The Public Sector Pension Investment Board (PSP Investments) has bought into UK’s largest all-electric net-zero office scheme alongside existing owner Welput.
BentallGreenOak, the manager of specialist central London office fund Welput, said it has recapitalised the fund’s ownership of the 105 Victoria Street project with PSP Investments investing for an undisclosed stake.
The 500,000sqft office building project has also secured a £400m (€465.6m) development finance facility to help fund the project.
Allianz Real Estate is providing £200m of the development finance facility, BentallGreenOak said. Details of the other lenders involved in the financing were undisclosed.
BentallGreenOak said it has appointed Skanska as the main contractor to deliver the scheme expected to start in July, with completion expected in the second quarter of 2026.
Ker Gilchrist, a managing partner at BentallGreenOak, said PSP Investments’ commitment, alongside existing Welput investors’ in 105 Victoria Street, demonstrates an ongoing commitment to London and absolute confidence in its future as a global hub.
“This project is surpassing the existing and emerging standards for green development, with a comprehensive whole-life carbon approach. The building will achieve net-zero in construction, then operation, and after just six years of its lifespan will be net beneficial to the environment.
“To deliver this ultra-sustainable building and attract the next generation of aspirational tenants, we have secured a significant financial deal with partners that stand shoulder to shoulder with us on our commitment to ESG and who bring a strong track record in projects of this nature,” Gilchrist said.
Stéphane Jalbert, managing director and head of Asia-Pacific and Europe, real estate investments at PSP Investments, said: “PSP Investments is pleased to establish this new partnership with BentallGreenOak and Welput on what will be UK’s largest 100% electric net-zero office building.
“This fossil-fuel-free development aligns with PSP’s strategy to invest in sustainable buildings that have a positive impact on the community and better position our London portfolio for the future.”
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