Aviva Investors completes £72.9 million sustainable transition loan facility with Commercial Estates Group

(London) – Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), has announced the completion of a £72.9 million sustainable transition loan agreement with Commercial Estates Group (‘CEG’), the property investment management and development company.

The senior debt facility, which is provided over seven-year fixed- and floating-rate tranches, forms part of Aviva Investors’ commitment to originating £1 billion in sustainable transition real estate debt over the next four years following the launch of its proprietary Sustainable Transition Loans Framework in December last year.

The transaction is structured with KPIs that are linked to sustainability improvements on assets in the portfolio. CEG will benefit from a margin reduction for delivering specific targets which will be assessed annually throughout the life of the facility.

Whilst CEG will use the loan proceeds to refinance a portfolio of six regional office assets, a portion of it will part-fund the development of Globe Point, a 37,842 sq ft Grade A office in the Temple area of Leeds, which forms the first part of a £350 million project by CEG. The iconic seven-storey building will deliver office space with ground floor break-out space, a café, and will aim to achieve a BREEAM excellent and EPC A rating.

The six regional office assets are located in strongly performing markets such as Liverpool and Bristol, and feature a highly granular mix of over 100 tenants. CEG has invested heavily in the assets to provide modern flexible space with a focus on amenity and wellbeing that appeals to occupiers.

Aviva Investors is providing the financing on behalf of a number of third-party client mandates, which it expects will benefit from a strong and predictable income streams.

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

“We are pleased to have an opportunity to work with CEG through the provision of this sustainability linked loan, following active discussions over a number of years. CEG have a stated commitment to sustainability and improving the green credentials of its portfolio, which both parties were keen to incorporate into the loan. It is also pleasing to be able to fund the development of a new high-quality asset such as Globe Point. Despite short-term headwinds in the local office market, we are confident this portfolio will perform strongly given CEG’s active management capability and the quality of buildings it produces.”

Gerard Versteegh, Chairman of Commercial Estates Group, commented:

“We are delighted to be working with Aviva Investors as a strategic partner. We expect this will lead to a long, fruitful collaboration on many more projects to come. Our approach to sustainability is ambitious and embedded into everything we do. We continue to push the innovation boundaries to ensure well-being, technology and sustainability are at the heart of Globe Point.”

For more information contact:

A picture of James Morgan

James Morgan

Media Relations Manager

A picture of Steve Ainger

Steve Ainger

Head of Media Relations

Important information

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 11 April 2022. Unless stated otherwise any views and 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. 

Issued by Aviva Investors Global Services Limited, registered in England No. 1151805. Registered Office: St Helen's, 1 Undershaft, London, EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority.

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 £268 billion in assets under management as at 31 December 2021.

Aviva PLC

We are the UK’s leading Insurance, Wealth & Retirement business and we operate in the UK, Ireland and Canada. We also have international investments in Singapore, China and India.

  • We help our 18.5 million customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
  • We have been taking care of people for 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2021, we paid £30.2 billion in claims and benefits to our customers.
  • Aviva is a market leader in sustainability. In 2021, we announced our plan to become a Net Zero carbon emissions company by 2040, the first major insurance company in the world to do so. This plan means Net Zero carbon emissions from our investments by 2040; setting out a clear pathway to get there with a cut of 25% in the carbon intensity of our investments by 2025 and of 60% by 2030; and Net Zero carbon emissions from our own operations and supply chain by 2030.  Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition and action at www.aviva.com/sustainability
  • Aviva is a Living Wage and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at www.aviva.com/about-us/our-people/
  • At 31 December 2021, total Group assets under management at Aviva Group are £401 billion and our Solvency II shareholder capital surplus is £13.1 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
  • For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us  
  • The Aviva newsroom at www.aviva.com/newsroom includes links to our spokespeople images, podcasts, research reports and our news release archive. Sign up to get the latest news from Aviva by email.
  • You can follow us on:

o    Twitter: www.twitter.com/avivaplc/  

o    LinkedIn: www.linkedin.com/company/aviva-plc

o    Instagram: www.instagram.com/avivaplc

For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva

Aviva Investors Global Services Limited
St Helen's, 1 Undershaft, London, EC3P 3DQ

Phone     +44 (0)20 7809 6000

Fax          +44 (0)20 7489 7940

Web        www.avivainvestors.com

Email      info@avivainvestors.com

Issued by Aviva Investors Global Services Limited, registered in England No. 1151805. 
Registered Office: St Helen's, 1 Undershaft, London, EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority and a member of the Investment Association.

Telephone calls may be recorded for training and monitoring purposes.

Latest company news