Aviva acquires industrial site in Essex

Aviva Investors has acquired an industrial estate in Braintree in the UK county of Essex for £17.9 mln (€25.3 mln) on behalf of the Aviva Investors Property Trust.

The asset was purchased from Standard Life Investments in a deal representing a net initial yield of just over 6.25%.

Comprising 16,600 m2, the Skyline 120 estate is let to six tenants and offers ‘excellent’ active management opportunities, Aviva said.

Aviva Investors recently revised upwards its total annual return for UK commercial property by 1%, forecasting a total return of 9% annually between 2015 and 2019. The revision reflects strengthening domestic economic activity and a more subdued outlook for interest rates.