Pension Insurance Corporation (PIC) has agreed the £267.6m forward purchase of 2 Ruskin Square in Croydon from Schroders Capital UK Real Estate Fund (SCREF).
The 344,940 sq ft Grade A office building, which sits next to East Croydon train station, has been let to the Government Property Agency (GPA).
The building will be ready for occupancy in August next year and it will house approximately 3,000 civil servants who currently work for the Home Office in different locations around Croydon.
Two Ruskin Square has been developed by existing funder Schroders Capital, development manager Stanhope and contractor Lendlease. The development is targeting BREEAM Outstanding and it is anticipated it will operate on a net zero carbon basis.
In August last year, PIC agreed the £105m forward funding of the GPA’s circa 130,000 sq ft First Street hub in Manchester.
James Agar, head of long income at PIC, said: “Government let commercial property assets are an important, on-going area of specific focus for PIC, and we are pleased to make this long-term commitment to supporting the greening and modernisation of the UK government’s estate. Two Ruskin Square is a best-in-class development and joins the First Street hub in Manchester as part of expanding partnership with the GPA.”
Clive Anderson, GPA’s director of capital projects, added: “The 2 Ruskin Square, Croydon, development is part of the Government Hubs Programme which will provide a smaller, better, and greener estate which supports the government’s ambition to reach net zero carbon emissions by 2050.”
Rob Cosslett, fund manager at Schroders Capital, said: “The sale of 2 Ruskin Square is in line with SCREF’s strategy of divesting out of assets upon completion of the business plan, having successfully pre-let the office space and with development of the scheme now largely complete. We have worked closely with our development partner Stanhope to successfully deliver this best-in-class, highly sustainable building on time and under budget, despite the challenges posed by the Covid-19 pandemic.
