(London) – Aviva Investors, the global asset management business of Aviva plc, announces it has agreed to provide more than £37 million in green loan financing for the redevelopment of an office building in Central London, located in Fitzrovia. The investment has been made through its Multi Sector Private Debt Long Term Asset Fund (‘LTAF’).
The redevelopment scheme, located at 95 New Cavendish Street, will deliver more than 22,000 sq ft of office space when complete and is being brought forward by AEW with LBS Properties acting as Development Manager.
The new building is targeting an EPC ‘A’ rating and BREEAM ‘Excellent’ certification, alongside a Wiredscore Gold, which focuses on digital connectivity.
The Aviva Investors Multi Sector Private Debt LTAF is designed for DC pension funds looking to diversify returns from traditional asset classes such as public equity and fixed income, as well as wider Private Markets allocations and single private debt strategies. The Fund aims to produce a diversified portfolio of investments, including opportunities in Real Estate Debt, Infrastructure Debt, Structured Finance and Private Corporate Debt.
Aviva Investors’ provision of debt financing for the project on New Cavendish Street builds on its wider investment portfolio in Central London offices, which includes development schemes across the City of London and London’s West End.
Sima Kotecha, Head of High Yield Strategies, Real Estate Debt, at Aviva Investors, said:
“We are very pleased to extend our existing relationship with AEW and to provide financing towards what is an ambitious redevelopment scheme in the heart of Central London. This is a terrific example of how we are helping the commercial real estate sector get ready for the future, by funding the retrofitting and futureproofing of existing building stock. It also shows how, through our private debt LTAF, we are able to support a broader range of activities by our borrower clients, whilst also providing our investors with the benefit of greater risk and return diversification within their private debt portfolios.”
