Aviva Investors Real Estate Finance refinances £132m legacy portfolio for Bourne Capital

Ten-year loan backs Queensway and Waterloo Estate redevelopments and future deal-flow.

Northend Shopping Street

Aviva Investors, the global asset management business of Aviva plc, has refinanced Bourne Capital’s Legacy Portfolio, which comprises the Queensway and Waterloo estates.

Aviva Investors has agreed a 10-year, fixed-rate loan with Bourne at a loan-to-value ratio of around 40%. The loan will enable Bourne to progress the ongoing repositioning of its major London estates together with future redevelopment and investment opportunities. 

A £40 million redevelopment programme is already underway at Bourne’s Queensway Estate, which comprises the top third of the street. It is set to deliver a new urban quarter offering local residents, businesses and visitors a mix of retail, office, homes and new public spaces.

In 2016, Bourne completed a major refurbishment programme across its Waterloo Estate which included the repositioning and rebranding of over 120,000 sq ft of offices under its serviced office brand, Local London. Bourne is now focused on securing planning consent for a partial redevelopment of its Waterloo Holdings which has the potential for over 250,000 sq ft of office and retail development.

The Legacy Portfolio is part of Bourne’s wider, diverse central London portfolio, which includes leisure assets such as Ronnie Scott’s jazz club and the Criterion Theatre.

Ben Bourne, Managing Director of Bourne Capital said:

“We are delighted to have partnered with Aviva Investors, which shares our long-term vision for the estates. With the benefit of long-term fixed rate facilities, the business is in a strong position to realise its potential as well as capitalise on new investment opportunities over the next 2-3 years.”

Gregor Bamert, Head of Real Estate Finance at Aviva Investors, added:

“We are very pleased to start a long-term lending relationship with Bourne Capital which has a long-standing ownership of these well-diversified estates and a clear future strategy supported by ongoing capital investment. Bourne, alongside many other borrowers, sees the compelling nature of fixing interest rates at this point in the cycle.”

Notes to Editors

Bourne Capital is a well-established, family owned real estate focused investor and developer with a diverse array of interests in commercial, residential and leisure operations.

The Group focuses on complex real estate backed investments to fully utilise its hands on approach and active management to drive returns well in excess of what is normally achievable in the markets it operates in.

Its current portfolio incorporate two of London’s most iconic and strategically important estates, the Waterloo Estate and the Queensway Estate, as well as its bespoke flexible working brand, Local London. 

Aviva Investors

Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 14 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £348 billion as at 30 June 2018.

Aviva Plc

  • Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers.
  • In the UK we are the leading insurer serving one in every four households and have strong businesses in selected markets in Europe, Asia and Canada. Our shares are listed on the London Stock Exchange and we are a member of the FTSE100 index. 
  • Aviva's asset management business, Aviva Investors, provides asset management services to both Aviva and external clients, and currently manages over £348 billion in assets. Total group assets under management at Aviva group are £490 billion.
  • Aviva helps people save for the future and manage the risks of everyday life; in 2017, we paid out 98% of all our claims across all our markets and insurance products. We paid £34.6 billion in benefits and claims in 2017.
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