LONDON -(Dow Jones)- Aviva Investors, part of global insurance group Aviva PLC (AV.LN), said Monday its pooled property fund has returned to the market and is looking to snap up real estate investments.
In a statement on the latest acquisition by Aviva Investors Pensions Ltd., Robert Walton, Head of U.K. Institutional Funds, Real Estate, at Aviva Investors, said the latest purchase of a supermarket "marks the return of the Aviva Investors Pooled Property fund to the market".
Pooled property funds, or PPFs, which pool cash from investors for investments, were hit hard in 2008 as investors withdrew million of pounds from such funds as the property market slumped.
However in August the Association of Real Estate Funds reported the first net inflow into PPFs for a year.
In the second quarter of 2009, GBP320.4 million of new money went into PPFs with redemptions of GBP268 million, creating an overall net inflow of GBP52.4 million.
Earlier Monday it was announced that the Aviva Investors Pensions has acquired a 92,333 square foot food store from AIM-listed property company Terrace Hill Group PLC (THG.LN) for GBP27.67 million.
Construction on the store in County Durham, which has been let to the supermarket chain J Sainsbury PLC (SBRY.LN) on a 25-year lease, is expected to start next month.
Company Web site: www.avivainvestors.com ; www.terracehill.co.uk
-By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; rachael.gormley@dowjones.com