PIC forward funds £105m net-zero carbon office

Written by Adam Cadle

29/09/2022

PIC has agreed to invest £105m to forward fund a new 130,000sq ft net-zero in operation office to be let to the Government Property Agency (GPA) for 25 years.

The new site, which underlines the government’s commitment to levelling up, will house approximately 2,500 civil servants, including over 700 roles which will be relocated from London to Manchester as part of the Places for Growth initiative. The move of civil service roles to Manchester is expected by the government to generate £31m in economic benefits for the city, down to increased footfall and spending from staff.

James Agar, head of long income at PIC, said: “We are delighted to have concluded this market leading transaction during a period of such turbulence in both financial and construction markets. This investment provides us with secure, long dated and index linked cashflows which are perfectly aligned to serving PIC’s purpose, which is to pay the pensions of our current and future policyholders over coming decades.

“Government let commercial property assets have been an area of specific focus for PIC and we are pleased to make this long-term commitment to supporting the modernisation of the GPA estate. We expect First Street to be the first development in an expanding partnership with the GPA as it looks to deliver its strategic roll out for 2025 and beyond.”

Related Articles