Aviva acquires Southampton retail park in double deal

Aviva Investors has acquired two retail assets in the south of England with the purchase of Hedge End Retail Park in Southampton and an Asda superstore in Hayes, Hillingdon.

The asset management arm of Aviva said the deals represent its desire to act as a strategic buyer of real estate assets that can offer strong long-term rental growth in client portfolios.

Hedge End Retail Park spans over 100,000 sq ft split between four retail units and is home to a number of established retailers including Currys, Lidl, and Pets At Home. Adjacent to the M27 and M3 road networks, the scheme is supplemented by electric vehicle charging points, solar panels and a green roof.

The Hayes Asda store is a purpose-built store which totals more than 85,000 sq ft and is currently let to the supermarket on a 25-year term, set to expire in 2040. The store is a short walk from the Crossrail station at Hayes & Harlington, while the M4 and M25 networks are within a 10 minutes’ drive.

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.”