Joint Partnership With PSP Investment (2024)

4 November 2015

Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), with its client Aviva Life & Pensions UK, has formed a 50/50 joint venture partnership with the Public Sector Pension Investment Board (“PSPInvestments”), one of Canada's largest pension investment managers, to invest in Central London real estate.

Aviva Life & Pensions UK has agreed to sell 50% of its stake in a portfolio of central London real estate to PSP. The portfolio of 14 prime assets is located across London comprising existing properties or those with planning consent, representing over one million square feet of space.

Aviva Investors will act as asset and development manager on the joint venture, which will focus on office and retail properties where Aviva Investors can use its specialist skills to realise value for the partners through active asset management and development. The initial portfolio comprises a mix of both stabilised income-generating assets and development opportunities in both the City and West End of London.

Ed Casal, Global CEO, Real Estate, Aviva Investors commented:

“We are delighted to enter into this strategic partnership with PSP Investments, an experienced and sophisticated long-term global investor.Aviva Investors has a strong pedigree in investing in prime Central London real estate assets and a background in delivering high profile developments.We are well positioned to implement a number of attractive development opportunities within the portfolio and look forward to working with PSP Investments and our Aviva client as we bring these to fruition.

“Conditions remain strong in the Central London office sector as robust occupier demand continues to put upward pressure on rents. Similarly, Central London shops continue to benefit from low vacancy, booming tourist numbers and extremely strong demand from international retailers.”

Neil Cunningham, Senior Vice President, Global Head of Real Estate Investments, PSP Investments commented:

“We are pleased to partner with Aviva, a seasoned real estate investor with a deep understanding of the London market.

“This investment is consistent with PSP Investments’ real estate strategy to invest in prime and dynamic city centres that we expect will outperform in the future, and is complementary to PSP Investments’ existing portfolio in London.”

Aviva Investors has over £31bn of real estate assets as at 30 June 2015. Aviva Investors’ Global Real Estate team offers comprehensive market coverage, with specialist teams covering occupational and investment markets and dedicated in-house real estate strategy and research teams.

Notes to Editors

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 press release is provided on the basis that Aviva Investors Global Services Limited is not causing the communication of a financial promotion under exemption of the Financial Promotion Order, as Aviva Investors Global Services Limited has no control over the way in which an article based on this press release is prepared and published by the financial press and media.

Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”) as at 3 November 2015. 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.

The Joint Venture (“JV”) is a closed ended Collective Investment Scheme between Aviva Investors, its client Aviva Life and Pensions and Public Sector Pension Investment Board. The JV is structured as a series of English limited partnerships. Aviva Investors Global Services Limited (“AIGSL”) will be appointed as the investment advisor and operator of the main joint venture limited partnership and asset and development manager of each of the underlying, asset holding limited partnerships.

Where funds are invested in real estate/infrastructure, investors may not be able to switch or cash in an investment when they want because real estate/infrastructure may not always be readily saleable. If this is the case we may defer a request to switch or cash in units. Investors should also bear in mind that the valuation of real estate is generally a matter of valuers’ opinion rather than fact.

PSP INVESTMENTS

The Public Sector Pension Investment Board (PSPInvestments) is one of Canada's largest pension investment managers with $112.0billion of net assets under management as of March31,2015. Its skilled and dedicated team of professionals manages a diversified global portfolio, including public equities, private equity, bonds and other fixed-Income securities, real estate, infrastructure and natural resources. PSPInvestments is a Crown Corporation established to manage employer and employee net contributions since April1,2000, to the pension funds of the federal Public Service, the Canadian Forces and the Royal Canadian Mounted Police, and since March1,2007, the Reserve Force. PSPInvestments' head office is located in Ottawa, Ontario, and its principal business office is in Montréal, Québec. For more information about PSPInvestments’ fiscal year 2015 results, please visit www.investpsp.ca .

Aviva Investors

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 £263 billion as at 30 June 2015.

Aviva plc

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* Before the deduction of Aviva and Friends Life overlapping customers.