PROPERTY investment firm Castleforge Partners has announced the acquisition of 1 Golden Lane, as part of its renewed strategy for investment in London’s commercial market.

The Grade II listed building, situated in the Farringdon area between the Barbican Centre and the iconic Golden Lane Estate, started life in 1896 as the home of the Cripplegate Institute, a charitable foundation set up by the City of London. Designed by Tate Britain architect Sidney Smith, it once incorporated a reference library and a theatre.

Castleforge plans to fully refurbish the 106,892 sq ft office building to deliver a best-in-class workspace, meeting the highest possible BREEAM certification standards for sustainable and green office buildings.

As part of the renovations, the internal structure will be redesigned to deliver a low carbon impact with improved quality airflow, energy efficiency and SMART technology to automate the building’s systems to be responsive to tenant needs.

The redesign will also incorporate roof gardens and landscaping around the building to improve the area for incoming occupiers and local stakeholders.

The firm – which has been intentionally absent from London for several years while focusing its commercial investment on secondary cities across the UK and Europe – has identified a strong opportunity for office spaces in the capital.

The Castleforge research team identified a gap in the market in London for a new grade of office space that meets sustainable and low-carbon accreditations. The demand for green venues is particularly high for medium to large companies that will need to occupy green office space in order to hit their own ESG targets.

Castleforge will follow up its acquisition with further London office investments over the next 12 months.

Since its inception in 2010, Castleforge has invested approximately £1 billion, gaining a strong reputation for value-add investment in office and residential real estate across the UK and Europe.

Leading property consultancy Allsop advised Castleforge on the deal.

Michael Kovacs, Founding Partner of Castleforge Partners said: “We are thrilled to announce our acquisition on this prime site by the Barbican at 1 Golden Lane. This purchase will kickstart our renewed strategy to focus investment on London’s commercial market, driven by research we have been undertaking here at Castleforge.

“We have identified a significant shortage of best-in-class office buildings for leading companies in London that meet required sustainability standards. The market has not yet realised the true cost of upgrading old stock to meet modern standards and this issue can only be addressed by investors who are well-capitalised with the capability to deliver this grade of space.

“By undergoing a state-of-the-art refurbishment process, 1 Golden Lane will become one of the most premium and green office spaces in London and we look forward to unveiling the refreshed building for occupiers and local stakeholders alike.”

Chris Room, Partner, City Commercial Investment at Allsop said: “We were pleased to support Castleforge on this deal to purchase 1 Golden Lane. The Golden Lane premises are an iconic office space which has previously attracted some of the most influential companies in the world. Castleforge’s planned renovations will pave the way for the kind of green, flexible offices which are the future of workplaces in this country.”