Aviva Commercial Finance is doubling the size of its real estate origination team as it works towards its £2bn 2014 lending target.
The lending business is recruiting four new originators to step up its presence in an increasingly competitive market and prepare for an expansion of its debt fund platform.
Three of the four hires will join its dedicated CRE loan origination and execution team, with one person to work on public private finance and infrastructure.
As well as originating loans for Aviva Commercial Finance – which provides long-term, fixed rate senior loans to match Aviva’s annuity book – the team also originates for Aviva Investors’ debt business.
This presently comprises the UK Commercial Real Estate Senior Debt Fund, but a follow-on vehicle that will provide whole loans for UK core and core-plus property is planned for next year.
Toni Miller, head of new business within the Aviva Commercial Finance team, said: “We have an ambitious target to lend for 2014 and although we have seen a rise in inquiries it’s a challenge to lend what we want to this competitive market.
“However, as we are investing predominantly for an annuity company that is cautious in its approach, we are not return-driven. We choose the right deal rather than chase volume.”
Aviva Commercial Finance’s £2bn lending target is double that of 2013. It has lent £350m in the year to date, typically providing loans of more than £25m at LTVs of up to 65% at “competitive pricing”.
The move comes as the two lending businesses are being merged, with former Lloyds Banking Group head of origination, Barry Fowler, taking over as head of the expanded Aviva Commercial Finance next month.
Miller added the recruitment programme also “had an eye” on debt fund platform expansion and that final deployment would depend on the experience of the hires and Fowler’s expansion plans.
bridget.o’connell@estatesgazette.com
