Bath Accommodation Acquired by Aviva

Green Park House, previously owned by Bath Spa University, has been acquired by Aviva Investors on behalf of the Lime Property Fund.

This is in addition to the existing portfolio that the fund acquired in Bath in 2007.

The six-storey accommodation, located on Green Park Road, consists of 461-rooms of four different types.

Green Park House has an EPC-B rating, with rooftop-based solar PV panelling, rainwater harvesting and no direct reliance on fossil fuels. This aligns with Aviva Investors' 2040 commitment to achieving net zero across the entirety of its Real Assets portfolio.

The Fund's existing portfolio is let to the University of Bath, and now they have entered into a new 27-year lease agreement with the University, including annual rent reviews collared and capped at 0 per cent and 6 per cent respectively for this scheme.

Aviva Investors Fund Manager, Kris McPhail, stated that: "Long income has experienced relatively low volatility despite market stresses as a result of the pandemic, offering a gilt-like cashflows with the added benefit of being linked to inflation. With inflationary pressure continuing to rise, the case for the asset class is a compelling one, particularly if coupled with strong counterparty credit.

"As a well-established, top-ten UK university, we believe the University of Bath offers exactly this. The tailored and bespoke deal on Green Park House will provide affordable accommodation for students, and at a much lower rate than would be possible through direct letting.

"We believe this deal has good social and environmental credentials, but will also deliver strong value and performance for our clients, who value inflation-linked cashflows that can offer a healthy margin over gilts."