Aviva Investors and PGIM refinance Aquila Finance real estate portfolio

Aviva Investors has provided a £144m (€161m) fixed-rate, seven-year loan to UK private property company Aquila Finance.

The UK insurer-owned investment manager said the loan facility is secured against 12 assets located in Chelmsford and Maldon in the Southeast of England. The principal asset is the Bond Street Shopping Centre in Chelmsford, which Aquila developed.

As part of the transaction, PGIM Real Estate has provided a £16m mezzanine facility, Aviva Investors said.

In November 2014, PGIM Real Estate, the real estate investment arm of US-based Prudential Financial, provided a whole loan and development finance to help fund the development of the Bond Street Shopping Centre.

Gregor Bamert, Aviva Investors’ head of real estate finance, said: “Aquila has a deep understanding of the Chelmsford market and has delivered a fantastic ground-up development which enhances the city’s retail offer.

“This transaction demonstrates Aviva Investors’ strong appetite across all sectors and we are delighted to commence a long-term relationship with a company that has created value throughout the development cycle.”