Aviva Investors sees office demand surge, seeks more City deals

London isn’t slowing down. It’s evolving — quietly, strategically, and powerfully. This year, one trend is impossible to ignore: 🇺🇸 Ultra-wealthy Americans are flooding into London. Not because they have to. Not because it’s convenient. But because London remains a truly global hub for investment, culture, and legacy assets. Whether relocating, diversifying portfolios, or securing legacy holdings, they are arriving with serious capital and clear purpose. Across the market — agents, wealth managers, private bankers, and FX specialists alike — the picture is clear: This isn’t hype. It’s a wave of strategic investment quietly reshaping the market. While headlines focus on millionaires leaving, the reality is different: far more wealth is quietly coming in, targeting prime properties, off-market opportunities, and exceptional assets. Owning in London isn’t just buying property. It’s network, status, and opportunity rolled into one… and the ultra-wealthy are taking note. #PrimeCentralLondon #WealthManager #FamilyOffice #UHNW #USInvestors #USExpat

WHY THE BEST STRATEGIES DON’T FIT NEATLY IN A BOX The Spaces In Between After college I spent about 18 months in grad school studying architecture before moving to Hong Kong to start a career in finance. One thing that stayed with me from that brief design chapter was this: great architects understand how to shape the spaces between the spaces. In any design, the main spaces matter, but so do the courtyards, hallways, and transitions. Those in-between spaces are what make a building thoughtful, livable, and ultimately great. At Oakpoint Advisors Advisors, we recently shared a 12-month update, with impressive returns, from a structured credit manager we represent with a well-regarded allocator. His reply stopped me in my tracks: “I’ve passed this around within our private credit, absolute return, and public credit teams, not a good fit for any of them. Too volatile for private credit and absolute return, and too illiquid for public credit. However, strategies that don’t fit neatly within asset class verticals tend to be the best performers, but we can’t seem to think outside of our verticals.” That line made me think, maybe investing is like architecture. The real craft lies in designing the in-between spaces, the interactions between liquidity, structure, and risk. This strategy sits right there, between private credit’s illiquidity premium and public credit’s mark-to-market volatility, built to deliver private-credit-like returns with public-market liquidity. SO WHY DO WE STILL THINK IN BOXES? Because institutional frameworks have long been organized around traditional asset class silos that align with organizational structures, risk management systems, and industry benchmarks. As Colin Meadows put it in yesterday’s Pensions & Investments: “Investing is, frankly, paying attention where others aren’t.” And the results speak for themselves — emerging managers in alternative credit posted a 24.7% net IRR within NYC’s retirement systems, finding niches where “the trades are really not crowded.” Maybe the portfolios, and the investors, that occupy those in-between spaces will prove to be the most thoughtfully constructed. At Oakpoint, we focus on helping managers articulate those in-between spaces, through custom content and by connecting them to curated LP relationships that make thoughtful strategies resonate. #investing #alternatives #structuredcredit #capitalraising #architectureofinvesting

Candid words from Tom Sleigh this morning at ING Media - fresh from approving the City’s latest tower, CO-⁠RE London and Aviva Investors’s 130 Fenchurch Street, designed by Wilkinson Ayre. He said the City of London Corporation is the best planning department in the country, and could be making further improvements. Among these, the City is “looking at adding resource to its planning team” and at a “white glove” service whereby #realestate developers could pay more for fast-tracking applications.

Fintech start-up Neptune North has signed for an additional 5,000 sq ft of office space at Newcastle’s Bank House, taking the development to 100% let. Avison Young │ UK and Knight Frank are joint letting agents at Bank House. https://lnkd.in/enEngmMD

Australia’s third-largest super fund, Aware Super, is doubling down on Europe — with London offices at the center of its strategy. Since 2023, $2bn has flowed into European and UK real estate. Alek Misev, head of real estate, describes the region as “central” to their approach. With US markets uncertainty, Europe’s fragmented and diverse markets offer flexibility and opportunities that can’t be ignored. Aware Super Key Figures (End-June 2025) • A$203.9bn total AUM (+40% since June 2022) • 7.6% in listed and non-listed real estate • ~75% in non-listed properties, mostly in Australia • A$3.65bn in international non-listed real estate (~23% of total real estate exposure, up 36% since June 2022) • Domestic non-listed real estate up just 4% Through their £1bn Delancey & DARE JV, half of the capital has already been deployed. London offices remain a “standout” target, with limited supply and strong demand for quality space. Recent acquisitions include: 20 Manchester Square, Marylebone – £120m (~5% yield) | Invesco Ltd. 11–12 Hanover Square, Mayfair – £170m (3.86% NIY) | Aviva/ PSP Investments | Investissements PSP Finsbury Circus House, City – £140m | Union Investment Offices aren’t the only focus — logistics, student housing, self-storage, and aparthotels are all on the radar. They also acquired a stake in Amsterdam-based aparthotel operator The July aiming to scale it to A$1bn in three years. What’s exciting: smart, patient capital is moving into areas where opportunity is clear. Offices, once sidelined, are back in focus — but only the well-located, high-quality ones that promise resilience and strong returns.

We’re pleased to present our Q3 2025 Scottish Investment Market Review.   Transaction volumes for the quarter reached £440m, up 3% on Q3 2024 and 12% above the five-year average, reflecting some renewed confidence across key parts of the market.   This quarter’s spotlight is on city centre retail and leisure, where rebased rents, improving occupancy, and mixed-use development are helping to reinvigorate Scotland’s urban cores. Despite a challenging macro backdrop and rising employment costs, momentum is returning. After several years of rent adjustment, city centre values are showing meaningful growth, and prime yields in the 6–7% range are offering an increasingly attractive entry point for investors seeking long-term upside.   We’re also delighted to include guest insights from Nicola Barrett and Lisa Pollock at Lothian Pension Fund who share their perspectives on investor sentiment, rental growth expectations, and the growing role of mixed-use in creating vibrant city centres.   Simon Cusiter Colin Finlayson Chris Macfarlane Richard Mackie Chris Thornton Chrissie Clancy-Crofts   To view the full report please click the following link: https://lnkd.in/eYmCpXQG

Investment turnover in Q3 2025 totalled c. €700 million across 34 transactions, bringing year-to-date volumes to approx. €1.6 billion. The living sector accounted for the largest share of activity at 37%, closely followed by offices at 35%. Ireland remains a key focus for investors, with prime city-centre offices continuing to attract demand, although sentiment across the wider office market remains measured amid ongoing economic uncertainty. Residential and student accommodation showed strong activity, driven by undersupply, while investor appetite for retail assets is strengthening, albeit amid constrained availability. Overall, the outlook across most sectors is becoming more positive as confidence gradually rebuilds. QRE Real Estate Advisers Conor Whelan Deirdre Bonus David O'Malley

Super prime renters in London are getting younger, with tech and finance founders leading demand for modern homes in key neighbourhoods. US tenants remain strong, but with more coming from new regions. Read more:

Boston office leasing velocity hits highest level since 2019. Downtown Boston logged ~1.9M SF of Q3 leasing, the strongest quarter since 2019, highlighted by multiple 100K+ SF deals. Hasbro and KKR relocating to CBD, while BNY and Datadog retained sizable footprints. The pickup signals stabilizing demand even as concessions and flight-to-quality dynamics persist. Key Takeaways for CRE Investors: • New commitments: Renewals remain heavy, but net new commitments are re-emerging • Anticipate 2026–2027 expirations: Upcoming expirations can catalyze more relocations and rightsizing #CRE #BostonCRE #Office #Leasing #CapitalMarkets #FlightToQuality #RealEstateInvesting https://lnkd.in/eKkqDUqi

Great presentation this morning on the state of the #cre market. The commercial real estate market is evolving fast. Demand dynamics, capital flows, and borrower stress are all rebalancing — and that’s creating both challenges and opportunities. A few patterns I’m watching closely: • Flight to quality & modern amenities — Class A, retrofit, wellness-oriented properties are outperforming aging stock. • Industrial, logistics, and multifamily strength — These sectors remain the market’s backbone, benefiting from e-commerce tailwinds and housing demand. • Office re-use, conversions, or repurposing — Vacant or underused office space is increasingly being converted into housing or mixed use. • Debt maturities looming — A “debt cliff” is approaching, with many commercial loans set to mature in the next few years, putting pressure on stressed owners. • Capital cautious, selective — Investors remain disciplined, focusing on well-located, low-risk assets while pricing in financing risk. Takeaway: It’s a market of selectivity and resilience. The tailwinds favor those who can reposition, partner, or refinance smartly. Now is not the time for speculation — now is the time to lean into underwriting rigor, adaptive reuse, and rent-oriented assets. Curious to hear what sectors you’re bullish (or bearish) on in CRE for H2 2025. Let’s talk. #CRE #CommercialRealEstate #RealEstateTrends #AssetManagement #InvestmentStrategy