Aviva Investors, the global asset management business of Aviva, has inked a sale and leasback deal with Gravesham Borough Council and developer Reef Group for St George’s Centre in Gravesend.
Financial details were not disclosed.
The income strip deal sees Aviva Investors acquire the asset, alongside an agreement with Gravesend Borough Council to pay rental income of £1.15 mln (€1.28 mln) per year over 50 years, subject to inflation.
Refurbishment plans for the site include a new cinema and restaurants, as well as overall improvements to the shopping and leisure experience.
'This transaction is another strong example of a win-win situation for both a local authority wanting to progress a key development and our pension fund clients, who are looking for long-term income,' said Mark Wells, director, Aviva Investors.
'Having forged the partnership with Gravesham Borough Council and Reef Group, we are confident the development plans for the St Georges Centre and the wider area will contribute to the regeneration of Gravesend. We are actively investing in such properties for our REaLM Commercial Assets Fund, and have a strong pipeline that will support our efforts to grow the platform.'
The transaction was secured on behalf of Aviva Investors’ REaLM (returns enhancing and liability matching) commercial assets fund, which targets secure, long-term and inflation linked income streams for pension funds.
