Fidelity International (Fidelity) announced the purchase of 99 Queen Victoria Street (99 QVS) in central London as part of its new Real Estate Climate Impact Fund. Bought for an undisclosed figure, Fidelity plans to fully refurbish the property in line with net zero carbon targets to create a fit-for-purpose landmark office building.
The repurposed building will comprise of 8,175m2 of office space and BREEAM Excellent, EPC A, Nabers Five Star and Wiredscore Platinum accreditations.
99 QVS forms a prominent site adjoining the redeveloped One Millennium Bridge and benefits from excellent connectivity. The City of London stands as a global financial capital and continues to attract an increasingly diverse range of occupiers.
The new design will provide simplified and clear floorplates across all levels that are fit for modern day use. Refurbishments will focus on improving energy efficiency, including the removal of gas equipment, installation of new air source heat pumps and a new building management system. New tenant amenities will be provided at lower ground floors with cycle parking, EV chargers for bikes and scooters and showers.
The new accessible terraces and amenity spaces will be created as part of the proposals with panoramic views across the City and beyond. As part of these terraces, planting will be comprehensively integrated, vastly increasing the building’s Urban Greening Factor and supporting the target of BREEAM Excellent.
99 QVS is the first purchase in the Fidelity European Real Estate Climate Impact Fund (the Fund), Fidelity’s first Article 9 SFDR impact fund, tackling this issue. The principal objective of the Fund is capital appreciation through direct property investments which aim to support the mitigation of climate change and the transition to net zero carbon.
Neil Cable, Head of European Real Estate Investments at Fidelity International, comments: “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 wellbeing 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. 99 Queen Victoria Street is one of a series of investments in the pipeline for our new Fidelity European Real Estate Climate Impact Fund.”
Cushman & Wakefield and James Andrew International Ltd acted for the vendor and purchaser respectively. Fidelity International intends to begin refurbishment in early 2024 with completion expected in 2025.
