate, commented: 'We are well positioned to implement a number of attractive development opportunities within the portfolio and look forward to working with PSP Investments and our Aviva client as we bring these to fruition.
'Conditions remain strong in the Central London office sector as robust occupier demand continues to put upward pressure on rents. Similarly, Central London shops continue to benefit from low vacancy, booming tourist numbers and extremely strong demand from international retailers.'
CBRE acted for Aviva, JLL advised PSP.
The transaction marks PSP's second joint venture with a UK investment firm. In mid-2013, PSP teamed up UK-based REIT Segro to get access to the European logistics sector. Segro contributed virtually all of its assets in mainland Europe, valued at almost 鈧�1 bn, to the 50-50 partnership.
