Aviva Investors has made a £100 million bet on the post-Covid office market, revealing plans to work with Sellar, the developer behind the Shard, to create a workspace campus next to London Bridge station.
The global asset management business of insurance giant Aviva will be investing £100 million, on land and development, on Bermondsey Street.
It has bought two sites, comprising existing commercial buildings and a former warehouse, from Sellar, the developer that worked on the nearby Shard skyscraper.
The buyer said Sellar will act as co-developer on the project, which will lead to the creation of a “high-quality mixed-use office campus and retail facilities, designed with the evolving needs of its occupiers front of mind”.
No details of the size of the scheme were provided today, but Aviva said there will be a focus on creating flexible spaces and spacious environments.
Commitment to invest comes despite some market concerns about how future office demand will look, after last year scores of people worked from home for Covid-19 lockdowns.
Some bosses may look to embrace remote working full-time, although property investors think there will still be high demand for the best office space.
Daniel McHugh, managing director, real estate, at Aviva Investors, said: “The Southbank is one of London’s most exciting office submarkets, attracting a wide variety of occupiers and characterised by low vacancy rates.”
James Sellar, chief executive of Sellar, said: “We’re delighted to have completed this transaction with Aviva Investors, which secures an exciting future for Bermondsey Yards. 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.”
Aviva Investors was represented by property agent Savills, and CBRE advised Sellar.
