Aviva Investors, the asset management arm of insurer Aviva, said today that it will form a new real assets business with £37bn in funds.
The new grouping will combine direct real estate, infrastructure, structured finance and private debt under a single leadership and operating structure.
It has also decided to sell its real estate multi-manager business and its interest in Encore+, a European commercial property fund, to LaSalle Investment Management.
The new group will be a direct operator in real assets; the businesses being sold do not fit in with this focus.
The price of the deal was not disclosed but it will lead to around £6bn of assets transferring to LaSalle, alongside Ed Casal, chief executive of real estate at Aviva Investors.
Mark Versey has been appointed as chief investment officer for the new group, leading a team of around 300 in the UK, France, Germany and Canada.
Versey said: “We have a long track record in sourcing and managing real assets for Aviva and external clients, and this new structure will allow us to be even more responsive in delivering the single-strategy and multi-asset solutions our clients need; whether that’s for capital growth, sustainable income, beating inflation or meeting liabilities.”