Aviva Investors has committed to over £100 million into London’s Southbank, acquiring two adjacent commercial development sites on Bermondsey Street, which it will co-develop alongside Sellar.
As part of the agreement, Aviva Investors acquired the site from Sellar, who will act as co-developer with the two businesses working in partnership on the development of the project.
The project will create a high-quality mixed-use office campus and retail facilities with flexible spaces and spacious environments. The campus-style collection of buildings will be enhanced by boutique amenities, with the aim of creating an attractive set of surroundings to the complex and the immediate community.
Daniel McHugh, Managing Director, Real Estate, at Aviva Investors, commented: “We are very pleased to acquire such a highly sought-after site and look forward to developing it alongside Sellar. Our objective is to create an office campus that not only provides best-in-class facilities for its customers but which is also environmentally sustainable, as we continue to decarbonise our portfolio and support the transition to a low-carbon economy. The Southbank is one of London’s most exciting office submarkets, attracting a wide variety of occupiers and characterised by low vacancy rates and increasing tenant demand, which reflects its strong location and proximity to major transport hubs. We believe this should ultimately offer a good degree of resilience in the portfolio over the long-term.”
James Sellar, CEO at Sellar, added: “We’re delighted to have completed this transaction with Aviva Investors, which secures an exciting future for Bermondsey Yards. The site allows for a unique campus-style offering that will embrace the new ways of working that have been forged in the face of the pandemic, and that continue to represent the future of the industry. The character and amenities of Bermondsey Street and the surrounding areas are very appealing to companies, their staff, and their visitors with the added benefit of being adjacent to a major transport hub. We look forward to working alongside Aviva Investors to develop this visionary project.”
Savills represented Aviva Investors, with CBRE acting as an agent for Sellar.