Canada’s Public Sector Pension Investment Board (PSP Investments) has confirmed its investments in a prime London office portfolio.
Aviva Life & Pensions UK is selling 50% of its portfolio of central London real estate to PSP, the Canadian public sector pension-fund manager. The portfolio is worth around £1bn (€1.41bn), according to media reports.
Aviva Investors said it will continue to manage the portfolio of 14 prime assets, with the joint venture focusing on the office and retail sectors.
Neil Cunningham, global head of real estate at PSP Investments, said: “This investment is consistent with [our] real estate strategy to invest in prime and dynamic city centres we expect will outperform in the future, and is complementary to [our] existing portfolio in London.”
The portfolio includes income-generating assets and development opportunities in London’s City and West End districts.
Ed Casal, global chief executive for real estate at Aviva Investors, said: “Conditions remain strong in the central London office sector as robust occupier demand continues to put upward pressure on rents.
“Similarly, central London shops continue to benefit from low vacancy, booming tourist numbers and extremely strong demand from international retailers.”
PSP Investments has previously invested in London’s office sector with AXA Real Estate.