Aviva Investors and Public Sector Pension Investment Board (PSP Investments) have extended their partnership with an agreement to invest up to £250m in commercial property in eastern England.
The companies said the new venture will acquire a mix of ground-up and standing assets located in the CB1 Estate in Cambridge, a master-planned development covering 26 acres.
The acquired assets include 50/60 Station Road, a fully-let 167,000sqft development completed in April 2019 and 30 Station Road, a pre-let 81,500sqft scheme.
Construction commenced in September, with completion scheduled for the third quarter of 2021.
Aviva Investors will act as development manager and asset management partner, working alongside Brookgate as the developer.
Aviva Investors and Canadian pension investment manager PSP Investments in 2015 invested in a portfolio of commercial properties in central London, currently worth over £400m.
Daniel McHugh, managing director, real estate, Aviva Investors Real Assets, said: “Station Road provides exposure to high-quality assets with a range of risk and return profiles, and we look forward to growing this strategy with PSP Investments.”
Stéphane Jalbert, managing director, Europe and Asia Pacific, real estate investments, PSP Investments, said: “Building on our existing partnership with Aviva, PSP is continuing its strategy of investing in key innovation markets.
”Cambridge is one of the UK’s leading knowledge clusters for artificial intelligence and life sciences, and we believe the regeneration of the Station Road area will outperform in the long term.”
Melanie Collett, head of real estate asset management, Aviva Investors Real Assets, said: “We continue to see high demand for space from many global firms, with cutting-edge technology and business services firms among the occupiers in our properties as we create leading locations that cater to businesses, communities and individuals.”