Aviva acquires Southampton retail park
The retail park houses a number of household names, including Currys, Lidl, and Pets At Home
Aviva Investors, the global asset manager of Aviva plc, has revealed it has acquired the Hedge End Retail Park in Southampton, alongside the separate purchase of an Asda superstore in Hayes, Middlesex.
It said the two deals continue Aviva Investors’ desire to act as a strategic buyer of real estate assets that can offer strong long-term rental growth in client portfolios.
Spanning more than 100,000 sq ft and split between four retail warehouse units on an eight-acre site, Hedge End Retail Park is situated in an “established” retail cluster to the east of Southampton.
The retail park houses a number of household names, including Currys, Lidl, and Pets At Home.
Aviva Investors added it plans to improve the Park’s sustainability credentials through the addition of electric vehicle (EV) charging points across the estate, adding to existing measures which include solar panels on two units and a green roof installed on a further building.
Meanwhile, the Asda superstore acquired by Aviva Investors is located in Hayes, Middlesex, and is a purpose-built facility totalling more than 85,000 sq ft.
It is currently let to Asda Stores Ltd on a 25-year term which expires in 2040 and is subject to a five-yearly review.
James Stevens, head of Real Estate Investments at Aviva Investors, said: “These deals highlight our position as a strategic buyer, and to act with agility in response to repricing in the market. Non-discretionary retail such as food and groceries is a strong defensive asset class against the macroeconomic backdrop. We believe both of these investments can offer strong growth performance, particularly given the current discount in pricing.”
