Welput secures financing for UK's largest 100% Electric Net Zero Office

£400m development finance facility assures the 500,000 sq ft ultra-sustainable building will be delivered for 2026

Skanska appointed as main contractor for the scheme with construction due to start on site in Q3 2022

New co-investors share Welput's commitment to ground-breaking ESG credentials to attract the next generation of occupiers in the London office market

Welput, the specialist central London office fund managed by BentallGreenOak(BGO), has recapitalised its ownership of the landmark site, 105 Victoria Street, and secured a £400m development finance facility to fund the construction of the scheme, due to commence this year.

Marking a return to Victoria, and demonstrating global confidence in London's office market, the Public Sector Pension Investment Board (PSP Investments), one of Canada's largest pension investment managers, has co-invested alongside existing Welput investors in the development - the largest speculative West Ed office scheme ever to come forward, which, in April 2021, achieved Westminster City Council's single largest ever commercial building consent.

Allianz Real Estate has provided ca. £200m of the £400m development finance facility which will partly fund the construction of the scheme. The completed development will be able to accommodate office demand ranging from 4,000 sq ft up to almost 450,000 sq ft.

The project’s funding coincides with BGO’s appointment of Skanska as the main contractor to deliver the scheme. Work is expected to start on site in July 2022, with completion targeted in Q2 2026.

The development, which will be managed by BGO, reflects its leadership in the sector will go well beyond industry standards for sustainability, the 500,000 sq ft building will not only be operational net zero, but achieve net zero embodied carbon using innovations in ultra-low carbon construction to minimise the carbon intensity of the development such that the carbon emitted will be offset within six years of the new building’s operations in comparison to the retention and refurbishment of the existing building.

Not only will the building be the largest all-electric office in the UK, but BGO has committed to the development’s energy being supplied from fully renewable sources, with no gas supply and no diesel generator on site, ensuring zero fossil fuels in operation and during construction. As a result, the building is designed to meet EPC A and WELL ‘Platinum’ certification and exceed RIBA 2030 sustainability targets as well. The scheme is also the UK’s first office building to target a combined BREEAM ‘Outstanding’ and 5.5* NABERS rating, the world-leading environmental performance rating tool which rates the operational energy use of offices.

BGO has engaged partners to deliver the scheme that are aligned with its own ambitious ESG vision and can meet the demanding standards of sustainability and positive social impact that the project requires; Allianz Real Estate, PSP Investments and Welput’s investors have all committed to contributing to the project’s robust Social Impact Charter, which will implement ambitious programmes across school engagement, volunteering, and upskilling in the local community.

Ker Gilchrist, Managing Partner at BentallGreenOak said:

“PSP Investments’ commitment, alongside existing Welput investors’ in 105 Victoria Street, demonstrates an ongoing commitment to London and an absolute confidence in its future as a global hub. This project is surpassing the existing and emerging standards for green development, with a comprehensive whole life carbon approach. The building will achieve net zero in construction, then operation, and after just six years of its lifespan will be net beneficial to the environment. To deliver this ultra-sustainable building and attract the next generation of aspirational tenants, we have secured a significant financial deal with partners that stand shoulder to shoulder with us on our commitment to ESG and who bring a strong track record in projects of this nature.”

Designed by architect Kohn Pederson Fox, alongside interior architect Henning Larsen, 105 Victoria Street will create a new kind of community-focused, experiential building in Victoria, providing up to 450,000 sq ft of world-class workspace, including 5,500 sq ft dedicated to incubator and affordable space, and over 30,000 sq ft of retail space, all designed to foster the health and wellbeing of its end users.

It will also provide almost 30,000 sq ft of greenspace and terracing – the largest of any commercial building in the West End and equivalent to 10 double tennis courts – which will include a 200m ‘walk and talk’ track and an urban farm with community allotments.

Dedicated space to serve and connect the community will cover 90,000 sq ft, with a central Village Square provided at street level, providing inclusive public space and serving the neighbourhood needs with a considered retail offering that is aligned with the sustainable and community focused ethos of the building.

Welput, is also developing an extensive programme with the local community and stakeholders to ensure the building provides benefits to the local area, including providing dedicated flexible space for community use, engagement programmes with local schools and initiatives to support disadvantaged groups.

Stéphane Jalbert, Managing Director and Head of Asia-Pacific and Europe, Real Estate Investments, PSP Investments, said:

“PSP Investments is pleased to establish this new partnership with BGO and Welput on what will be UK’s largest 100% electric net zero office building. This fossil-fuel-free development aligns with PSP's strategy to invest in sustainable buildings that have a positive impact on the community and better position our London portfolio for the future.”

CBRE and JLL have been appointed as commercial leasing agents for 105 Victoria Street.

Contact:

Victoria Wooltorton, ING Media
victoria.wooltorton@ing-media.com
Tel: 020 7247 8334
Mob: 07860 271 390

More on 105 Victoria Street

• BGO undertook a rigorous sustainability assessment, led by leading carbon reduction consultant Sweco, to prove that the whole life sustainability benefits of new build on the site far outweighed that of retrofitting the existing 1970s constructed building, which is highly energy inefficient. The future-facing new building is also being designed to actively enable retrofit, repurposing and recycling at the end of its own lifespan, demonstrating a fully comprehensive approach to whole-life carbon in real estate.
• BGO’s sustainability agenda has ensured the delivery of solutions that minimise carbon usage for the whole life of the building. Creative design and use of materials will help manage heat gains and at the same time maximise natural ventilation to lower energy use by 30% when compared to a traditional office building, creating 182.5 days of self-sufficient cooling per year.
• Predicted savings for operational and construction embodied carbon against respective baselines are equivalent to the amount of carbon it takes 339,200 trees to sequester over 60-years before offsetting or purchasing of green energy towards becoming net-zero carbon.
• Living green walls and a considerable green roof assists with reducing air pollution and increasing the biodiversity of the urban space. The creation of on-site urban farming will provide fresh food and a means of local composting of biodegradable waste from within the building.
• Driven by occupier demand, the building’s c. 16,000 sq ft amenity floor will provide nourishing spaces that enhance wellbeing, designed around a programme of content focused on inclusive wellness including a 200m ‘walk and talk’ track with impressive views across London designed to encourage office workers to be active and collaborative
• Designed to achieve a WELL Platinum certification from the leading global marker for healthy buildings, the office spaces are marked on 10 core considerations: Air, Water, Nourishment, Light, Movement, Thermal Comfort, Sound, Materials, Mind and Community. Expansive floor to ceiling heights of 3.0 m create an abundance of natural light with sustainable façade design incorporating opening windows for mixed mode and natural ventilation.

EPC A and WELL ‘Platinum’ certification: For information see WELL Certified | International WELL Building Institute | IWBI

RIBA: For more information see 2030 Climate Challenge (architecture.com)

BREEAM: For more information see BREEAM - Sustainability Assessment Method

NABERS: For more information see >NABERS UK - BRE Group

About Welput

Welput was formed in 2001 and is the largest unlisted specialist real estate fund to invest in and develop Central London offices. The fund currently holds a portfolio of 9 assets, comprising over 1 million sq ft of accommodation, spread across Central London’s core sub-markets. Welput is wholly managed by BentallGreenOak (BGO) and is supported by a dedicated team of in-house specialists with extensive experience in the fund, asset and development management of London properties.

Since inception, the team has developed over 3.3m sq ft of accommodation on behalf of Welput and other BGO funds. Welput’s development strategy looks to challenge and outperform industry standards rather than tick boxes - continually seeking new and innovative ways to create a long-term positive impact on the city, but more importantly, the planet and the people who depend on it.

Maximising social impact is a key objective and a strategy for enhanced consultation with local communities helps to drive decision-making - connecting people and creating opportunity.

Welput’s world class and planet friendly places are designed with the future in mind. A pragmatic and prudent approach to management ensures the infrastructure and agility to meet evolving occupational and environmental needs. Over 20 years, Welput has forged long-term, collaborative relationships with some of the world's leading businesses, and continues to seek like-minded partners.

For more information, please visit https://welput.com/

About BentallGreenOak

BentallGreenOak is a leading, global real estate investment management advisor and a globally- recognized provider of real estate services. BentallGreenOak serves the interests of more than 750 institutional clients with approximately $74 billion USD of assets under management (as of December 31, 2021) and expertise in the asset management of office, industrial, multi-residential, retail and hospitality property across the globe. BentallGreenOak has offices in 28 cities across thirteen countries with deep, local knowledge, experience, and extensive networks in the regions where we invest in and manage real estate assets on behalf of our clients in primary, secondary and co-investment markets.

BentallGreenOak is a part of SLC Management, which is the alternatives asset management business of Sun Life.

The assets under management shown above includes real estate equity and mortgage investments managed by the BentallGreenOak group of companies and their affiliates, and as of 1Q21, includes certain uncalled capital commitments for discretionary capital until they are legally expired and excludes certain uncalled capital commitments where the investor has complete discretion over investment.

For more information, please visit www.bentallgreenoak.com

About PSP

The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with $204.5 billion of net assets under management as of March 31, 2021. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on Twitter and LinkedIn.

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