Castleforge

As a result of broader transformations in the higher-education sector, a shift in student living is redefining the purpose-built student accommodation (PBSA) landscape. In our latest blog, we explore how rising demand from international students has fueled the rise of luxury dorms and why PBSA has become a hot spot for real estate investors. With UK universities maintaining global prestige, we examine the financial challenges facing the higher education sector and how shifts in international student policies could impact this evolving market

Our Founding Partner, Michael Kovacs sat down with Sarah Marx from PEI to discuss the rebound in the London office market and how this could lead to greater deal volumes.   You can read the full article here: https://lnkd.in/drnGeSnr

We are delighted to announce that our Isambard portfolio has received its first five-star ranking by the 2024 Global Real Estate Sustainability Benchmark. The independent GRESB assessment, which ranks investment funds on ESG work, awarded Castleforge a score of 89 out of 100 points, boosting our star-rating from four to five! This score represents a year-on-year increase in star ratings since our first GRESB report in 2021, and is a testament to our commitment to continually evaluate the environmental and social impact of our portfolio. Sustainability and responsible investment are integral to our long-term strategy, and we are dedicated to building a greener future for the communities we operate within.

We are delighted to announce that our landmark redevelopment of 1 Golden Lane will be completed in Q1 2026, with Cheyne Capital and Apollo Global Management, Inc. providing the loan facility. Our restoration project will transform this Grade II listed site, which was designed by Sidney Smith, the original architect of the Tate Britain, into high-quality, Grade-A commercial space. Its heritage features, which date back to 1896, will be retained throughout construction. You can read more about the redevelopment here: https://lnkd.in/eCM9TTPC

As office vacancy rates rise globally, understanding regional differences is more crucial than ever. In our latest blog, we explore the transatlantic divergence in office real estate performance, through the lens of two of the world’s most significant markets – New York and London. While higher interest rates and remote working policies have driven office vacancy rates above pre-pandemic levels in almost every country, we shed light on the factors behind specific geographic divergences, and what that means for investors.

Adam MacLeod recently shared his thoughts with S&P Global's Market Intelligence on where he sees opportunity and the potential for growth within the hospitality sector. "Select service hotels tend to be fairly resilient in the face of macroeconomic headwinds, and they were better equipped to handle the rising payroll costs that other sectors have faced. Extended stay hotels are also poised to grow, as the changing nature of work expands workers' options for leisure travel." Read more insights from Adam, and the full article here: PE deals in hotels, resorts and cruise lines pacing for 3rd year of decline | S&P Global Market Intelligence (spglobal.com)

In the increasingly competitive pursuit for talent, it is imperative that businesses provide high-quality working environments for employees. As the role of offices continues to evolve, best-in-class workspaces and desirable amenities are becoming increasingly key to attracting – and retaining – talented staff.   We commissioned polling of over 2,000 UK workers on their attitudes toward the office environment and the impact it can have – from job satisfaction to productivity – even influencing whether candidates accept a job offer in the first place.   Our story was featured in last week’s Times, which you can read here: https://lnkd.in/eaZBKXjH

While European tourism took longer to return to its pre-Covid heights than many expected, early reports suggest that 2024 has seen international arrivals match and even exceed figures from 2019.   The latest Castleforge blog looks at the cause for optimism amongst the European hospitality industry.

Castleforge's Founding Partner Michael Kovacs sat down with CoStar News Paul Norman to discuss the latest on our 75 London Wall Street project and the future of office real estate, including the new priority placed on amenities, flexible space, and #ESG. When asked about amenities, Michael said:   "Location is the biggest amenity. An A building in an A location is obviously best. But next in the pecking order, I think if it is an A building in a B location or a B building in an A location then the latter is less likely to be empty."   Read the full article here: https://lnkd.in/d-eSbFEN

Even as macroeconomic headwinds force investors to reconsider ESG criteria, the role of location and amenity in office development is more important than ever.   In the latest Castleforge blog, we discuss why balancing ESG considerations and financial viability promotes better outcomes for investors, occupiers, and the environment.