Feldberg Capital has achieved a second close on its impact fund, ReForm, which targets office decarbonisation and social objectives.
A further £50 mln (€58 mln) has been committed to the fund at second close, bringing the total fundraise to £100 mln since it launched in October 2023.
The ReForm fund is a brown-to-green workplace fund investing in energy inefficient ‘brown’ offices and using Feldberg’s ESG framework to retrofit and reposition these assets into modern green workplaces.
Its investment strategy includes ambitious ESG targets and innovative features in place that will ensure ReForm has a meaningful positive impact for all stakeholders.
Will Amies, head of business development at Feldberg, commented: 'The successful second close of ReForm underscores our and our partners’ dedication to driving positive change in London’s office sector by decarbonising buildings while delivering social benefit and positive community impact.
'With backing from major investors, we are well-positioned to leverage our expertise in brown-to-green asset management and deliver impactful ESG-led results at a time when market dislocation is creating a once-in-a-generation opportunity to invest in some of central London’s best commercial real estate assets at attractive values.'
According to the firm, the fund is one of the first UK funds to link a proportion of the manager’s performance fees to pre-determined ESG targets, creating significant alignment between investors’ ESG ambitions and financial returns.
Individual asset-specific science based targets will be set for reducing carbon emissions ensuring they will be as environmentally friendly as possible in operation.
Each ReForm asset will have a local charity partnership that will be supported, developing initiatives such as renewable energy, spaces for and support with charity events, or funding for their causes.
The ReForm fund focuses on workplace assets in amenity-rich central London zone 1 locations with excellent connectivity and strong growth characteristics, such as Soho, Fitzrovia and Marylebone.
The fund is targeting a total equity raise of £300 mln, which will provide firepower of £500 mln including leverage.
David Turner, head of investment at Feldberg, added: 'London is busy and thriving which is positive for offices, but employers realise that in order to attract their workers back long term and to attract the best talent, they need to provide high-quality space in the best locations that supports employee wellbeing.
'According to Knight Frank there will be a 16% increase in UK full-time undergraduates in London between now and 2030, and when these younger socially conscious individuals enter the world of work they will want to be in ESG-led workplaces with thriving amenities on the doorstep. This is the kind of workspace ReForm is setting out to create while having a genuine positive impact on communities and the environment.'
Feldberg Capital is an owner-managed real estate investment manager with offices in Frankfurt am Main, Berlin and – following the acquisition of Brunswick Property Partners in the UK in 2023 - London.
