Feldberg Capital has acquired 21-25 Bedford Street in London for circa £75m for its ‘brown-to-green’ ReForm fund.
The office building, which is located close to Covent Garden Piazza, will now undergo an ESG retrofit involving the installation of air-source and water-source heat pumps and on-site solar panels.
Feldberg launched the ReForm impact fund in October 2023 and has set a fundraising target of £300m, which will provide firepower of around £500m, including leverage.
The company is targeting energy inefficient ‘brown’ offices in Central London growth locations such as Covent Garden, Soho, Fitzrovia and Bloomsbury, which benefit from strong connectivity and amenity provision.
Robert Allen-Mersh, director at Feldberg, said: “This acquisition continues to support our thesis that we are seeing a once-in-a-cycle opportunity to invest in Central London’s best commercial real estate assets at very attractive values. 21-25 Bedford Street is a very high-quality mixed-use building in the heart of Covent Garden with exciting asset management upside.”
Will Amies, head of business development at Feldberg, added: “21-25 Bedford Street marks ReForm’s second transaction following the impact fund’s acquisition of 8 Bloomsbury Street late last year. We achieved first close on ReForm in October 2023 and subsequently quickly reached second close in December 2023. Our ability to fundraise in the current climate is testament to the belief investors have in our ability to deploy capital quickly into good buildings at very attractive pricing.”
