London-based real estate developer and asset manager W.RE, has committed to £52m (€62 mln) GDV office development in Parsons Green, South West London.
The investment will be conducted through a JV with US private equity firm Taurus which recently opened its Taurus UK subsidiary.
The property was acquired from Martins Properties with Puma Property Finance (PPF) providing over £30 mln (€35.8 mln) of acquisition and future development funding.
The 4,180 m2 Alexander House project takes advantage of the rising demand for Grade A, well-connected business space nearby residential hotspots like Parsons Green.
Andrew Haines, COO of W.RE said: ‘This area of South West London is popular with professionals and families due to good transport links, but it is lacking high-quality office space. We will deliver a sustainable, best-in-class building that will take advantage of the increasing requirement from tenants for workspace in attractive locations outside of historic core central London.’
Nick Jacobs, executive managing director, Taurus UK, added: “As the return to the office continues, there is significant demand for Grade-A office space, especially in Fulham and South West London, where there is great quality of life. Parsons Green is within walking distance to local transit and local amenities, and will be outfitted with the latest sustainable building technology that ensure resilience through peak energy demand and meets the rigorous and aggressive climate targets for a safe and healthy future.’
Kevin Davidson, managing director, Puma Property Finance, commented: “We’re delighted to support this development and to be working alongside a leading office and commercial developer in W.RE, who have a deep understanding of the London office market. With growing evidence of a flight to quality in the office market, we see real potential in well-located speculative office developments that are being built with sustainability at their core, especially given that 80% of London office space will need to upgrade to meet EPC requirements by 2030.’
The building is targeting a net-zero carbon construction, BREEAM “Excellent”, and an EPC grade A to ensure it complies with EPC requirements for commercial space that will be in force in 2030.
The five-story structure will have two roof terraces on the third and fourth levels, air source heat pumps, PV panels, and plenty of natural light.
The existing property, which occupies a 0.13 ha freehold plot, consists of a class E office building that is partially rented, garages, and a small residential mews dwelling.
Construction should begin in early 2023 with completion anticipated in early 2025 after planning clearance was granted in September 2021.