Royal London Asset Management (RLAM), on behalf of Royal London UK Real Estate Fund (RLUKREF), has entered into a preleasing agreement with global law firm Hogan Lovells on its 266,000 sq ft Holborn Viaduct redevelopment. The merging of three buildings will deliver a new ‘Best in Class’ Headquarters office building over 16 floors.
The building is situated across the road from its existing headquarters allowing Hogan Lovells to continue their long term landmark association with Holborn. A location that provides some of the highest degrees of mobility and ever improving local amenity for building users, along with uninterrupted and iconic views from multiple outdoor terraces.
A collaborative design between RLAM and Hogan Lovells resulted in a space to fit a post-pandemic workplace for the future that meets both parties’ sustainability targets (1).
The new development is designed to offer better commercial, environmental, and social benefits. Compared to the existing three buildings a 34% reduction in energy consumption through passive design and systems efficiency has been achieved, with an overall 54% reduction using the GLA assessment method. A climate change risk mitigation plan is in place, ensuring Hogan Lovells will be able to enjoy long term sustainable occupation in their new home.
Planning consent was granted in December 2021 and development is scheduled for July 2022. Hogan Lovells plan to move across the road into the development in December 2026.
Drew Watkins, RLUKREF Portfolio Fund Manager, said: “The preleasing of this development is an excellent result for Royal London’s UK Real Estate fund. It represents the culmination of years of active asset management and runs to the heart of the fund strategy. Holding prime centrally located assets and city blocks for the long term, that are better suited to recycling than trading. Deriving a higher proportion of return from redevelopment, de-risked by the fact that even significant development is not concentrated due to the scale of the fund. This has made the fund an ideal delivery partner for Hogan Lovells.”
Philip Sutton, Head of Development, RLAM Property: “The preleasing follows a long period of challenging work to obtain planning permission for this prime development with a project that embodies our Development Sustainability Standards to the full.”
Keith Miller, Head of Offices, RLAM Property: “We are delighted to have been able to work so closely with such a key RLAM Property customer, matching the accommodation needs of their business into the future. We are excited to start the delivery phase of this collaboration.”
Penny Angell, UK Managing Partner at Hogan Lovells, said: “Our London office is of considerable strategic importance to the firm and our clients. Having occupied the Atlantic House building since 2001, we are excited at the opportunity to redefine how our space can best support our business and create something bespoke, while staying true to our values, heritage and 40+ year history in Holborn Viaduct. Having the space and technology that reflects our evolving working style and is flexible enough to adapt as the future needs of our people and our clients change is critical.”
David Crew, Head of Corporate Real Estate at Hogan Lovells, said: “Hogan Lovells has a long history with the Holborn Viaduct area and we are excited to have signed an agreement for lease on this scheme. The development will meet our changing accommodation requirements whilst offering a vibrant, well-utilised facility that can be enjoyed by our people and clients alike. We are extremely supportive of the buildings high commitments to sustainability, greening and culture as it will support our responsible business commitments to the environment that include RE100, Race to Zero and our SBTi pledge to be net zero by 2030.”
Notes to editors:
(1) Key sustainability targets:
- BREEAM: Outstanding
- WELL: Platinum
- Wired Score: Platinum
- Energy Performance Certificate (EPC): A
- NABERS Design for performance (DFP): 5 star (estimated)
- Urban Greening Factor (UGF): 0.44 (City of London method)
- Embodied carbon: 650-800 Kg/CO2/m2 (A1-A5)
- A1-A5 CO2 emissions estimated to be 658.1 Kg/CO2/m2
For further information please contact:
Lena Nunkoo, PR Manager
Lucy Field, Press Officer
For information on Hogan Lovells, please contact:
Mariya Otaran, PR Manager at Hogan Lovells
About Royal London UK Real Estate Fund
The Royal London UK Real Estate Fund (RLUKREF) provides the opportunity to invest immediately and in scale into a large, diversified portfolio of UK commercial property. The underlying portfolio has been built up and managed over several decades, giving investors access to a wide range of high quality, prime assets that individually would be difficult and time consuming to acquire as they rarely come to market. The combined assets of the Fund are approaching £3.3 billion, with an annual rental income in excess of £117 million (31st December 2021).
RLUKREF is London centric, strategically overweight to offices in highly mobile, amenity rich locations in the major commercial districts of London’s West End and mid-town; flagship, experience retail in London’s key shopping areas (Covent Garden, Oxford Street and Bond Street); all serviced by last mile logistics and business space in suburban London and immediate surrounds. This is balanced by an underweight position in wider UK logistics and value/homeware orientated retail parks around London, other UK conurbations or UK regional administrative cities.
The scale of the fund enables investment in larger lots (£41.2m average lot) with limited asset or covenant concentration risk at portfolio level allowing the Portfolio Fund Manager to blend income from core holdings with active management through the life cycle of each asset enhancing the value of the portfolio.
For professional clients only, not suitable for retail investors.
The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.