The letting to Redburn, a research-led advisor to fund managers on equity market investments, for the sixth and seventh floors (12,468 sq ft and 11,588 sq ft, respectively) of Capital House represents the most recent milestone in Barings’ business plan for the 120,000 sq ft office building, which includes ground floor retail and is located at 85 King William Street, a one-minute walk from Bank station.

The deal with Redburn, part of the Rothschild & Co Group, marks the completion of the letting campaign and follows a total of 75,642 sq ft of lettings at Capital House since December 2022. This includes the lettings of the first (13,571 sq ft), second (14,183 sq ft) and third (14,206 sq ft) floors to Rothschild & Co for a combined 41,960 sq ft, as well as the eighth floor (9,626 sq ft) to Trading Technologies in February 2023.

BH2 and Savills acted on behalf of Barings.

Having been acquired in July 2021 on behalf of a pan-European strategy to acquire core real estate, Barings has invested over £11m refurbishing the space with the view to provide high-quality, amenity led spaces that set the standard for offices in the City of London. While also enhancing the building’s ESG credentials, as part of the refurbishment, Barings styled a new reception with integrated coffee bar, installed new passenger lifts, improved facilities for cyclists and runners including 101 bike racks, six folding bike lockers, seven electric charging bike points and ventilated drying lockers, refurbished the vacant floors of the building (including the implementation of a decarbonisation strategy to transition the building away from gas to all electric central plant), created new terraces on the sixth, seventh and eighth floors and added extensions to the eight floor increasing the net internal area of that floor by 22%.

Having been transformed from an EPC D, the refurbished floors have attained EPC B ratings with BREEAM Excellent accreditation awaiting verification. It also features WiredScore Platinum certification.

Ian Mayhew, Managing Director, UK Real Estate Asset Management, at Barings, said: “Our business plan for Capital House has progressed at pace and the quality of the asset is amply evidenced in Redburn’s decision to take two floors alongside its parent company. We acquired this asset at 55% occupancy. Not only have we re-let the vacant space, we have also pre-let two further floors that were already subject to short term tenancies, eliminating any potential void periods, with a further £3m to be spent refurbishing those floors later this year on gaining vacant possession. In the medium term, there remain just two floors that will require repositioning on lease expiries. The speed at which we have let Capital House, the refurbishment of which has only recently completed, is a vindication of our belief in the attractiveness of best-in-class workspaces with prime ESG credentials in excellent locations; a strategy we continue to follow with our other central London office developments and refurbishments, including 25 Moorgate and TIDE Bankside where our leasing campaigns have recently been launched in the market.”

Contacts
Tali Robinson/Polly Warrack/Ben Monteith (SEC Newgate)
baringsRE@secnewgate.co.uk

Barings Real Estate
Barings Real Estate (BRE) is a part of Barings and offers a broad range of global investment opportunities across the private debt and equity investment markets. BRE invests in all major property sectors and offers an expansive range of financing solutions to real estate borrowers. Follow us on LinkedIn at www.linkedin.com/showcase/barings-alternative-investments.

About Barings
Barings is a $351+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment.

*As of June 30, 2023

Media Contact
MediaRelations@barings.com