Aviva’s Norwich HQ up for sale

Aviva Insurance’s headquarters office in Norwich has been put up for sale with a price tag of £150m. If the sale achieves asking price, it will be the largest office deal the city has yet seen. It will represent a net initial yield of 7.6%. The 340,000 sq ft building is let to Aviva until 2029 for a fixed annual rent of £11.5m. The building is owned 50% each by two Israeli insurers, Harel and Menora. This is a typical ownership structure for Israeli insurers as they cannot take out debt against an asset if they own more than a half share. In July Ron Kowalski, global head of real estate at Harel, told EG it was difficult to justify not taking money off the table given the strong pricing on offer in some areas of Europe. “We are trying not to just be a market player, but invest with conviction, look at the fundamentals and be disciplined, so it is not easy and we need to keep spending just to keep at the level we are. We are finding in London, Paris and Manhattan we are receiving particularly interesting offers from Asia.” Savills and Eastdil Secured have been instructed to sell the building. To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette