The sale of Aviva Investors Australia, which had approximately A$5.5bn of assets under management as at 31 July 2011, is expected to complete in the third quarter of this year. Neither party would disclose the financial details of the deal.
Aviva investors chief executive Alain Dromer said: “The sale is consistent with our strategic focus on growing cross border sales and our business in Asia from our Singapore regional hub. It is also a good outcome for Aviva Investors Australia.
“While our Australian equity business is highly regarded, it is a relatively small player in a competitive market, and it would be challenging for us to achieve a leading position without substantial additional investment. We determined the business would be likely to offer greater value to participants with a broader Australian distribution footprint.”
In addition to the sale, Aviva Investors said it has relocated its regional Asia Pacific headquarters to Singapore and that Craig Bingham, its Asia Pacific chief executive, is to leave the company. He is to be replaced by Erich Gerth, chief executive of global business development who will relocate to Singapore.
Aviva Investors said it will continue to have an institutional sales and direct real estate presence in the Australian market.
Dromer added: “Our business in the Asia Pacific region has grown substantially and with the sale of Aviva Investors Australia agreed, we will focus on further building our Asian business out of Singapore.”
