Feldberg Capital has completed the first transaction for its new £500m central London green workplace fund with the purchase of 8 Bloomsbury Street in the West End.
Feldberg bought the office building from an undisclosed institutional investor for an undisclosed price for its ReForm Fund.
The fund, which will transition brown office space to green workspace, is targeting assets in Central London growth locations with excellent connectivity, such as Soho, Fitzrovia, Marylebone and Bloomsbury.
The fund, which achieved its first close in October, has a fundraising target of £300m, which will provide firepower of circa £500m including leverage.
The 33,448 sq ft 8 Bloomsbury Street was refurbished by architects Buckley Gray Yeoman in 2017 and will be further retrofitted by Feldberg.
Robert Allen-Mersh, director at Feldberg Capital, said: “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. 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 a short walk from Tottenham Court Road Station, but requires significant ESG improvement works to create a best-in-class green workplace asset. This is an excellent first acquisition for the fund as we look to assemble a unique Central London portfolio with an attractive pipeline.”
David Turner, managing partner at Feldberg Capital, added: “The London office market provides one of the most attractive risk adjusted investment opportunities in Europe. Rarely does such value exist in a global gateway city, but the window may close quickly as interest rates fall.”
Knight Frank advised Feldberg Capital and Savills advised the undisclosed institutional investor.
