105 Victoria Street is designed to be the largest net-zero office scheme in the UK
What Madison International Realty has invested in Welput’s redevelopment of the former House of Fraser site in Victoria, London
Why The firm considers the London office market one of its “strong conviction calls”
What next The development is expected to complete in 2026
Madison International Realty has agreed to invest in Welput’s £1bn redevelopment of the former House of Fraser site in Victoria, London.
105 Victoria Street, which will comprise 13 floors of office space, is designed to be the largest net-zero office scheme in the UK.
The 500,000 sq ft scheme will be the largest all-electric office in the country as it will use energy from fully renewable sources only, with no gas supply and no diesel generator onsite.
Early this month, BentallGreenOak’s Welput secured a £400m development finance facility from Canada’s PSP Investments and Allianz Real Estate to fund the development, which is expected to complete in 2026.
Alex Lukesch, head of European investments at Madison, which reportedly acquired a 14% stake in Welput in 2017 for more than £150m, said: “The London office market continues to be one of our strong conviction calls and its position as one of the world’s leading centres for business endures, with demand for high-quality space remaining buoyant.
“This transaction presented us with an opportunity to invest in an exciting office development project that sets new goals for sustainability and community engagement. Real estate that creates value and has a positive impact on its environment is important to long-term investors like Madison.”