The project — a joint venture between W Real Estate and Taurus RE Investment — will see the creation of a 45,000 sq ft, £52m GDV office building, comprising four floors and a basement.

The JV will use the three-year facility from Puma to acquire the site and develop the office scheme.

The project will be developed under a net-zero carbon construction target, and will include air source heat pumps, solar panels and 82 cycle spaces.

It is expected to achieve a BREEAM ‘Excellent’ standard and an A EPC rating upon completion.

The deal was led by Kevin Davidson, managing director at PPF.

This is the second deployment from its £300m funding line with Waterfall Asset Management, following a previous loan completion for a £65m GDV, 26-storey residential apartment block in Stonebridge Park, north west London in June.

Kevin commented: “We’re delighted to support this development and to be working alongside a leading office and commercial developer in W Real Estate, who has a deep understanding of the London office market.

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“With growing evidence of a flight to quality in the office market, we see real potential in well-located speculative office developments that are being built with sustainability at their core — especially given that 80% of London office space will need to upgrade to meet minimum EPC requirements by 2030.

“It is crucial to the health of our future society that we support the development of sustainable infrastructure now, and this should be an exciting project with those principles at its heart.” 

Andrew Haines, COO at W Real Estate, added: “The Parsons Green development is a fantastic project that represents a great example of future-proofing workplace, with sustainability at the centre of the construction.

“We have been delighted to work with PPF on this deal, and we believe both businesses have significant values in common, particularly around the environmental impact of both the construction process and the resulting development.

“We look forward to working with them and seeing this project come to life in the built environment.” 

Nick Jacobs, executive managing director at Taurus UK, stated: “As the return to the office continues, there is significant demand for Grade A office space, especially in Fulham and south west London, where there is great quality of life.

“Parsons Green is within walking distance to local transit and local amenities, and will be outfitted with the latest sustainable building technology that ensure resilience through peak energy demand and meets the rigorous and aggressive climate targets for a safe and healthy future.

“We believe that such investment is essential for the medium- and long-term preservation of value, and that it is our duty to invest with ESG factors as a key part of our strategies.”