Aviva Investors, Allianz Real Estate form £500m London office development JV

Aviva Investors, Allianz Real Estate form £500m London office development JV

Aviva Investors has formed a joint venture partnership with Allianz Real Estate for its ongoing development project of new mixed-use retail and office buildings at 1 Liverpool Street and 101 Moorgate in the City of London.

The partnership will see Aviva Investors and Allianz Real Estate develop the two buildings, with a gross development value (GDV) of approximately £500 million, which together sit at the heart of the Crossrail development site in the City, bookending the eastern and western entrances of the new Elizabeth line station at Liverpool Street station, following a development agreement originally entered into by Aviva Investors with Transport for London (TfL) in 2019.

1 Liverpool Street sits opposite the eastern entrance of the new Elizabeth line at Liverpool Street station and above the new Crossrail infrastructure at Liverpool Street station, which will complete the west end of Liverpool Street. Once complete, it will provide 176,000 sq ft of leasable office and retail space, spread over the ground and upper ten floors. 

101 Moorgate occupies a prominent site in the City, close to the junction with London Wall and opposite the entrance to Finsbury Circus. It will deliver over 73,000 sq ft of office and retail space over its ground and six upper floors. 

In-line with Aviva Investors’ commitment to reaching net zero across the entirety of its c.£47 billion Real Assets platform by 2040 and Allianz Real Estate’s target of reducing carbon emissions across its portfolio by 25% by 2025 whilst being carbon net-zero by 2050, the two sites will be developed with environmental and sustainable credentials front-and-centre of their design.

Both buildings will target a BRREAM ‘Outstanding’ rating, the highest certification that can be achieved when assessing the sustainability performance of a building through BREEAM’s third-party certification scheme, whilst also meeting Carbon Risk Real Estate Monitor’s (CRREM) decarbonisation pathway requirements and being compliant with EU Taxonomy. 

In August last year, Aviva Investors partnered with PSP Investments, one of Canada’s largest pension investment managers, to acquire a portfolio of offices located around Hoxton Square in the Shoreditch area of London, which was the fifth investment made together by the two firms since 2015. 

James Stevens, Head of Real Estate Investment at Aviva Investors, said:  “The scale of development we are undertaking at Liverpool Street and Moorgate signals our continued commitment to the city and its long-term prospects. We are really pleased to be partnering with Allianz Real Estate, a firm which shares both our investment philosophy and focus on sustainability. This joint investment will deliver an exceptional example of our development strategy in action. We have set stringent sustainability targets, aiming to lower ongoing energy needs through use of efficient materials and specific performance targets. This will make 1 Liverpool Street and 101 Moorgate buildings of the highest quality for their occupants and a further facilitate a move towards a lower-carbon future.” 

Kari Pitkin, Head of Business Development Europe at Allianz Real Estate, said: “London is one of the world’s most dynamic cities and one of the most important office markets. This development will result in two exceptional office buildings in London. We strategically picked the micro locations in the City of London with direct access to the Crossrail transport service as we continue to build up our London office portfolio.”