AVIVA INVESTORS’ LIME PROPERTY FUND ACQUIRES £30.06 MILLION OFFICE DEVELOPMENT IN BRISTOL FROM ABSTRACT SECURITIES LIMITED
Pre-let secured with Babcock Integrated Technology Ltd
(London) Aviva Investors has acquired the first phase of Abstract Securities’ redevelopment of Bristol Business Park for £30.06 million via the Lime Property Fund.
The property will be redeveloped into an 85,790 sq ft. modern office building, which has been pre-let in its entirety to Babcock Integrated Technology Ltd (“Babcock”), the UK’s leading engineering support services company, with a guarantee from Babcock International Plc.
The office building will be built to a BREEAM ‘Excellent’ specification and is scheduled for delivery in May 2019. The property will provide a prominent gateway office building on Bristol Business Park, Bristol’s premiere of out-of-town Business Park, which is in close proximity to the University of the West of England and the Ministry of Defence’s principal UK procurement centre at Abbey Wood.
Babcock has agreed a 15-year full-repairing lease at a commencing rent of approximately £1.6 million per annum, subject to five yearly rent reviews linked to RPI, collared and capped at two per cent and four per cent per annum.
Lime Property Fund is a secure income long lease property fund managed by Aviva Investors. The fund targets property investments let to strong tenants on leases with inflation-linked or fixed-rental uplifts and lease terms of 15 years plus.
Kris McPhail, Assistant Fund Manager, Aviva Investors, said:
“We are very pleased to be working with Abstract on this opportunity. Abstract has a long track record of delivering high-quality office accommodation for corporates. This transaction provides our institutional clients with an inflation-linked cashflow from a strong tenant and a property that is well located and strategically important to the tenant. These are exactly the type of investments we are actively targeting for the Lime Property Fund.”
Mark Glatman, Chief Executive of the Abstract Group, said:
“This transaction is great testimony to the commitment of all parties. Our Architects, Keppie Design, have done an excellent job on the planning and South Gloucestershire Council have been extremely supportive of this proposed development. This building in Bristol represents the third office building Abstract has undertaken for Babcock over the last 3 years and the efficiencies of procurement and consistency of design have enabled Babcock to benefit from an extremely low rent level for this new building. The process of forward funding was only initiated at the beginning of August and Aviva concluded their commitment within a month of agreeing Heads of Terms.”
Lambert Smith Hampton represented Abstract on the investment sale and DTRE represented Aviva Investors.
Addleshaw Goddard advised Aviva and Pinsent Masons acted for Abstract Securities.
For more information contact:
Giles Barrie, FTI Consulting
+44 (0)20 3727 1042
Aviva Investors Media Relations
+44 (0)20 7809 8971
Aviva Investors Media Relations
+44 (0)20 7809 8452
Aviva Investors Media Relations
+ 44 (0)20 7809 6252
+44 (0) 20 747 8272
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Issued by Aviva Investors Global Services Limited, registered in England No. 1151805. Registered Office: St Helen's, 1 Undershaft, London, EC3P 3DQ Authorised and regulated by the Financial Conduct Authority.
Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 15 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £351 billion as at 30 June 2017.
LIME PROPERTY FUND
The Lime Property Fund is a securelong income real estate fund with a net asset value of in excess of £2 billion. It was launched in 2004 and has been consistently and independently recognised by IPD as the most secure and least volatile fund of all funds open to investment in the IPD quarterly universe. The fund has capital to invest and is targeting property investments that provide inflation linked or fixed rental uplifts let to strong tenants on leases of 15 year plus, cross sector, UK wide.
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Abstract Securities Limited
Over the past 5 years Abstract has built or has under construction over 1 million sq.ft. of net lettable offices across the UK, together with a major office refurbishment of 250,000 sq.ft. making it one of the country’s largest regional developers. The Group undertakes development as a principal speculatively and for end users. Abstract also acts as a development manager under design and build arrangements and in joint venture partnerships.
Abstract has gained a strong reputation for delivering award winning schemes, including its new range of “uncompromising value” offices. These buildings deliver high specification, Grade A space with top environmental credentials (BREEAM Excellent and EPC ‘A’ rated) with a tight design and procurement process, offering occupiers the best value and cost per workstation of any modern offices in their local market.