Aviva Investors has provided two senior debt facilities to the alternative investment arm of the Pictet Group, the global wealth manager, along with its joint venture partners Marchmont Investment Management, and Pinnacle Investments, totalling £9.7million and £17.0 million respectively.
The financings, both of which are secured over five-year terms, have been made on behalf of external client mandates managed by Aviva Investors.
The first facility is a fixed-rate financing secured against a portfolio of last-mile industrial assets across London and the South East of England with a weighted average unexpired lease term (WAULT) of approximately 2.25 years.
The second facility is secured against two Private Rented Sector (PRS) blocks acquired by Pictet in summer 2020, located in East London, totalling 70 units and providing one- and two- bed apartments at market rental rates. Financed on a floating rate basis, the facility is linked to SONIA and is the first such facility completed by Aviva Investors using the LIBOR replacement.
“We are really pleased to have started a lending relationship with Pictet and its partners, particularly in two sectors where we continue to see good prospects for resilience and growth. Pictet has demonstrated its excellent asset management credentials over the last two centuries and, in its joint venture partners, has sector experts that actively manage their assets. As a global wealth manager, we believe it is closely-aligned to the capital available from our client mandates and we look forward to growing the relationship further. These facilities show investment opportunities remain, particularly in sectors that can match strong capital with good operating partners,” said Gregor Bamert, Head of Real Estate Debt at Aviva Investors.
“We’re delighted to get these financings in place for two key UK investment strategies in the residential PRS and last-mile logistics sectors, for our pan European value-add fund. Aviva’s support and flexibility during these exceptional times has had a positive impact on our target returns, and we hope to continue the relationship as we expand these portfolios,” added Edward Jackson, Senior Investment Professional at Pictet Alternative Advisors.