Aviva Investors completes £29 million refinancing of regional logistics assets

16 December 2019

Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), has completed a further advance of £28.9 million to refinance a portfolio of regional logistics assets, on behalf of the annuity business of Aviva UK Life.

As part of the deal, Aviva Investors increased its existing facility with South African specialist industrial real estate investment trust (REIT), Equites. The funding was used by Equites to refinance their recent purchase of Puma Sportswear’s distribution unit in Glasshoughton, West Yorkshire, along with two further assets.

Maturing in 2026, the further advance brings the total facility to approximately £76.9m, secured against six high quality distribution centres across the UK.

Gregor Bamert, Head of Real Estate Debt at Aviva Investors, said:

“We are delighted to continue to support Equites and the growth of their UK portfolio. Equites has demonstrated their knowledge of the sector building a high-quality portfolio with focus on property location and strength of covenants. It is an example of the attractive opportunities that still exist in the market to lend against well-let assets, set in good locations. We believe this deal should provide our investor clients with attractive, stable returns.”

Marcus Mollan, Director of Annuity Asset Origination at Aviva UK Life, added:

“This financing to Equites further expands the logistics component of our commercial mortgage portfolio.  Alongside other commercial mortgage investments we have made this year, including the provision of finance to the student accommodation, retail, office, industrial and hotel sectors, Aviva’s annuity business is proud to be continuing to support high-quality real estate up and down the country.”

Chris Guattari-Stafford, Head of Treasury at Equites Property Fund, commented:

“As a pure play logistics REIT, we continue to see considerable demand for our asset class from a wide array of stakeholders. Over the course of the past two years, we have forged a valuable mutual relationship with Aviva which has culminated in the issuance of a further advance of £28.9 million at the lowest cost of debt funding that the group has been able to achieve since it entered the UK market in June 2016. We are thankful to Aviva for their commitment to Equites and look forward to working together again in the near future.” 

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The information and opinions contained in this document are for use by the financial press and media only. No reliance may be placed for any purpose on the information or opinions contained in this document nor should they be seen as advice. 

The press release is provided on the basis that Aviva Investors Global Services Limited is not causing the communication of a financial promotion under exemption of the Financial Promotion Order, as Aviva Investors Global Services Limited has no control over the way in which an article based on this press release is prepared and published by the financial press and media. 

Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”) as at 04 December 2019. Unless stated otherwise any views, opinions expressed are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature.  The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested. 

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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 £346 billion in assets as at 30 June 2019.

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