Aviva commercial property fund makes first purchase in two years

Aviva's commercial property trust has completed its first purchase in over two years, buying a retail and office block in Chester for £20 million.

The trust said that its decision came on the back of a strengthening commercial property market, which has seen strong pricing movements across all sectors since September.

According to the firm, the property's yield is, on average, 6.5 to seven per cent.

Phillip Nell, head of UK real estates and manager of the Aviva Investors Property, trust told the Financial Times that over the past two years the Aviva Investors Property trust, like the rest of the property sector, has seen significant levels of capital outflow.

"We have managed to avoid suspending dealing on the fund, and have also managed to carve a direct property portfolio which we believe will stand the fund in good stead for long-term sustained performance," he added.

Last week, it was reported that Cushman & Wakefield has sealed a major commercial property management agreement with Aviva Investors Property Trust.

Under the terms of the deal, the property firm will manage Aviva's UK portfolio.