Aviva InvestorsLe 06-06-2013
Aviva Investors today announces the funding of 129 residential properties in the South of England for GreenSquare Community Housing (GreenSquare). This follows the landmark £19 million transaction announced in February.
The transaction by the Aviva Investors REaLM Social Housing fund, part of the Aviva Investors Returns Enhancing and Liability Matching (REaLM) fund range, is for £13 million under a 48 year lease and leaseback arrangement.
GreenSquare retains management and resident facing responsibilities, whilst the fund receives income from rent payments that are increased in line with the Retail Price Index. Upon expiry in 48 years, full ownership of the properties reverts back to GreenSquare.
The Aviva Investors REaLM fund range was launched in July 2011 to invest in specialist real estate and infrastructure-related assets that provide secure, long-term, inflation linked income streams. It aims to help institutional investors, particularly UK pension funds, address the challenges they face in matching liabilities and capturing income in a low-yield environment. The Aviva Investors REaLM Social Housing fund seeks to invest in high quality UK residential property that is let on long term leases to registered providers and local authorities, providing a strong match for investors’ income requirements.
Today’s transaction brings the total now invested by the fund to over £100 million.
GreenSquare Group owns and manages 11,000 properties in Wiltshire, Oxfordshire and Gloucestershire, and is the parent company of GreenSquare Community Housing. GreenSquare was advised on the transaction’s structure by Savills.
Nigel Rule, fund manager for the Aviva Investors REaLM Social Housing fund commented:
“We are delighted to have worked with the team at Greensquare to complete this second leaseback of high quality portfolio properties. This is the latest transaction for our REaLM Social Housing Fund, and we are talking to Registered Providers across the UK on similar deals. We have an established due diligence and legal process, and funds available to create secure long term interests that can help to increase the supply and funding of affordable housing.”
Tim Jackson, Executive Director (Finance), GreenSquare Group commented:
“We believe that a balanced funding strategy is the key to effective treasury management and that an element of index linked finance will have an increasing role to play within this. Now that we have completed this funding transaction we will be exploring other opportunities with Aviva Investors – we very much see this as a long term relationship and look forward to Aviva Investors funding more new homes developed or acquired by GreenSquare in the future.”
Chaco Limited advised Aviva Investors on the deal structure and legal advice was provided by Trowers and Hamlins. GreenSquare’s legal advice was provided by Anthony Collins Solicitors.
For more information contact:
+44 (0)20 7809 8452
01249 466 020
Notes to Editors
The Aviva Investors REaLM fund
"REaLM" is a trademark of Aviva Investors Global Services Limited
The Aviva Investors REaLM Social Housing Fund is a Jersey regulated property unit trust regulated by the Jersey Financial Services Commission. Units in the unit trust are being offered to professional clients and qualified/ institutional investors by invitation only in accordance with restrictions imposed by the Jersey Financial Services Commission.
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 £274 billion at 31 December 2012.
> Aviva provides 34 million customers with insurance, savings and investment products.*
> Combines life insurance, general insurance and asset management businesses under one powerful brand.
* Based on Aviva plc Annual Report and Accounts 2012.
GreenSquare is a major provider of housing, regeneration, care and support and commercial services across Wiltshire, Oxfordshire and Gloucestershire. The Group's core business is building, managing and maintaining homes as well as supporting strong and stable communities. As well as managing and improving its current 11,000 homes, it is providing a range of new ones. These include homes for social and affordable rent, as well as homes for market rent and sale through its commercial subsidiary Oakus Estates and Haboakus, a joint venture with Kevin McCloud’s company Hab.
Aviva Investors Global Services Limited
No. 1 Poultry, London EC2R 8EJ
Phone +44 (0)20 7809 6000
Fax +44 (0)20 7489 7940
Aviva Investors Global Services Limited, registered in England No. 1151805. Registered Office: No. 1 Poultry, London EC2R 8EJ. Authorised and regulated in the UK by the Financial Conduct Authority and a member of the Investment Management Association.
Contact us at Aviva Investors Global Services Limited, No. 1 Poultry, London EC2R 8EJ. 13/0572/30092013
The information and opinions contained in this document are for use by the financial press and media only, and do not purport to be full or complete. No reliance may be placed for any purpose on the information or opinions contained in this document nor should they be seen as advice.The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.
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