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Feldberg Capital has completed the first transaction for its new ReForm Fund with the purchase of 8 Bloomsbury Street in London WC1 from an undisclosed institutional investor.
The ReForm Fund aims to transition “brown” offices to green workplaces and is targeting what the company described as “amenity-rich central London growth locations with excellent connectivity,” such as Soho, Fitzrovia, Marylebone and Bloomsbury.
The fund has received significant backing from a UK institutional investor, achieving first close in October. It has a fundraising target of £300M, which will provide total investment of around £500M, including leverage.
Architect Buckley Gray Yeoman refurbished 8 Bloomsbury Street in 2017, and the building will receive a further retrofit to provide tenants with green workspace across circa 34K SF.
“We are seeing a once-in-a-generation opportunity to invest in some of central London’s best commercial real estate assets at very attractive values,” Feldberg Capital Director Robert Allen-Mersh said in a statement. “This transaction demonstrates our ability to source opportunities of the highest quality in a tough market. 8 Bloomsbury Street is a high-quality building in an excellent location but requires significant ESG improvement works to create a best-in-class green workplace asset.”
The ReForm Fund is one of the first UK funds to link a proportion of the manager’s performance fees to predetermined ESG targets, according to Feldberg Capital. The company acquired London real estate investment management business Brunswick Property Partners and has a track record of London-focused investment ventures, including the £500M London neighbourhood workplace strategy Akoya, in partnership with a global sovereign wealth fund.
Akoya focuses on sustainability, occupier wellbeing and local community. It comprises 750K SF and 160 tenants and is aiming to be net-zero for Scope 1, 2 and 3 emissions by 2040.
Knight Frank advised Feldberg Capital, and Savills advised the undisclosed institutional investor.
Feldberg Capital is an owner-managed real estate investment manager with offices in Frankfurt, Berlin and London. The largest shareholder of the company is Esas Holding, a global multi-asset manager and wealth management service provider.
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