Aviva Investors has completed the off-market purchase of a retail complex in York town centre.
As well as being the largest deal completed in the city in 2014, the £36m purchase of 1-17 Spurriergate from BP Investment Management is the largest UK regional high street investment since 2013.
The deal, at a 4% net initial yield, reflects the fund manager’s confidence ahead of 2016 rent reviews for the property’s two largest tenants, H&M and Zara.
The 37,000 sq ft property is also let to William Hill, Morrisons and Phones4U.
BP bought the building for £30m in 2009.
Aviva also this week bought Endeavour Park on the the Millbrook Trading Estate near Southampton for £37m, a circa 5.25% yield. The 15-acre park, being sold by the Diageo Pension Fund, is on the former NXP semiconductor factory site.
DTRE acted for Diageo and investment manager Cordea Savills on Endeavour Park; Colliers International represented Aviva. CBRE acted for Aviva on Spurriergate; HP Four acted for BP Investment Management.