Aviva Investors has acquired an office park redevelopment in the UK city of Bristol for £30 mln (€34 mln) from UK developer Abstract Securities.
'This transaction provides our institutional clients with an inflation-linked cashflow from a strong tenant and a property that is well located and strategically important to the tenant,' said Kris McPhail, assistant fund manager at Aviva Investors. 'These are exactly the type of investments we are actively targeting for the Lime Property Fund.'
The first phase of Abstract Securities’ redevelopment of Bristol Business Park will see the property transformed into a 85,790 ft2 (8,000 m2) modern office building, which has been pre-let in its entirety to engineering firm Babcock Integrated Technology. A rent of around £1.6 mln (€1.8 mln) per annum has been agreed.
The office building will be built to a BREEAM Excellent specification and is scheduled for delivery in May 2019.
Lime Property Fund is a secure income long lease property fund managed by Aviva Investors. The fund targets property investments let to strong tenants on leases with inflation-linked or fixed-rental uplifts and lease terms of 15 years plus.