Investec Real Estate has contributed to the largest outer-London development financing deal of 2023 so far.
The company has provided private equity real estate firm LCN Capital Partners with £43m of a total £122m loan for the development of a new office scheme in Kingston upon Thames.
The 283,000 sq ft office block has been prelet in its entirety to Unilever. The FTSE 100 multinational consumer goods company has taken the space as its new global headquarters.
Alongside Investec’s £43m commitment, £79m of debt has been arranged with Allied Irish Bank (GB) and Bahrain-headquartered Bank ABC for the deal.
The Unilever Campus, which is being developed by Cube Real Estate, will offer office space across two interlinking glass-fronted buildings. Other features include 354 car parking spaces, 30% of which will be EV charging enabled.
The development, which will create around 2,000 jobs, is targeting a BREEAM Excellent certification and to be net-zero carbon in operation. It is expected to be delivered in late 2024 to early 2025.
Investec Real Estate portfolio manager Hollie Sleigh said: “As businesses of all shapes and sizes accelerate their return to the office, we are seeing an increasing bifurcation in the London office market.
“Grade-A, highly sustainable assets such as the Unilever Campus, which enable employers to provide the optimal working environment for employees in order to attract talent and foster a strong sense of identity with creativity and collaboration at its core, remain in high demand.
“The outlook for non-ESG-compliant offices, particularly in secondary and tertiary locations, is a lot bleaker. We will continue to back clients and projects on the right side of this widening divide.”
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