BNP Paribas Real Estate Investment Management (REIM) has bought a prime office building in Central London from Delancey Real Estate for £42.5 mln (€49.3 mln).
The deal marks the first UK acquisition for BNP Paribas REIM’s European Impact Property Fund (EIPF).
The building in question, 25 Victoria Street, offers 4,984 m2 of office, retail, and leisure space across nine floors. It features multi-tenancy with six occupants and flexible floorplates ranging from 229 m2 to 623 m2.
Built in 1996 by Land Securities, the Grade A property enjoys a strategic location at a corner junction, offering prominent visibility on both Victoria Street and Abbey Orchard Street.
Swati Srivastava, head of Institutional sales & IR (UK, Ireland, Netherlands, Nordics and International Clients), commented: ‘Launched in 2020, the EIPF is one of the first property funds aligned with the Paris Agreement, intending to pioneer the fight against climate change. The fund’s strategy targets on average a 74% reduction of greenhouse gas emissions across its portfolio within 10 years. To achieve this objective, it implements a dynamic ‘best-in-progress’ approach to deliver appropriate capex interventions to drive sustainability gains. This will act to improve the environmental performance of EIPF’s portfolio.’
Ben Mort, investment manager at BNP Paribas REIM, added: ‘We have been looking at opportunities within the London market throughout 2023 to secure the fund’s first entry into the UK. We have committed to 25 Victoria Street as a result of its attractive tenants and base build quality. It has strong asset management potential to further enhance its value and deliver excellent returns for investors. The fund’s business plan will target enhancing the building’s environmental status by cutting its greenhouse gas emissions as well as curbing overall energy consumption. The Victoria market is forecast to see strong prime rental growth over the next years.’
Strong connectivity is a major advantage, with three train stations within walking distance, serving both London Underground and National Rail lines.
BNP Paribas REIM was represented by Michael Elliott and Norton Rose Fulbright. Delancey Real Estate, acting for client funds, was advised by CBRE and Hogan Lovells.
25 Victoria Street marks the tenth acquisition for the EIPF and aligns with BNP Paribas REIM’s focus on sustainable and impactful investments.
