Asset manager Aviva Investors and one of Canada's largest pension investment managers PSP Investments have acquired the ‘Hoxton Campus’, which consists of Aviva Digital Garage building and three other offices in Shoreditch.
The four office buildings included in the transaction together represent 55,974 sq ft (5,200 sq m) of lettable office space, creating a ‘campus’ of complementary assets. Floor space ranges from 1,105 sq ft to 5,276 sq ft, with two-thirds of the net internal area having 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.
This is the fifth investment joint investment between Aviva Investors and PSP Investments 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.”
Stéphane Jalbert, Managing Director, Real Estate Investments - Europe and Asia Pacific, PSP Investments, said: “Building on our existing partnership with Aviva, 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.”