Aviva Investors, the global asset management business of Aviva, in partnership with Canada's Public Sector Pension Investment Board (PSP Investments), has agreed to invest up to £250 mln (€290 mln) in commercial property in Cambridge, UK.
The planned purchases include 50/60 Station Road, a 167,000 ft2 (15,500 m2) grade-A development completed in April 2019, fully let to technology and professional services businesses, and 30 Station Road, a 81,500 ft2 development scheme that is prelet to a global technology company on a 10-year lease. Construction commenced in September 2019, with completion scheduled for Q3 2021.
Aviva Investors will act as development manager and asset management partner, working alongside Brookgate as the developer.
In 2015, Aviva Investors and PSP Investments invested in a portfolio of commercial properties in central London, currently worth over £400 mln.
'We are excited to expand our successful partnership with PSP Investments in Cambridge, which is one of our key office cluster locations due to its deep talent pool and ability to attract leading global businesses,' said Daniel McHugh, managing director, real estate, Aviva Investors Real Assets.
'Station Road provides exposure to high-quality assets with a range of risk and return profiles, and we look forward to growing this strategy with PSP Investments.'
The firms highlighted the appeal of Cambridge 'as one of the UK’s most durable and attractive real estate locations due to its position as a world-class knowledge centre in technology, artificial intelligence, biotech and life sciences'.
Stéphane Jalbert, managing director, Europe and Asia Pacific, real estate investments, PSP Investments, said: 'Building on our existing partnership with Aviva, PSP is continuing its strategy of investing in key innovation markets. Cambridge is one of the UK’s leading knowledge clusters for artificial intelligence and life sciences, and we believe the regeneration of the Station Road area will outperform in the long term.'