Aviva Investors has agreed to provide a green loan of more than £37m to AEW for the redevelopment of an office building in Central London.
The scheme, which is located at 95 New Cavendish Street in Fitzrovia, will deliver more than 22,000 sq ft of office space when it is completed by development manager LBS Properties. AEW is targeting an EPC A and BREEAM Excellent rating for the development.
The investment has been made by Aviva Investor’s multi sector private debt long term asset fund, which is designed for DC pension funds looking to diversify returns from traditional asset classes such as public equity and fixed income, as well as wider private markets allocations and single private debt strategies.
Sima Kotecha, head of high yield strategies, real estate debt, at Aviva Investors, said: “We are very pleased to extend our existing relationship with AEW and to provide financing towards what is an ambitious redevelopment scheme in the heart of Central London. This is a terrific example of how we are helping the commercial real estate sector get ready for the future, by funding the retrofitting and future proofing of existing building stock.
“It also shows how, through our private debt LTAF, we are able to support a broader range of activities by our borrower clients, whilst also providing our investors with the benefit of greater risk and return diversification within their private debt portfolios.”
