Back to news

Welput strikes £400m financing deal for net zero Victoria office

8th March 2022

Article by May Agaran

BentallGreenOak brings in debt alongside new joint venture partner

What Construction of the former House of Fraser store at Victoria Street is set to begin in July this year

Why Welput has recapitalised ownership of the site and secured a £400m debt facility to fund the development

What next Canada’s PSP Investments along with Allianz Real Estate and other Welput investors has confirmed their investment in the scheme, which is expected to complete in the second quarter of 2026

Work on the planned 100% net zero office building at 105 Victoria Street is to begin, as Welput has secured a £400m development finance facility to fund construction of the 500,000 sq ft scheme.

Welput, the specialist central London office fund managed by BentallGreenOak, which is also investing in the development, is joined by PSP Investments, one of Canada’s largest pension investment managers, and Allianz Real Estate, which provided £200m of the debt facility.

React News revealed last January that the Canadian firm was in talks with Welput for a minority stake in the scheme. PSP’s participation in the development marks its return to Victoria, after it teamed up with Tishman Speyer in 2018 to sell the nearby Verde office development to Deka for £455m.

The 105 Victoria address is the former home of the historic House of Fraser department store and will begin construction by July 2022 and delivery by the second quarter of 2026.