Making it happen

Raise capital against existing assets or finance new developments

Most of our funds come from UK pension schemes and our annuity business. As they are ungeared, decisions are made and due diligence is performed in house, allowing for flexible solutions and quick, efficient delivery.

Contractual approach

Our contractual approach is flexible but broadly follows one of the structures outlined below. These structures are tried and tested allowing for quick execution.

Traditional structure

Aviva Investors fund purchases the freehold.

  • Lease to tenant (c.25 years)
  • Rent reviewed annually in line with RPI

Amortising lease/Income strip (freehold)

Aviva Investors fund purchases the freehold.

  • Lease to tenant (c.30 years)
  • Rent reviewed annually in line with RPI
  • Upon expiry of the lease the tenant benefits from an option to purchase the freehold for £1

Amortising lease/Income strip (leasehold)

Tenant

  • Long leasehold (c.125 years) peppercorn rent

Aviva Investors fund

  • Sub lease to tenant (c.30 years)
  • Rent reviewed annually in line with RPI
  • Upon expiry of the sub lease the tenant benefits from an option to purchase the long leasehold for £1, this then collapses the structure

Funding for development

Having provided over £1 billion of funding for the development of real estate, we understand the risks and complexities and have a proven delivery structure.

Funding provided during the development of an asset broadly follows these steps.

1. Developer partner achieves planning permission

2. Tenant enters into an agreement for lease

3. An Aviva Investors fund purchases freehold or long leasehold

Aviva Investors funds the development and manages all construction risks

4. Tenant enters into a lease at practical completion over the agreed term

Tenant can choose to sub let or occupy the asset

5. At the end of the lease, depending on the structure agreed, the tenant can either:

A. Walk away or extend the lease

B. Purchase the freehold for £1

Real estate long income

We offer both private and public partners in-depth expertise across many sectors.

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Understanding outcomes

We listen to our clients, and aim to deliver successful funding solutions for both the public and private sectors.

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Why we're different

Our access to multiple sources of capital and specialist insight set us apart.

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FAQs

You can find the answers to the questions we hear most often here.

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View our real estate long income brochure