Aviva Investors offloads Asia Pac property business

Aviva Investors has sold its Asia Pacific real estate fund range to JP Morgan Asset Management.

Aviva Investors chief executive Euan Munro says the sale is part of the wider group’s streamlining strategy.

Aviva Investors retains the real estate multi-manager operation, which runs £5.6bn across the UK, Europe and the Americas.

It also keeps hold of £2.1 billion of Asian fixed income assets.

Munro says: “The transaction is in line with Aviva Investors’ strategy of simplifying its business and moving towards an integrated operating model and organisational structure.

“We selected JP Morgan to help ensure stability and continuity for the investors in our Asia Pacific real estate strategies.”

JP Morgan AM says the 50-strong team spread between China, Australia, Singapore and India will bolster the existing 400 staff working for JPM’s global real assets team. The firm plans to open another office in Japan early next year.

JPM global real assets head Joe Azelby says growth in Asian funds under management and capability is top of the agenda for the firm.

“With this acquisition, we have expanded our real estate investment capabilities, across the full risk spectrum from core to opportunistic strategies, to help our clients increase their allocations to dynamic growth markets in Asia Pacific,” he says.

JPM head of Asia Pacific real estate David Chen adds: “Asia Pacific presents an enormous investment opportunity for our clients.”

“We have accelerated the expansion of our geographic footprint into key real estate markets and added high quality personnel on the ground with extensive market expertise and deep local relationships.” 

Aviva recently announced a £5.6bn deal to buy Friends Life