Landsec agrees forward purchase of new office space in Oval Village development
31 August 2021
Landsec, one of the largest real estate companies in Europe, has conditionally exchanged contracts to forward purchase Oval Works, a standalone office space that will form part of Berkeley’s Oval Village.
The transaction reflects Landsec’s commitment to optimising its Central London portfolio through the reinvestment of capital into growth opportunities. With rents for prime conventional space expected to be in the range of £50 to £55 psf, this area of London offers a lower price point than more traditional locations. This is in line with our strategy to offer a broader range of propositions for office customers.
Oval Village is Berkeley’s 1,300 home community development in Lambeth, which includes the complete regeneration of the area covered by the century-old listed gas holders that sit behind Oval cricket ground.
Oval Works will span 76,800 sq ft across seven floors, providing workspace to over 750 employees. The large double-height reception will offer private entrances to different businesses as well as a wellness focused café and co-working space. In addition to its unique architectural elements, the sixth floor will boast a wraparound roof garden with a view of the iconic Oval cricket ground. The building will also have an entirely electric heating and cooling solution. Office workers are expected to move into Oval Works in 2025.
As part of Landsec’s strategy of creating long-term value for all its stakeholders, Oval Works represents the company’s disciplined approach to deploying capital into high quality, value add opportunities within Central London. Adding an all-electric building to its portfolio, thereby removing the reliance on fossil fuels, further demonstrates Landsec’s commitment to becoming a net zero carbon business by 2030. Landsec will work with Berkeley to create a vibrant mixed-use community, underpinned by a customer-led proposition of promoting healthy and sustainable spaces. In addition, Landsec has the potential to provide a mix of office products, including Myo, a flexible office brand.
Marcus Geddes, Managing Director of London, Landsec said:
“This is an exciting milestone in the delivery of our strategy, as we seek to optimise our London office portfolio by reinvesting capital into locations and products that can deliver strong returns.
“We want to create sustainable places that boost economic activity and foster wellbeing, knitting our office developments into the fabric of the city. Oval Works is an ideal opportunity to deliver on this ambition, creating a working hub in an emerging office location within central London. We look forward to collaborating with Berkeley to shape this special place.”
Paul Vallone, Divisional Managing Director, Berkeley said:
“Oval Village is an award-winning mixed-use development. Part of that success has been the significant contribution to placemaking that will come from Oval Works and the people who will work there. We are delighted to be working with Landsec who share our aspiration of high-quality buildings and spaces to make this a new destination for London.”
The best in class office building will target the highest level of BREEAM and WELL certifications. Ample cycle provision and end of journey facilities are to be provided to encourage healthy living and sustainable travel.
Oval Works is one of a number of commercial spaces that Berkeley is developing as part of the Oval Village masterplan. At the end of 2023, Phoenix Works will be delivered providing a more consolidated 25,000 sq ft of Grade A office space over two floors adjacent to Oval Works. Further ground floor office and retail provision will also be delivered across the scheme from summer 2024 onwards.
The Oval Works acquisition is conditional on receipt of planning.