Insurance giant Aviva is to launch a review of its global operational property portfolio in a bid to cut costs across the business by £400m.
The group’s estate in the UK alone extends to 250 properties, totalling more than 5m sq ft.
The exercise forms part of a major shake-up of the insurer that will lead to the disposal of 16 underperforming business segments.
BNP Paribas Real Estate is expected to lead the review of Aviva’s occupational estate, having won a five-year contract to provide property advice to the group in 2010.
UK assets include regional offices in Norwich, York, Eastleigh, Glasgow, Perth, Leicester. Bristol, Southend, Manchester and Sheffield.
In London, the group is headquartered in the 300,000 sq ft Aviva Tower, 1 Undershaft, EC3, and has a further 70,000 sq ft occupied by its fund management business, Aviva Investors, at 1 Poultry, EC2.
Aviva Investors has an upcoming lease break on the office and its retained agent, CBRE, is reviewing options for the business, including a re-gear of the lease or a potential move.
In an update to shareholders, Aviva chairman John McFarlane said its strategic plan aimed to narrow the company’s focus.
Of the group’s 58 business segments, he said 15 were performing, 27 needed improvement and 16 were non-core and likely to be sold. He did not name the underperforming units.
McFarlane said the company aimed to achieve £400m of savings “by conducting a review of the group centre and other support, technology and operating costs across the group, removing the regional layer of our structure, as well as more effective allocation of expenses across the business portfolio”.
All parties declined to comment.
Jack.Sidders@estatesgazette.com
