Global investment firm KKR has taken a majority stake in TBC.London, a 110,000 sq ft (10,120 m2) development next to Tower Bridge promoted by investor and developer Fore Partnership.
The investment was made through KKR’s $2.2 bn second dedicated European real estate fund, KKR Real Estate Partners Europe II, and will fund Fore’s business plan and the delivery of the project, which is expected to complete in Q1 2024. Fore is committed to move forward with the project without a pre-let, and works on site are expected to commence imminently.
Fore is transforming an existing 1990s building on the bank of the Thames to create TBC.London, a sustainable and healthy office space in the UK. The workspace is anticipated to be 100% electric and net zero carbon in operation, with no fossil fuels used in running the property. The project is targeting EPC A, Breeam Outstanding, and Well Platinum ratings, the highest possible assessments.
Fore is a certified B Corporation, the global marker of businesses that balance profit with purpose, and has made a commitment to achieve net zero carbon by 2025, five years ahead of the wider industry target set by the World Green Building Council and well in advance of the UK’s 2050 goal.
Basil Demeroutis, manager partner of Fore, commented: ‘TBC.London is an exemplary new type of work environment, set to drive positive, systemic change by linking together social and environmental outcomes, which in turn are deeply linked to positive physical and mental wellbeing among our tenants and the wider community. TBC.London will appeal to the new generation of occupiers who understand that a workspace is about much more than just desks and is a crucible of the culture and values of a business. The building has attracted global institutional capital, reinforcing our belief in the strength of the London office market and that this is exactly the kind of building that London needs now.’
Charles Tutt, director and head of UK Real Estate at KKR, said: ‘This investment aligns strongly with our thematic conviction in high-quality office space, our strategy of working with leading developers, and our commitment to sustainable development. We see strong demand from businesses for modern and sustainable office space which meets their evolving needs and we look forward to working alongside FORE to deliver this innovative and well-located development into the London market.’
Reflecting Fore’s commitment to retrofit first rather than rebuild, the existing five-storey building will be stripped back and renewed through a deep refurbishment, preserving the embodied carbon in the frame. Two floors will be added, with a third additional floor set back from Tower Bridge to create a terrace and club room. All tenants of the building will have direct access to outdoor space through terraces, balconies, and gardens.
The ground floor will incorporate a flexible, 3,000 sq ft multi-use space that will be available for community uses.
Fore and KKR were advised by CBRE and RX London.