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Aviva planning major extension of City offices as PSP joint venture continues sales

Major joint venture with Canada's PSP has been focused on disposals recently.
New Broad Street House. (CoStar)
New Broad Street House. (CoStar)
CoStar News
August 4, 2025 | 8:09 AM

Aviva Investors, the global asset management business of Aviva, has completed the purchase of New Broad Street House in the City of London, acquiring the remaining stake in the building via its Real Estate Active Long Term Asset Fund.

The building had been owned in the 50:50 joint venture with Canadian pension giant PSP Investments. The price paid has not been disclosed but is thought to be around £55 million. PSP in recent years has focused on selling its stakes in the London offices in the joint venture.

New Broad Street House adds to Aviva's existing portfolio of assets across the City of London which includes One Liverpool Street, 101 Moorgate and 130 Fenchurch Street.

The building is on the corner of the historic cobbled New Broad Street and Old Broad Street and in the New Broad Street Conservation area. The building provides 102,000 square feet of offices, as well as four shops at street level, opposite Liverpool Street station and entrance points to several London Underground lines.

Originally constructed in 1907 as three separate properties, it underwent renovation and remodelling in the 1980s which saw the historic facades retained and the demolition of the internal floors and walls, with the structure spread across five upper floors, as well as a lower ground and basement level.

Aviva Investors said it has undertaken an initial assessment into the building’s development potential, which could provide up to an additional 100,000 square feet of offices, subject to planning permission. This follows Aviva Investors having recently submitted detailed plans for its proposed redevelopment of 130 Fenchurch Street, which would see the creation of a 31-storey tower.

Ed Atterwill, head of central London at Aviva Investors, said in a statement: "We are pleased to grow our investment into the City of London, adding to a number of prominent schemes at Liverpool Street, Moorgate and Fenchurch Street. The Square Mile is one of the strongest performing locations in the capital, while its office market remains a key conviction sector for us. We look forward to working with the City of London in unlocking future development prospects that help it get ready for the future by supporting its strategic priorities, creating potential coinvestment opportunities with capital allocators, and presenting those plans in due course."

Aviva Investors sold a 50% stake in a 14-strong portfolio of prime central London property and development portfolio to PSP Investments, one of Canada's largest pension investment managers, for around £500 million as the seed portfolio in a new joint venture between the two liability-driven direct real estate investors in 2015.

The initial portfolio comprised a mix of both stabilised income-generating assets and development opportunities in both the City and West End of London, with one of the buildings being New Broad Street House.

The portfolio represented more than one million square feet of space including three major development schemes. They were:

  • the 350,000-square-foot Fountain House development scheme at 130 Fenchurch Street, EC3,
  • the redevelopment of Irongate House at 22-30 Dukes Place, EC3; and
  • 11-12 Hanover Square, W1, which was developed as a mixed retail and office scheme.

In addition, the portfolio included income-producing assets such as Nuffield House at 41-46 Piccadilly, W1, an office block opposite Fortnum & Mason.

In 2021 Aviva Investors and PSP Investments completed a fifth investment together, with Aviva transferring its Hoxton Campus into the joint venture. In 2019, Aviva Investors and PSP Investments announced plans to invest up to £250 million in commercial property across the CB1 Estate of Cambridge.

In 2020 Aviva Investors and PSP Investments extended their relationship into continental Europe with the acquisition of Galleri K, a mixed-use retail, leisure and office asset located in the centre of Copenhagen’s retail district.

PSP has focused on selling from the portfolio in recent times and has essentially sold the London offices either to Aviva or jointly.

Aviva took on the 130 Fenchurch Street development while PSP took on Chancery House, which it sold in 2019 to Fora for £114.5 million.

In May, the duo completed the sale of 11-12 Hanover Square for around £170 million to Delancey and Aware Super, Australia's third-largest superannuation fund. Knight Frank and Newmark advised Aviva and PSP on that sale.

Confirming that sale, Aviva and PSP said it marked the conclusion of a "highly successful joint investment strategy and business plan".

In 2023 Liu Chong Hing Investment, a Hong Kong-listed group, bought Barratt House, 341-349 Oxford Street, from Aviva Investors and PSP Investments for £44 million or a 5.6% net initial yield.

In 2022 the City of London bought the long leasehold interest in Irongate House, 22-30 Dukes Place, London, EC3A from the joint venture for £16 million.

Aviva Investors said in a statement: "The partnership has consistently recycled capital by adding and disposing of assets that deliver risk adjusted financial returns in London, Cambridge and Copenhagen."

Newmark advised PSP on the sale of New Broad Street House. Knight Frank advised Aviva.

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