Feldburg Capital has reached first close on its new £500m ‘brown to green’ ReForm fund, which will target office assets in amenity-rich zone one locations in London.
Feldburg said the fund had received “significant backing from a cornerstone UK institutional investor” and has a fundraising target of £300m, which will provide firepower of around £500m including leverage.
David Turner, head of investment at Feldberg, said: “With the tightening of MEES regulations and a significant proportion of existing stock suffering from poor energy performance and increasing obsolescence, coupled with increasing occupier demand for high-quality workplace, we are seeing a significant opportunity to acquire discounted real estate and apply our unique skillset to create best-in-class green workplaces.”
Will Amies, head of business development at Feldberg, added: “In a challenging market environment, securing a cornerstone investor reflects the relevance and appeal of our latest venture and the confidence of investors in our abilities and track record. With a constrained future development pipeline, energy efficiency regulations looming and occupier requirements evolving, this fund is perfectly positioned to take advantage of this opportunity.
“We’re now in active discussions to raise further funds from local government pension schemes, UK multi-managers, corporate pension funds and other professional investors as we look to create a war chest to target a space rich in opportunity.”
