Aviva Investors has announced a second close of its UK Commercial Real Estate Senior Debt fund.
Aviva Investors has announced a second close of its UK Commercial Real Estate Senior Debt fund.
The second close brought in £187 mln (€221 mln) of equity from five investors, including four UK defined benefit schemes.
Aviva said the fund now stands at £287 mln and is on track to meet its target of £500 mln by its final close in January 2015.
The fund was launched in July 2013 and is managed by James Tarry. It targets a yield of between 2.5% and 3.5% above equivalent maturity UK government bonds and invests in fixed-rate first-ranking mortgages advanced at up to 65% loan to value, with 5- to 10-year maturities. These mortgages are secured against core and core-plus UK commercial real estate.
Fund manager Tarry commented: 'We continue to see a flow of attractive lending opportunities in the senior debt market. We have already deployed over £53 mln, representing more than 50% of our first close capital in two high-quality deals which meet the fund’s investment criteria. Our pipeline of lending business across the UK remains strong.'
Aviva Investors’ real estate team comprises 60 investment professionals managing over £23 bn in assets under management.
