Aviva in 130-home forward-funding deal

Aviva Investors has forward-funded 133 homes in Wixams, Bedfordshire, under its partnership with Packaged Living.   The latest investment, made by Aviva Investors Real Estate Active Long Term Asset Fund, means its UK single-family housing platform has now funded more than 1,500 homes with a total commitment of almost £575m. In keeping with other developments funded by Aviva Investors, the homes will incorporate a number of technologies to meet energy needs, including a combination of air source heat pumps, induction hobs, photovoltaic panels, battery storage and EV charging. Aviva Investors and Packaged Living have also stipulated that homes target an EPC A rating. A proportion of the homes will be eligible for Octopus Energy’s “zero bills” tariff, which enables customers living in homes featuring enhanced battery storage and solar panels provision to benefit from zero energy bills for 10 years. Situated within the wider 750-acre Wixams masterplan development, which is expected to comprise 4,500 homes, the 133 homes being funded by Aviva Investors are split between two to four bed homes, providing more than 133,000 sq ft of housing. When complete, the wider Wixams development will include schools, health centres, retail facilities, as well as sports facilities, parks, a new train station and community spaces. Wixams is situated two miles south of Bedford town centre. A new railway station is expected to open in 2026, providing direct journeys to London St Pancras in 50 minutes. Ben Sanderson, managing director of real estate at Aviva Investors, said: “We are pleased with the growth of our single-family housing platform, having set out with the initial expectation of funding 1,000 new homes. The living sector is a core part of our real estate investment strategy. Having already invested approximately £800m into UK living, we have an ambition to grow that commitment significantly over the next three to four years. “These investments show the role that private capital can play in supporting the creation of new homes across the country, that can help the UK get ready for the future by combining high energy efficiency with modern technology, thereby lowering costs for families living in them, while also delivering long-term investment outcomes.” Jonathon Ivory, chief investment officer at Packaged Living, said: “This is our second transaction with Barratt Redrow. Over 60% of our investments are now with strategic partners with whom we enjoy programmatic relationships. This ‘rinse and repeat’ approach to the single-family housing business model reduces the time and cost of each transaction, the savings of which are then reinvested in growing the portfolio and solving for the government’s housing agenda. It also doesn’t hurt that Universal Studios just announced it will be developing Europe’s largest theme park on our doorstep. This multi-billion-pound investment will create thousands of local jobs and provide our business plan with significant upside potential.”