Aviva Investors and the Public Sector Pension Investment Board (PSP Investments) have acquired of the ‘Hoxton Campus’, which consists of four offices located around Hoxton Square in the Shoreditch area of London, N1. Hoxton Square sits at the east end of London’s Tech City, the most established tech cluster in Europe, and a London sub-market that Aviva Investors believes is likely to experience strong future demand for office space given its scale and ability to attract and nurture talent in the era of knowledge capitalism.
The four office buildings included in the transaction together represent 55,974ft² (5,200m²) of lettable office space, creating a ‘campus’ of complementary assets. Floor space ranges from 1,105ft² to 5,276ft², with two-thirds of the net internal area has been subject to complete redevelopment behind the retained facades, and the remaining accommodation significantly refurbished. Three of the acquired assets sit directly on Hoxton Square with the fourth located on Old Street. The deal represents the fifth investment that Aviva Investors and PSP Investments have made together since 2015.
Daniel McHugh, CIO, Real Assets, at Aviva Investors, said: “Our partnership with PSP Investments continues to go from strength to strength and we are delighted to expand the relationship further into an exciting and dynamic subset of the London market. London continues to represent the richest market of workers employed in knowledge-intensive sectors, with the tech cluster being of significant scale and importance in the global market.”
Stephane Jalbert, Managing Director, Real Estate Investments - Europe and Asia Pacific, PSP Investments, said: “Building on our existing partnership with Aviva Investors, PSP Investments is continuing its strategy of investing in dynamic markets while ensuring best-in-class sustainability standards. Hoxton is one of the most creative hubs in London, as well as an important centre of technology which we believe will outperform in the long term.”
George Fraser-Harding, Fund Manager at Aviva Investors, said: “Despite the challenging environment faced over the last 12 months, we expect London to be a stand-out performer relative to other global knowledge hubs, given its talent pool, connectivity, corporate clusters and scalability. This particular sub-market should fair especially well with a dynamic occupier base beginning to return to offices. These buildings are well-located and offer the quality and character of space that we’re seeing significant demand from tenants for, positioning them well to deliver long-term growth and, ultimately, positive performance within our portfolio.”