Investment manager Fidelity International has bought a prominent office at 99 Queen Victoria Street, London, for a new sustainable real estate fund.
The 88,000-square-foot office next to One Millennium Bridge has been acquired for the Fidelity European Real Estate Climate Impact fund for an undisclosed sum.
Fidelity International plans to fully refurbish the property and provide BREEAM Excellent, EPC A, Nabers Five Star and Wiredscore Platinum accreditations in line with net zero carbon targets.
The new design has simplified and clear floorplates across all levels. Energy efficiency will be increased by removing gas equipment and installing new air source heat pumps as well as a building management system. New lower ground floor tenant amenities will include showers, cycle parking and also EV chargers for bikes and scooters.
New accessible terraces and amenity spaces will be created. Planting will be integrated, increasing the building’s Urban Greening Factor.
Fidelity International Fund targets
Fidelity’s climate impact fund targets commercial real estate in Western Europe that requires sustainable retrofits and refurbishments to deliver a net zero carbon pathway.
Neil Cable, head of European real estate investments at Fidelity International, says, “While investors can buy new assets built to higher environmental standards, the biggest scope for achieving impact lies in the buildings that exist today, most of which are expected to still be around by 2050. Refurbishing and retrofitting these buildings can both reduce the carbon footprint of our built environment and improve the well-being of those who use them.
“Turning brown to green also presents a significant investment opportunity as there is currently a chronic undersupply of net zero carbon space versus occupier demand, resulting in a green premium. This structural mismatch will erode over time, but we believe the next five to seven years represent a rare opportunity to deliver disproportionate returns for carefully managed development risk.”
Lisa Moran from James Andrew International, which acted for Fidelity on the purchase, adds, “It is exciting to have delivered the first building purchase for the new Fidelity European Real Estate Climate Impact Fund. The fund looks forward to achieving its objective of refurbishing and repositioning commercial real estate in Western Europe to deliver sustainable office environments for the future.”
Cushman & Wakefield acted for the vendor.
