Four finalists selected for Aviva’s £400m Project Moon

Aviva has selected a four-strong shortlist to acquire its circa £400m Project Moon UK direct secondary property portfolio.

Screen shot 2013-11-22 at 00.19.26Apollo Global Management, Blackstone, Cerberus Capital Management and Kennedy Wilson have progressed through to the second and final round, CoStar News can reveal. 

Project Moon is a 135-strong granular portfolio of enforced legacy property loans, originated through Aviva Commercial Finance, and are all now in receivership or administration.

For the eventual winner, Project Moon is a classic ‘wholesale-to-retail’ investment play, where assets will be piecemeal sold on at a premium to purchase price, buttressed by convenient and efficient lease re-gearing and asset management options.

Within Project Moon are the following four assets:

  • the 71,069 sq ft Bishop’s Stortford Leisure Complex in Hertfordshire, valued at £6.75m, with an annual rent of £696.2m and a weighted average unexpired lease term (WAULT) of 11.5 years;
  • the 49,784 sq ft Wilkinson, Fleetway House, Fleet Street, Swindon, which has a 5.75 year unexpired lease which currently pays £335,000 per annum. Current value is quoted at £2.435m;
  • a Swansea “drive-through” Burger King which is on the market at a standalone £1m asking price;
  • a second Wilkinson in Dewsbury, West Yorkshire, with an 8.5 year unexpired lease term and is valued at £1.78m.

This is the first property portfolio de-leveraging effort by Aviva and the impression given to the original wider bidding group was that more would likely follow.

The process has not been without hitches to date, however, with incomplete information provided across the entire portfolio, which has disrupted bidders’ first round net present value estimates.

As a result, the first round pricing offered between the four finalists is understood to vary considerably.

All parties declined to comment.

About CoStar News

Finance Editor, CoStar News
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