Feldberg Capital has completed the first deal for its new ReForm Fund, with the purchase of 8 Bloomsbury Street, WC1, from Aviva Investors.
The fund has paid £30m for the circa 34,000 sq ft block, reflecting a 7.34% yield.
The ReForm Fund, which has a fundraising target of £300m to give it a firepower of £500m, is targeting “brown” offices that it can transition to more sustainable workplaces. It is targeting offices in central London growth areas such as Soho, Fitzrovia, Marylebone and Bloomsbury.
Feldberg said that 8 Bloomsbury Street, which was refurbished by architects Buckley Gray Yeoman in 2017, would receive further retrofit to provide tenants with a bespoke, fully-fitted, best-in-class green workplace across its 33,448 sq ft.
Robert Allen-Mersh, director at Feldberg Capital, said: “We are seeing a once-in-a-generation opportunity to invest in some of central London’s best commercial real estate assets at very attractive values. This transaction demonstrates our ability to source opportunities of the highest quality in a tough market.”
David Turner, managing partner at Feldberg Capital, added: “The London office market provides one of the most attractive risk-adjusted investment opportunities in Europe. Rarely does such value exist in a global gateway city, but the window may close quickly as interest rates fall.”
Knight Frank advised Feldberg Capital; Savills acted for Aviva Investors.
To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews
