Feldberg Capital has acquired 21-25 Bedford Street, London WC2, for approximately £75 million (€88 million), for its ReForm fund.
ReForm is a brown-to-green workplace fund, investing in energy inefficient ‘brown’ offices and using Feldberg’s ESG capabilities to retrofit and reposition these assets into modern green workplaces. It was launched in October 2023.
The fund targets assets in Central London’s growth locations underpinned by excellent connectivity and amenity, such as Covent Garden, Soho, Fitzrovia and Bloomsbury.
21-25 Bedford Street is a highly prominent building less than 100 metres from Covent Garden Piazza with world-class restaurants, bars, retail and theatres.
The building is close to both Covent Garden and Leicester Square underground stations, while Tottenham Court Road station (on the new Elizabeth Line) is only 750 metres away.
In line with the ReForm fund strategy, ESG upgrade measures will include the removal of gas boilers, installation or air-source and water-source heat pumps, and installation of on-site solar panels.
Furthermore, Feldberg’s focus on social sustainability will see the creation of an asset-specific charity partnership chosen based on the results of a needs assessment of the local Covent Garden area.
ReForm is one of the first UK funds to link a proportion of the manager’s performance fees to pre-determined ESG targets, creating alignment between investors’ ESG ambitions and financial returns.
The first fund acquisition, of 8 Bloomsbury Street, is currently undergoing a retrofit to provide a fully-fitted, green workplace.
ReForm received significant backing from a cornerstone UK institutional investor in October 2023, followed by a second close in December 2023. The fund has a fundraising target of £300 million, which will provide firepower of around £500 million including leverage.
Source: propertyeu.info on the 2nd of April