Feldberg Capital has a attracted cornerstone investment from a UK institutional investor for a fund designed to retrofit central London offices and turn them into sustainable workplaces.
Feldberg, which recently acquired Brunswick Property Partners (BPP) in the UK, said it was seeking £300m (€347m) in capital from investors, which would enable it to invest £500m in a “brown-to-green workplace” strategy.
The ReForm fund has had its initial close, receiving “significant backing from a cornerstone UK institutional investor”. The amount of capital raised in the first close was not disclosed.
Felberg said ReForm would target “amenity-rich” offices in central London locations “with excellent connectivity and strong growth characteristics”, such as Soho, Fitzrovia and Marylebone.
David Turner, head of investment at Feldberg, said: “With the tightening of [minimum energy-efficiency standard] regulations and a significant proportion of existing stock suffering from poor energy performance and increasing obsolescence, coupled with increasing occupier demand for high-quality workplace, we are seeing a significant opportunity to acquire discounted real estate and apply our unique skillset to create best-in-class green workplaces.”
Will Amies, head of business development at Feldberg, said: “In a challenging market environment, securing a cornerstone investor reflects the relevance and appeal of our latest venture and the confidence of investors in our abilities and track record. With a constrained future development pipeline, energy efficiency regulations looming and occupier requirements evolving, this fund is perfectly positioned to take advantage of this opportunity.
“We’re now in active discussions to raise further funds from local government pension schemes, UK multi-managers, corporate pension funds and other professional investors, as we look to create a war chest to target a space rich in opportunity.”
In July, Frankfurt-based Feldberg acquired BPP, paving the way to expand its presence across Western Europe. At the time, Feldberg said the acquisition was the first step in a plan to establish a company focused on “sustainable real estate developments and investments in Western Europe”. The initial target markets are Germany, the UK and Benelux countries.
The plan is to focus on investments across workspace, life sciences, logistics and residential, with a “particular focus on positive environmental impact and the surrounding community”, Feldberg said.
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