Global asset manager Aviva Investors has agreed a £200 mln (€237 mln) facility with Primary Health Properties (PHP), a REIT specialising in modern primary healthcare properties.
It is the latest investment by Aviva Investors as part of its sustainability-linked financing programme, which commits to originating £1 bn in climate transition real estate debt by 2025.
The 15-year facility is secured against 61 NHS Primary Care centres and refinances approximately £177 mln in existing debt, also with Aviva Investors. Similarly to other climate transition loans made by Aviva Investors, it features margin incentives conditional on a prescribed set of sustainability-linked KPIs being achieved by PHP. PHP will benefit from margin reductions should it meet these goals, which will be reviewed annually over the full lifetime of the loan.
The financing has been made by Aviva Investors on behalf of Aviva’s UK Life business.
'Aviva’s annuity business pays lifetime pensions to a significant number of individuals in the UK,' said Marcus Mollan, director, Annuity Asset Origination at Aviva. 'To align with this long-term commitment to our annuity customers and pension scheme clients, we seek sustainable investments that are aligned with our path to net zero carbon.'
