Legal & General Investment Management Real Assets (LGIM Real Assets) announces the final letting at 390 Strand, its 6,450 sq ft Capsule office building near Covent Garden in central London. Capsule is Legal & General’s ready to go workplace offer.
24 May 2022
The building is one of 19 properties in LGIM Real Assets’ Sustainable DC Property Fund which places responsible investing at its core to meet the growing demand for protecting and enhancing real estate assets against the effects of climate change and in turn creates long-term value and performance. The Fund’s ambitious environmental, social and governance (ESG) aims include targeting net-zero operational carbon in the direct property portfolio by 2030, improving social impact and screening tenants based on ESG exclusion criteria.
Capsule has now leased over 1,300 desks in 44 deals since its launch in 2018, creating over £16 million of added value for investors. Capsule provides high quality, furnished and work-ready office space, offering a range of options to suit different occupier needs, moving away from the traditional Category-A fit out and longer lease length to fully fitted space let on a more flexible basis.
Lettings at the six-storey building range from 1,000 to 1,400 sq ft on five-year leases. Tenants include Viewforth Investment Partners, Quint Events, Sutton Architects, Harris Systems and Ludlow Group, with Holland & Barrett leasing the ground floor. Each floor accommodates from eight to 20 workstations and has its own reception, waiting area, meeting rooms, toilet facilities, kitchenette, fibre connection and break out space.
The property was substantially refurbished in 2020 with a redesign of the entrance and interior as well as a renovation of the front façade. Measures taken to enhance the ESG credentials of the building include the installation of a VRF combined heating and cooling system and a heat recovery ventilation system, LED lighting, water saving measures including leak detection and meters installed to each floor to enable occupiers to monitor their own lighting, electricity, and air conditioning usage.
A live air monitoring system measures the indoor air quality helping promote optimal health, comfort, and productivity. The building’s air quality was awarded a platinum AirScore by AirRated. The improvements have propelled the building’s EPC rating to B and a BREEAM in-use certification of excellent is being targeted.
Capsule reacts to an evolving managed market and complements Legal & General’s wider offer of developing and managing office assets. Other Capsule locations are available nearby at 43 Eagle Street, 55 Strand and Burleigh House, Strand.
Will Edwards, Head of Emerging Strategies for LGIM Real Assets: “The recent lettings at this high-quality space shows how by working together as a team to combine our innovative office leasing strategies and ESG experience has created long-term value and performance, benefiting both occupier demand and our investors, as well as reducing risk.”
Andrew Mercer, Office Sector Lead for LGIM Real Assets: "Capsule takes the best qualities from Cat A office space and the flexibility of co-working, to provide companies with their own front door and ready-to-go offices tailored to their specific needs.
We are pleased that despite the levels of competition in Covent Garden, these businesses have chosen a direct product from a trusted landlord. The building’s ESG credentials, high quality fit out, location and indoor environmental quality monitoring make it an easy choice for businesses scaling their own brand that truly value the wellbeing of their employees.”
Notes to editors
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.4 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
*at 31 Dec 2021
Legal & General Investment Management Real Assets (LGIMRA) is a division of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £1.28tn in assets (as at 31 December 2020), working with a range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
LGIM Real Assets has assets under management of £36.3bn (as at 31 December 2020) and is one of the largest private markets investment managers in the UK. Investing in both debt and equity and across the risk/return spectrum, LGIM Real Assets actively invests in and manages assets across commercial, operational and residential property sectors, as well as infrastructure, real estate, corporate and alternative debt.
Taking a long term view in order to future proof our investments, LGIM Real Assets continues to lead the industry in ESG performance, considering all environmental, social and governance issues at asset level as well as portfolio level. In 2021, we are implementing a strategy as part of our commitment to net zero carbon emissions across the real estate equity business by 2050, and have also committed to measuring social value across 20% of our platform by the end of the year.
(As of June 2021)
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Past performance is no guarantee of future results. You should consult an independent investment adviser prior to making any investment in order to determine its suitability to your circumstances.