German fund manager Union Investment is investing EUR 34 mln in the refurbishment of an office property in the City of London to cater for the demand for energy-efficient core space in London's financial district.

Refurbishment work on the eight-storey property Finsbury Circus House, which was built in the 1980s, commenced in March and will increase the existing office space by 15% to 12,700 m2. Completion is scheduled for the start of 2013.

'We are returning the property to its former status as the prime address in Finsbury Circus,' said Karl-Joseph Hermanns-Engel, member of the management board of Union Investment Real Estate. 'The current market cycle provides an almost perfect opportunity for refurbishments in prime locations such as this. Repositioning our property will enable us to meet the high demand for energy-efficient core properties in one of the best locations in the City of London.'

The building is to get a new north façade, which will provide dual entrances from Finsbury Circus and South Place and improve links with the Broadgate and Liverpool Street Station transport hubs. In addition, it will gain a new top floor during the 18-month refurbishment project, adding a further 11,500 m2 of office space plus a roof terrace overlooking the gardens of Finsbury Circus.

Union Investment is aiming to obtain BREEAM 'Excellent' certification for this Grade A property, which forms part of the UniImmo: Deutschland portfolio. The new building will consume around 60% less energy than the existing property.