Aviva Investors and PSP Investments offload London office and retail asset

Global asset manager Aviva Investors and Canadian pension fund PSP Investments have complete the sale of a freehold office and retail property in London’s West End.

11-12 Hanover Street

A partnership between UK property group Delancey and Australian fund Aware Super purchased the 11-12 Hanover Square property for a price estimated at £165-170 mln (€196-202 mln).
The sale successfully concluded a joint venture between Aviva and PSP, which saw Aviva develop the prime West End location in 2017. 
The nearly 4,645 m2 property was leased to high-profile tenants like New Balance, Summit Partners, Pollen Street Capital, and New Balance.
This sought-after London location offered a rare freehold opportunity with a weighted average unexpired lease term of 4.3 years. 
Ed Atterwill, head of Central London at Aviva Investors, said: “The sale of 11-12 Hanover Square secures a strong investment outcome and is testament to the continued demand for prime, modern, central London office space. The yield achieved reflects both the quality of the redevelopment undertaken to futureproof the building, as well as our ongoing asset management throughout our ownership. Its sale will enable us to redeploy capital into key conviction sectors, including prime London offices and our growing development pipeline, through to UK single-family housing and urban warehousing.”
Stéphane Jalbert, managing director, Real Estate Investments, Head of Europe and Asia Pacific, at PSP Investments, added: “This transaction highlights the strong investor demand for high-quality assets in strategic locations in London given the structural supply and demand imbalance, cutting through a challenging market environment. It also reenforces PSP Investments’ continuing commitment to create value by investing in the office sector, supporting our mission and mandate.”