Norwich Union Commercial Finance has agreed to arrange debt on an £800m mixed portfolio being brought to market by Aviva Investors.
The portfolio comprises 47 properties managed by Aviva on behalf of Norwich Union Life & Pensions, Commercial Union and CGNU Life. The assets are spread across the country and comprise 250 tenancies with an average unexpired lease term of longer than nine years.
The portfolio will be the largest to come to market since the Dawnay Day properties were put up for sale in September for around £600m.
NU also agreed to provide debt on the acquisition of that portfolio. It offered a fixed-rate loan with an LTV of70-80% on a 15- to 25-year term on the deal. The financier is expected to offer a similar package on this purchase.
Joel Lindsey, head of Aviva Life Funds, said: “There have been increasing signs of late that UK and overseas investors are looking to move back into UK commercial real estate, and the opportunity to secure debt financing is likely to further support that interest.
“The decision by our investorsto reduce their UK real estate exposure has been driven by its performance over the past few years relative to falling values in other asset classes, which has resulted in an overweight allocation to UK real estate.”
DTZ is advising Aviva.
