Financing a 100% net zero building in London's office market
The planned development at 105 Victoria Street, London sets a new bar for sustainability in the real estate industry. JLL's Debt Advisory specialists played a pivotal role in securing funding.
Capital Markets - Debt Advisory
London's office market is undergoing a phase of redevelopment as landlords and real estate owners acknowledge the importance of addressing sustainability and adapting to new hybrid working patterns.
Welput, the specialist central London office fund managed by BentallGreenOak (BGO), has ambitious plans to construct the UK's largest fully electric building with net zero emissions on a landmark site in Westminster.
To bring this visionary project to life, welput sought financing and turned to JLL's Debt Advisory team to facilitate a loan with a reputable and committed lender.
A sustainability-driven development
The planned development at 105 Victoria Street sets a new bar for sustainability in the real estate industry.
The building is designed to operate exclusively on 100% renewable energy sources, thereby ensuring net zero emissions throughout its lifecycle. This commitment to carbon neutrality will begin during development, where cutting-edge technologies and practices will facilitate ultra-low carbon construction, with the expectation of offsetting the emitted embodied carbon within six years of operation, when compared to refurbishment of the existing building
Ultimately, the aspiration is to achieve marketing leading sustainability which in turn has led to prestigious certifications, including Building Research Establishment Environmental Assessment Method (BREEAM) 'Outstanding' and WELL 'Platinum,' showcasing the deep commitment to sustainability and well-being.
Beyond energy efficiency
More than just an energy-efficient building, the development responds to the rising demand for eco-friendly and community-oriented spaces. Rooftop levels will feature green spaces and urban farming initiatives, such as a 200 metre long looped 'walk and talk' track and an urban farm. These not only enhance the building's aesthetics but also contribute to improved air quality and biodiversity.
At street level, the space will be dedicated to public and retail areas, fostering community engagement. Moreover, the office component will attract and support growing businesses with affordable workspaces, promoting entrepreneurship and local economic growth.
JLL's Debt Advisory specialists played a pivotal role in securing funding for this impressive project running a targeted process utilising their extensive global network of capital markets sources. Ultimately, Allianz Real Estate* emerged as the chosen lender, committing £200 million to the £400 million development finance facility. Alongside equity investments from three other consortium members, this financial support ensures the realisation of the project.
With a targeted completion date of Q2 2026, this building represents the industry's commitment to a more sustainable future.
JLL's expertise in facilitating environmentally responsible financing demonstrates the potential for ambitious projects to embrace green practices and positively impact local communities.
*Now PIMCO Prime Real Estate