Aviva Investors has invested over £100 million in two adjacent sites on Bermondsey Street in London’s Southbank to co-develop a new office campus project, Bermondsey Yards, with Sellar.
As part of the agreement, Aviva Investors acquired the site from Sellar, who will act as co-developer with the two businesses working in partnership on development of the project. Under the scheme, Aviva Investors and Sellar will undertake redevelopment and selective renovation of existing buildings on the site.
‘Bermondsey Yards’ comprises of two principal plots that include existing commercial buildings on Bermondsey Street and a former leather warehouse on an adjacent plot, which sits next to the popular Vinegar Yards open-air market.
The development site is located directly adjacent to London Bridge Station, with the dynamic and cultural areas of London’s Southbank and Borough Market five minutes’ walk and the City of London approximately 15 minutes away.
The project will lead to the creation of high-quality mixed-use office campus and retail facilities, designed with the evolving needs of its occupiers front of mind. This will include putting the well-being at the forefront of the design, with a focus on creating flexible spaces and spacious environments. The campus-style collection of buildings will be further enhanced by boutique amenities, with the aim of creating an attractive set of surroundings to the complex and the immediate community.
“We are very pleased to acquire such a highly sought-after site and look forward to developing it alongside Sellar. Our objective is to create an office campus that not only provides best-in-class facilities for its customers, but which is also environmentally sustainable, as we continue to decarbonise our portfolio and support the transition to a low-carbon economy. The Southbank is one of London’s most exciting office submarkets, attracting a wide variety of occupiers and characterised by low vacancy rates and increasing tenant demand, which reflects its strong location and proximity to major transport hubs. We believe this should ultimately offer a good degree of resilience in the portfolio over the long-term,” said Daniel McHugh, Managing Director, Real Estate, at Aviva Investors.
“We’re delighted to have completed this transaction with Aviva Investors, which secures an exciting future for Bermondsey Yards. The site allows for a unique campus-style offering that will embrace the new ways of working that have been forged in the face of the pandemic, and that continue to represent the future of the industry. The character and amenities of Bermondsey Street and the surrounding areas are very appealing to companies, their staff, and their visitors with the added benefit of being adjacent to a major transport hub. We look forward to working alongside Aviva Investors to develop this visionary project,” said James Sellar, CEO at Sellar.
Aviva Investors was represented by Savills, with CBRE acting as agent for Sellar.