British Land and investor GIC have formed a new jv with Abu Dhabi-based holding company Modon Holding for their development at 2 Finsbury Avenue, EC2.
The equal co-owners of the Broadgate Real Estate Investment Trust will each retain a quarter of the project, while Modon will become the majority investor with a 50% stake in the asset.
Bill O’Regan, chief executive of Modon Holding, said: “The quality and leasing potential of 2 Finsbury Avenue, together with the experience and reputation of our partners, made this a compelling entry for Modon into the London real estate market.”
Simon Carter, chief executive at British Land, described the move as a “vote of confidence for both Broadgate and the City”, with the scheme on track for delivery in 2027 amid a shortage of office supply and strong rental growth.
Modon’s foray into core City investment follows another partnership announcement with Nick Candy’s Candy Capital, announced last year. The venture will look to launch a luxury real estate business across the UAE and the Middle East, focusing on residential, commercial and hospitality developments.
The 2 Finsbury Avenue scheme, on the other hand, will deliver 750,000 sq ft across dual high-rise towers: the 36-storey East Tower and the 21-storey West Tower. The project will also feature a 12-storey podium linking the two towers via a 7,000 sq ft winter garden, as well as other publicly accessible leisure spaces.
A third of the available workspace is already pre-let after BL and GIC secured a significant 261,000 sq ft pre-let, with options for a further 121,000 sq ft, from hedge fund Citadel last year.
Knight Frank and CBRE advised BL and GIC on the deal.
Image © 3XN
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