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A development platform focused on delivering best-in-class net zero carbon office space in central London.

To acquire and retrofit existing environmentally poor office buildings, converting them into best in class net zero carbon product

Strategy

Environmental Improvements and Non-Compliant EPC Buildings

Targeting

Management team with combined 70yr + track record delivering superior returns to investment partners

Track Record
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Buildings account for 78% of emissions in London

A Typical Zero Carbon Building

Nabers 4.5

Green electric building

EPC ‘A’ rating

Targeting ‘Excellent’ rating

WELL GOLD

Cyber Essential accreditation and GDPR compliant

Targeting ‘Excellent’ rating

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Best-in-class ‘green buildings’ will achieve maximum pricing, tenant interest and maximum rents

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By 2030, all office buildings in the UK need to have a minimum EPC rating of B to be legally lettable

impact

There are currently 50,000 office buildings in London, of which it is estimated that by 2030 only 10% of these will be compliant with the minimum EPC rating of B.

 

There will be many obsolete office buildings which can not legally be let unless they are retrofitted and this comes with expense, and a special skill set to deliver.

 

Further, completing the necessary works to achieving the standard may cause tensions between occupiers and landlords as the tenant is unlikely to want to sacrifice their access for works to take place. Temporary exemptions are stipulated in the legislation to help navigate these challenges, but we are likely to see landlords being obliged to take advantage of lease events to ensure changes are enacted as soon as possible in order to avoid breaching requirements.

Some landlords may attempt to gain rolling five-year exemptions based on technicalities, but we expect the government to make this increasingly onerous and costly, notwithstanding the reputational risk this could exert on the building owner or operator.

 

This widespread risk of obsolescence will help contribute to liquidity in the market as investor/ developers look to leverage this risk to acquire discounted stock for retrofit or redevelopment.

 

This will create a two tier market. Best in class ‘green buildings’ will achieve maximum pricing, tenant interest and maximum rents.

 

RICS have updated their valuation methodology and have asked valuers to take EPC into account when valuing buildings.

CONTACT