Private equity firms have more than tripled their share of London office acquisitions over the past three years, now accounting for 13% of total transactions, according to Bloomberg sources.

According to Colliers data cited in the report, private equity managers spent £1.24bn, equivalent to approximately $1.68bn, on London offices last year. In 2022, the figure stood at £540m.

The surge reflects a strategic shift toward refurbishing ageing office stock ahead of stricter UK energy efficiency regulations due in the early 2030s. Cushman & Wakefield estimates that 76% of central London office buildings risk becoming obsolete without upgrades.

Blackstone is refurbishing Broadgate Quarter in the City of London, adding fully electric heating and cooling systems alongside new fitness facilities. Managing director James Rosenfeld said the goal is to attract “tenants who are willing to pay a premium in order to be in buildings with those characteristics.”

Brookfield has secured approval to redevelop 99 Bishopsgate by retaining the foundations and rebuilding the structure to improve energy efficiency. UK president Dan Scanlon said: “We’ve orientated this building so that, effectively, you’ve got a lot of solid elements on the south face of the building to protect against the sun in the heat of the day.”

Other investors including DWS, Hines, and Henderson Park are also targeting retrofit strategies. Hines is spending “easily a couple billion a year” across Europe on similar projects, according to its head of Europe Lars Huber.

As planning hurdles and high construction costs constrain new development, private equity-backed retrofits are reshaping London’s office skyline. The strategy offers a rare deployment opportunity in real estate at a time when broader buyout markets remain constrained by slower exits and elevated financing costs.

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