Aviva Investors has provided a £144m (€163 mln) loan facility to private UK property company Aquila Finance.
The fixed rate 7-year facility is secured against a multi-sector portfolio of 12 assets located in Chelmsford and Maldon, principally the Bond Street shopping centre in Chelmsford.
The shopping centre comprises a prime retail and leisure scheme of 27,870 m2 located in the heart of Chelmsford and anchored by a 11,148 m2 John Lewis store. Aquila has developed the scheme over a number of years, with the final main phase opening in September 2016.
As part of the transaction, PGIM Real Estate, the real estate investment business of US-based Prudential Financial provided a £16 mln mezzanine facility.
Gregor Bamert, head of Real Estate Finance, Aviva Investors, said: 'Aquila has a deep understanding of the Chelmsford market and has delivered a fantastic ground-up development which enhances the city's retail offer. This transaction demonstrates Aviva Investors'strong appetite across all sectors and we are delighted to commence a long-term relationship with a company that has created value throughout the development cycle.'
This transaction follows the completion of another successful partnership between PGIM Real Estate and Aquila. In November 2014, PGIM Real Estate provided a whole loan / senior bridge along with development finance to assist in the development of the Bond Street shopping centre.
