Feldberg Capital has bought an office in Fitzrovia for £29M, the third purchase for the fund that aims to decarbonise office buildings and increase their value.

Feldberg’s Cora fund acquired the 24K SF Ariel House from an unnamed institutional investor.

The purchase takes the fund’s acquisitions past £130M. In December 2023, it paid £29M for 8 Bloomsbury Street, a 33K SF office also in Fitzrovia. In April 2024, it paid £75M for the 74K SF 21-25 Bedford Street in Covent Garden.

The fund is looking to buy energy-inefficient “brown” office buildings in central London districts like Soho, Fitzrovia, Marylebone and Bloomsbury and retrofit them. It has raised £100M of equity for the strategy, launched in late 2023, and it is targeting £300M.

Feldberg said that would give the fund £500M of firepower, including debt. An unnamed UK institutional investor provided the cornerstone investment for the fund.

In terms of sustainability and impact, Feldberg said it has linked a proportion of managers' performance fees to predetermined environmental, social and corporate governance targets to create alignment between investors’ targets and financial returns.

It has also set science-based targets for each asset acquired by the fund to ensure they will be as environmentally friendly as possible in operation.

Each Cora asset will support a local charity partnership.

Feldberg was founded by Rodney Bysh, former Edmond de Rothschild REIM head of business development and Cording CEO, and former JLL Germany CEO Andreas Quint. In July 2023, it took over fellow property fund manager Brunswick Property Partners.