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 Colliers data, private equity managers spent £1.24bn, equivalent to approximately $1.68bn, on London offices last year, up from £540m in 2022.

This 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.

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.