Castleforge and Gamuda Group, advised by Savills, have announced the acquisition of Winchester House, the current London HQ of Deutsche Bank. The 320,000 sq ft building will be redeveloped to create true best-in-class office accommodation, delivered to the highest of environmental credentials, with a project development value in excess of £1 billion.
The project development value makes Winchester House one of the most significant deals in the City’s history, and underscores the strength and resilience of the City investment market.
A comprehensive upgrade and refurbishment plan is expected to transform the 320,000 sq ft space into top-quality office space, offering Grade A facilities and ESG credentials for blue-chip occupiers in a prime location.
With renovations expected to be completed by 2027, potential occupiers are already in discussion to lease office space in the building.
Since its inception in 2010, Castleforge has invested approximately £1bn, gaining a strong reputation for value-add investment in office, residential and hotel real estate across the UK and Europe.
This most recent acquisition represents a “step up” in its investment activity around high-quality, green offices, and sees the company bring together its expertise with Gamuda. Winchester House is the third project Gamuda has undertaken in the UK with its longstanding real estate investment manager Realty Corporation, following its success in the Malaysian, Australian and Vietnamese markets. It is currently building Malaysia’s largest public infrastructure project, the Klang Valley Mass Rapit Transit, and the Sydney Metro West – Western Tunnelling Package.
Castleforge’s portfolio of commercial space in the City of London already includes the Grade II listed 1 Golden Lane, which was recently granted planning approval for extensive refurbishment and extension.
These projects are underpinned by Castleforge’s research, which highlights significant demand for high-quality, green offices among medium to large companies. These tenants require Grade A sustainable office space to attract talent and to hit ESG targets.
Castleforge’s buildings create a new standard for best-in-class office spaces, which achieve the top ratings in recognised environmental accreditations such as BREEAM Outstanding, WELL Platinum and NABERS 5*. Alongside premium amenities and working facilities, these spaces deliver low carbon impact with improved quality airflow, energy efficiency and SMART technology.
Michael Kovacs, Founding Partner of Castleforge said: “Winchester House is a landmark acquisition for Castleforge and the City. Working with Gamuda, we are confident that we will see this space transformed to trailblaze a new class of amenity rich and sustainable offices in the area.
“This is a very exciting development not just for us but for potential future tenants looking to collaborate in the best office space available, right in the heart of London. Doing so makes for better business and helps firms meet their ESG targets. We look forward to progressing to the next stage of planning for this prime location.”
Chu Wai Lune, Chief Executive Officer of Gamuda Land said: “The acquisition of Winchester House is a strategic opportunity which is part of our Quick Turnaround Project (QTP) portfolio as we further expand our property development investment in the UK. This urban regeneration project is a compelling undertaking in a highly sought-after location in Central London. With the aim to achieve the highest level of ESG accreditations (BREEAM Outstanding); Winchester House will make a mark in the growing demand for Grade A ESG office.”
Jonathan Lurie, Managing Partner at Realty Corporation, added: “A reimagined Winchester House delivers a world-class office product, and is a strong vote of confidence in the competitiveness of the City as the unrivalled hub of global commerce and finance. Consistent with our conviction investment theme of delivering world-class office space that leads the way with environmental credentials and superior design, Winchester House cements our continued relationship with Gamuda Berhad to deploy capital into compelling development opportunities.”
Daniel Gaunt, Central London Investment director at Savills, commented “The acquisition of Winchester House by our clients represents a landmark transaction in the Central London market. Situated within 200 metres of Liverpool Street station, the future scheme will provide high quality sustainable offices that will appeal to a broad spectrum of major corporate occupiers all looking to meet their organisation’s increasingly stringent ESG targets.”