Aviva Investors and the Public Sector Pension Investment Board (PSP Investments) have agreed to invest up to €289.8m (£250m) in commercial property in Cambridge. Aviva Investors and PSP Investments in 2015 invested in a portfolio of commercial properties in central London, currently worth over €463.7m (£400m).
The new investment will acquire a mix of ground-up and standing assets located in the CB1 Estate in Cambridge, a master-planned development covering 26 acres and including:
- 50/60 Station Road, a 167,000ft² grade-A development completed in April 2019, fully let to market-leading technology and professional services businesses.
- 30 Station Road, a 81,500ft² scheme that is pre-let to a leading global technology company on a 10-year FRI 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.
Daniel McHugh, Managing Director, Real Estate, Aviva Investors Real Assets, said: “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. Station Road provides exposure to high-quality assets with a range of risk and returns profiles, and we look forward to growing this strategy with PSP Investments.”
Stephane 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.”
Melanie Collett, Head of Real Estate Asset Management, Aviva Investors Real Assets, said: “The Cambridge commercial property market benefits from strong cluster effects, with businesses supported by incubator and innovation spaces, strong knowledge sharing in local networks and a wealth of employable graduates. We continue to see high demand for space from many global firms, with cutting-edge technology and business services firms among the occupiers in our properties as we create leading locations that cater to businesses, communities and individuals.”
