Aviva Investors buy major retail assets in Southampton and Hayes
Aviva Investors has purchased both Hedge End Retail Park in Southampton and an Asda superstore in Hayes.
These two deals are indicative of Aviva’s ambitions to strategically buy real estate assets that offer long-term growth in client portfolios.
Hedge End Retail Park spans over 100,000 sq ft and is split between four retail warehouse units. The retail park is home to brands including Currys, Lidl, and Pets At Home, and is situated in an established retail cluster towards the east of Southampton. Aviva plan to add electric vehicle charging points across the estate, this will add to the already built solar panels and single green roof at Hedge End.
The Asda superstore in Hayes covers 85,000 sq ft and is a short walk from the cross-rail station at Hayes and Harlington. At present it is currently let to Asda Stores Ltd until 2040 and is subject to a five-yearly review. Aviva hasn’t announced any renovation plans as of yet, this is possibly due to the building having already been awarded an EPC A rating off the back of the installation of 625 PV solar panels.
Head of Real Estate Investments at Aviva Investors James Stevens 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.”
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