Investor kicks off £150m office strategy with Wimbledon deal

Investor and developer Korol has made its first purchase as part of a £150m strategy to reposition older offices, buying Mansel Court in Wimbledon, SW19. Korol purchased the 23,000 sq ft office from the Carbon Neutral Real Estate Fund, a joint venture between Columbia Threadneedle, Stanhope and the Carbon Trust. The property was redeveloped in 2013 to be a low-carbon office building. It has three tenants – ProAmPac, Precisely and Statpro – with the latter vacating at the end of the year. Korol said the move gave it the opportunity “to enhance and reposition these floors to provide exceptional office accommodation, as well as carry out building-wide improvements”. The investor aims to generate risk-adjusted returns via strategic repositioning of older, energy-inefficient office buildings into grade-A spaces. It also aims to partner with other investors to explore projects by way of co-investment and joint ventures. Alex Jordan, founding partner at Korol, said: “Mansel Court was a market-leading redevelopment that was ahead of its time, offering 50% better energy efficiency and good amenities. As technology and sustainability initiatives have evolved and improved, we feel there is an opportunity to take the building to the next level by targeting net-zero carbon. “We are looking to work with our professional team to further reduce emissions through the use of air source heat pumps and PV panels, as well as undertaking other enhancements, including remodelling the reception with recycled materials, to offer a best-in-class office environment for the existing and new tenants.” Hiwad Shakaib, founding partner at Korol, said: “The flight to quality has been demonstrated by numerous occupiers placing a greater focus on sustainable workplaces with best-in-class amenities. With this in mind, we believe Mansel Court will meet these needs and stand out from the crowd following the improvements we are looking to implement. “We see the office sector as an exciting space to be investing in, where its ‘hotelification’ has been under way for some time, accelerated by the pandemic. With the advantage of being equity-funded, we can act decisively and invest capital to transform tired buildings into spaces that meet the evolving needs of occupiers, while also delivering for investors.” Before co-founding Korol, Jordan was co-founder and director at IV Real Estate. Somerford Real Estate advised Korol on the Wimbledon acquisition; JLL acted for Columbia Threadneedle. To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews