Alecta has announced it is investing “just over” SEK1bn (€97m) in the 105 Victoria Street project in London, which it says will be the UK’s largest climate-neutral office property.

The investment is being made via a co-investment together with Welput - a real estate fund specialising in office properties in London managed by BentallGreenOak - and other co-investors, according to the SEK1.23trn Stockholm-based institutional investor, which said it was the largest owner of Welput.

Frans Heijbel, Alecta’s head of international real assets, said: “We expect a sharp increase in demand for green offices in London in the near future and we want to create conditions for companies to meet their climate goals through this type of investment.”

He said 105 Victoria Street would serve as a model for many other construction projects in the next few years through the new solutions developed to minimise emissions.

“The investment is innovative, creates good added value for the local area and will provide a good long-term return to our pension savers,” Heijbel said.

Last month, BentallGreenOak said it had recapitalised Welput’s ownership of the 105 Victoria Street project with the Public Sector Pension Investment Board (PSP Investments) investing for an undisclosed stake.

When completed, according to Sweden’s largest pension provider, 105 Victoria Street will not adversely affect the climate through greenhouse gas emissions, and uses innovative building techniques to contribute to minimal emissions.

During the construction phase, no fossil fuel will be used and the entire plant will be operated solely with renewable energy sources, according to Alecta.

Skanska has been commissioned to build the property, with construction starting in July 2022 and a goal of completion in 2026.

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