Aviva Investors, the global asset management business of Aviva, has acquired a central London aparthotel scheme for its Lime property fund for £150 mln (€168 mln).
The property, a 22 storey tower located within Zone 1 on Commercial Road, Aldgate, comprises some 190 apartments plus facilities including a gym, café, private restaurant, bar and co-working members club with a garden and terrace.
The fund has also confirmed an agreement with the London Borough of Barking and Dagenham to lease the asset once the fit-out process has been completed, with the freehold transferring to the Borough at expiry of the lease for a nominal value.
The asset will be operated under The Gate brand and is expected to be delivered at the start of 2020.
Mark Wells, director, real estate origination, Aviva Investors, said: 'The transaction is aligned to the Lime property fund’s strategy of acquiring robust assets that benefit from the presence of a high-quality tenant, which we believe will provide investors with consistent, inflation-linked performance over the long term.'
The Lime property fund is a long-income real estate fund with a net asset value of £2.3 bn, launched in 2004.
