BNP Paribas Real Estate Investment Management (REIM) has finalised the purchase of 25 Victoria Street, a prominent office building in Central London, from Delancey Real Estate. The acquisition, valued at £42.5 million, represents a strategic expansion for BNP Paribas REIM’s portfolio, particularly for its European Impact Property Fund (EIPF).

This property, encompassing a total area of 53,652 square feet, stands as the first UK acquisition for the EIPF and marks the fund’s tenth overall purchase. The Grade A building features a mix of office, retail, and leisure spaces distributed across nine floors and is currently leased to six tenants.

Swati Srivastava, head of institutional sales and investor relations at BNP Paribas REIM, highlighted the alignment of the European Impact Property Fund with the Paris Agreement, aiming to pioneer efforts against climate change. The fund has set an ambitious goal to significantly reduce greenhouse gas emissions across its portfolio within a decade. This objective will be pursued through targeted capital expenditure interventions to improve the environmental performance of the properties.

Ben Mort, investment manager at BNP Paribas REIM, emphasized the investment’s potential, noting the building’s attractive tenant base and build quality. The fund aims to enhance the property’s environmental status by reducing greenhouse gas emissions and energy consumption. The Victoria area, where the building is located, is expected to witness strong prime rental growth in the coming years. BNP Paribas REIM’s strategy involves acquiring and managing ‘living assets’ as part of a broader approach to sustainable investment.

Legal and financial advisory for the transaction was provided by Michael Elliott and Norton Rose Fulbright for BNP Paribas REIM, while CBRE and Hogan Lovells acted on behalf of Delancey Real Estate.

This acquisition by BNP Paribas REIM underscores the continuing interest and investment in London’s commercial real estate market, particularly in sustainable and environmentally conscious properties.