Aviva fully invests Fund II

The UK insurer has invested all of its £140m UK commercial real estate fund in 16 months.

Aviva Investors, the investment management arm of UK insurer Aviva, has fully invested its latest UK commercial real estate fund.

The fund, Aviva Investors UK Real Estate Recovery II Fund, deployed the £140 million (€186 million; $211 million) on prime, long lease-length assets in the UK using only equity.

The fund was launched in September 2013 with a target return of between 8 and 10 percent per year net of fees.

“The fund has been involved in 22 individual transactions, including a number off-market. Over 50 percent is invested in Greater London and the South East, and is therefore positioned well to benefit from rental growth,” said Anna Rule, fund manager at Aviva Investors, in a statement.

“We called the market correctly, raised the equity and have been successful in investing rapidly into the market.”

The London-based firm called time on its fundraising effort for the fund last March – short of its £250 million target – in order to put the capital to work as quickly as possible.

At the time Aviva said it was “mindful of the speed” the real estate market was moving and decided that a delayed final close would not be in the interests of investors, despite interest in the fund coming from additional investors.