Aviva Investors is merging several existing businesses into a new £37bn 'real assets' division and plans to grow the unit's headcount by 10% over the next 18 months as part of "ambitious" expansion plans.

The merger, which is the culmination of a four-year plan to overhaul Aviva's alternative assets division, will also see the firm sell £6bn's worth of property funds to LaSalle Investment Management, with which it has an existing joint venture.