MIPIM 2017: Aviva Investors is planning to invest more than £500m in UK real estate and sell £1.5bn in 2017 as it shifts its strategy from “commodity” products to places where people can “live, learn, work and play”.
“The announcement is that it’s back to basics, it’s working for our tenants and for our clients and for our communities to preserve our strength and really make a difference in the world,” said Ed Casal, chief executive and global head of real estate at Aviva Investors at EG’s public-private partnerships MIPIM 2017 panel debate.
“Simply, the real estate sector houses the economy and we are taking a much more concerted and focused effort, thinking about where the economic engines are going to be, whether they’re in healthcare or technology or consumer products, thinking about where those companies are, where they’re going to need to house their people from an office or housing standpoint, or how they’re going to move products from an investor standpoint.”
Aviva Investors has more than £340bn of assets under management globally, of which £29bn is invested in UK real estate, across equity, debt and infrastructure. Some 80% of its total real estate interests are in the UK.
Casal said Aviva was likely to do some portfolio sales this year as it looks to sell 200 properties across the UK. In terms of investment, he said they will be looking for “value-add” opportunities.
“We’re cautious on London right now but we’ll be back in when the time is right. We’re a believer in London as a global city for the long-term. Very positive on industrial in London and on the Midlands, but also focused on Manchester and Birmingham. And finally a plug for Cambridge where we’re building a building there.”
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