Feldberg bags Covent Garden office for £500m green fund
Feldberg Capital has made its second purchase for its brown-to-green workplace fund ReForm with the acquisition of 21-25 Bedford Street, WC2, for £75m.
The fund targets energy-inefficient “brown” offices in central London which it can retrofit and reposition into modern green workplaces.
As part of the repositioning of the 74,000 sq ft 21-25 Bedford Street, gas boilers will be removed and air-source and water-source heat pumps will be installed, along with solar panels. Feldberg will also create an asset-specific charity partnership chosen based on the results of a needs assessment of the local Covent Garden area.
Feldberg Capital has made its second purchase for its brown-to-green workplace fund ReForm with the acquisition of 21-25 Bedford Street, WC2, for £75m.
The fund targets energy-inefficient “brown” offices in central London which it can retrofit and reposition into modern green workplaces.
As part of the repositioning of the 74,000 sq ft 21-25 Bedford Street, gas boilers will be removed and air-source and water-source heat pumps will be installed, along with solar panels. Feldberg will also create 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 predetermined ESG targets, in a bid to align investors’ ESG ambitions and financial returns.
The fund, which launched in October 2023, made its first acquisition in December 2023 when it bought 8 Bloomsbury Street, WC1. The 33,448 sq ft building is located close to Tottenham Court Road station and is undergoing a retrofit to provide bespoke, fully-fitted, green workspace.
ReForm received significant backing from a UK institutional investor in October 2023, followed by a second close in December 2023. It has a fundraising target of £300m to give it firepower of £500m, including leverage.
Robert Allen-Mersh, director at Feldberg, said: “This acquisition continues to support our thesis that we are seeing a once-in-a-cycle opportunity to invest in central London’s best commercial real estate assets at very attractive values. 21-25 Bedford Street is a very high-quality mixed-use building in the heart of Covent Garden with exciting asset management upside.”
Photo from Feldberg Capital
