Aviva Investors has agreed a deal with Gravesham Borough Council and developer Reef Group to fund a shopping centre regeneration scheme in Gravesend, Kent.
Plans for the St George’s Centre site include a cinema and restaurants, as well as improvements to the retail and leisure offering in the town.
The income strip deal has allowed Aviva Investors to acquire the asset, alongside an agreement with the council to pay rental income of £1.15m per year over 50 years, subject to inflation.
The transaction was secured on behalf of Aviva Investors’ REaLM (Returns Enhancing and Liability Matching) Commercial Assets Fund, which targets secure, long-term and inflation-linked income streams for pension funds.
Mark Wells, director at Aviva Investors, said: “This transaction is another strong example of a win-win situation for both a local authority wanting to progress a key development and our pension fund clients, who are looking for long-term income.
“Having forged the partnership with Gravesham Borough Council and Reef Group, we are confident that the development plans for the St Georges Centre and the wider area will contribute to the regeneration of Gravesend. We are investing in such properties for our REaLM Commercial Assets Fund, and have a strong pipeline that will support our efforts to expand the platform.”
David Turner, leader of Gravesham Council, added: “This is a major step in the regeneration of Gravesend town centre and for Gravesham as a whole. By working with Aviva Investors and Reef Group, we will stabilise and invigorate the retail environment of the St George’s Shopping Centre by introducing a leisure offer and improve the centre’s signage and branding, walkways and general environment.
“By modernising and improving the overall look of the centre and developing a specific leisure area with a boutique cinema and a small number of restaurants, we will be creating a new shopping and leisure experience in Gravesend.”
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