W.RE, the London-based real estate developer and asset management firm, in partnership with US private equity firm Taurus Investment Holdings (Taurus), has acquired 22,240 sq ft Alexander House at 14-16 Peterborough Road, Parsons Green. The acquisition marks W.RE’s first investment with Taurus and Taurus’ recommitment to the UK, following the launch of its new subsidiary, Taurus RE Investments Ltd (Taurus UK).
The building was acquired from Martins Properties with Puma Property Finance (PPF) providing over £30m of acquisition and future development funding.
The new building will have a strong focus on sustainability, with a specific independent energy strategy that is expected to reduce carbon emissions by nearly 50% from the baseline scheme. The site will be delivered in line with W.RE’s approach to delivering sustainability through design, delivering buildings that are built to last and are equipped for future demands, whilst targeting BREEAM “Excellent” and an EPC of A, and will be developed with a net-zero carbon construction target.
The acquisition forms part of W.RE’s strategy to identify development opportunities in central London and deliver flexible office spaces with high sustainability criteria to meet the growing demands of tenants for Grade A office space. Situated in the centre of Parsons Green, the building offers South West London residents high quality and well-connected office space, catering to workers’ desire for workspace that is within walking distance to transit, home, and local amenities.
Expected to offer approximately 45,000 sq ft. NIA of floor space on delivery, the five-storey building will benefit from an abundance of natural light, air source heat pumps, PV panels and two roof terraces on the third and fourth floors.
The current property includes a partially let class E office building, garages facing onto Peterborough Mews and a small residential mews house at 17 Peterborough Mews, comprising a freehold site of 0.33 acres. Planning permission for the scheme was granted in September 2021 for the redevelopment of a five-storey plus basement Class E commercial building.
The partnership intends to commence construction in early 2023 with completion scheduled for early 2025.
Andrew Haines, COO of W.RE said:
“We are delighted to have completed the purchase of Alexander House. The existing property is in a fantastic location just off the green in Parsons Green. 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. It was a pleasure to work with both Taurus and Puma in closing this deal during a challenging time in the market.”
Nick Jacobs, Executive Managing Director, Taurus UK:
“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. We believe that such investment is essential for the medium & long-term preservation of value. We also believe that it is our duty to invest with ESG factors as a key part of our strategies.”
Kevin Davidson, Managing Director, Puma Property Finance, comments:
“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. It is crucial to the health of our future society that we support the development of sustainable infrastructure now, and this should be an exciting project with those principles at its heart.”
W.RE has allocated substantial capital for office and retail repositioning opportunities in London, as a core strategy within its wider mixed-use development business. Its notable projects include the restoration of three historic Grade II listed buildings at 75 Grosvenor Street, the development of a 250,000 sq ft mixed-use campus between King’s Cross and Camden Town, as well as the refurbishment of the iconic Arding and Hobbs department store in Clapham Junction.