Aviva set to launch £250m fund to snap up commercial property bargains

Aviva set to launch £250m fund to snap up commercial property bargains


It has been reported in The Independent on Sunday newspaper that the asset management business, Aviva Investors, is looking to embark on a £250 million fund to buy distressed commercial property.

Apparently potential investors are already being contacted to take advantage of the “opportunities fund”, as it has been dubbed, before it officially launches.

Interestingly, the fund would not rely on bank borrowing, instead purchasing property by writing equity cheques. It is thought that fund will stay away from the riskier side of the commercial property market, such as speculative developments, and concentrate on investing only in existing property with secure tenants.

A spokeswoman for Aviva has said: “If launched, the fund would look at investing in


commercial real estate that is attractively priced relative to long-term history. We see this as an opportunity to take advantage of historically attractive pricing and forecasts for recovery providing potential for compelling returns.”

Aviva is not the only company looking to take advantage of the fall in commercial property prices; Standard Life Investments is set to launch a new £175 million


commercial property fund, modelled on its existing life and pensions fund, UK Commercial Property Trust.

The fund not only invests in commercial properties, but also commercial property-related equities, property investment companies and property collective investment schemes. It currently manages around 500 properties in


, with a market value of £8 billion.


Leave a comment