Feldberg Capital (“Feldberg”), on behalf of its real estate fund, Cora (“Cora” or “the Fund”), has acquired Ariel House, London W1, for approximately £29 million.
Cora is a brown-to-green workplace fund, investing in energy inefficient offices and using Feldberg’s tried and tested ESG capability to retrofit and reposition these assets into modern environmentally friendly workplaces. The Fund targets assets in central London’s growth locations underpinned by excellent connectivity and amenity, such as Covent Garden, Soho, Fitzrovia and Bloomsbury. The investment strategy for Cora includes ambitious ESG targets and features.
Ariel House represents 23,820 sq. ft. of office space spread over eight floors (lower ground, ground and six upper floors), with a private roof terrace on the sixth floor. It is ideally located on Charlotte Street, a vibrant, amenity-rich micro-location in the heart of London’s buzzing Fitzrovia, just a short walk from the new Elizabeth Line station at Tottenham Court Road.
In line with the fund strategy for Cora, ESG upgrades will be undertaken at Ariel House, including the replacement of gas boilers with an electrified heating system. The Fund’s focus on social sustainability will see the creation of an asset-specific charity partnership chosen based on the results of a local needs assessment of the Fitzrovia area.
Cora received significant backing from a cornerstone UK institutional investor in October 2023, followed by a second close in December 2023. The Fund has a fundraising target of £300 million, providing a firepower of around £500 million including leverage. Ariel House is Feldberg’s third acquisition for Cora, following the acquisitions of 8 Bloomsbury Street in Bloomsbury and 21-25 Bedford Street in Covent Garden which are both being upgraded.
Luke Duckworth, Fund Manager at Feldberg said: “Ariel House, Cora’s third acquisition, fits squarely with our strategy of creating sustainable, best-in-class workplaces in prime West End locations, benefitting from strong occupier demand and favourable entry pricing. Situated on Charlotte Street in Fitzrovia, the asset complements Cora’s recent acquisitions in Bloomsbury and Covent Garden, and offers significant asset management upside.”
Savills advised Feldberg Capital and Crossland Otter Hunt advised the vendor, an institutional investor.