Welput, a central London office fund managed by property firm BentallGreenOak (BGO), intends to create a green-focused £1 billion 470,000 square feet commercial building in Victoria.
The site is currently used by retailer House of Fraser which is set to exit, and ultra-low carbon construction methods are planned.
Welput said the development’s energy will be supplied from fully renewable sources, and the building will feature a walking track on the roof for staff to use, a gym, and a cycle ramp into the property.
Confidence to invest in the 105 Victoria Street project without having definite tenants lined up, comes despite some companies looking to reduce their office sizes in their post-pandemic workspace plans.
Many bosses will embrace more flexible working, but developers are betting on firms competing for the most modern space, even if it is only used for part of the week by employees.
Ker Gilchrist at BGO said: “London is already showing real signs of recovery following the pandemic and we have absolute confidence in its future as a global hub. Likewise, we have no doubt the office itself will remain the beating heart of the work and culture of business.”
He added: “But to attract occupiers it is imperative that the workplaces of tomorrow continue to pioneer new innovations and raise the bar for what is possible in terms of sustainability.”
Businesses are increasingly looking at their environmental, social and governance (ESG) credentials. Recent research from Knight Frank said London’s most environmentally-friendly offices are commanding rent premiums of 12.3%.
Work on the 105 Victoria Street site is expected to complete in the first quarter of 2026.
It has been designed by architecture firm KPF, alongside Henning Larsen.