BROADGATE REIT ANNOUNCES
JOINT VENTURE WITH MODON TO DELIVER WORLD-CLASS DEVELOPMENT AT 2
FINSBURY AVENUE
24 January 2025
Broadgate REIT, owned equally by
British Land and GIC, announces the formation of a new Joint
Venture ('JV') with Abu Dhabi based holding company, Modon Holding
('Modon'), to deliver 2 Finsbury Avenue, a 750,000 sq ft
world-class development at Broadgate. British Land and GIC will
each retain 25% ownership in 2 Finsbury Avenue through their
ownership of Broadgate REIT, while Modon will own a 50% stake in
the asset.
The JV marks Modon's first entry
into the UK prime real estate market. British Land will remain the
development and asset manager for the project, as the parties
combine their development capabilities to deliver the landmark
building.
The 2 Finsbury Avenue development is
located at Broadgate, London, a vibrant office-led campus in the
heart of the City of London. 2 Finsbury Avenue will be an iconic
addition to the London skyline. Uniquely for London, it comprises
dual high-rise towers: the 36-storey East Tower and the 21-storey
West Tower and a 12-storey podium which will link the towers via a
7,000 sq ft winter garden and include green spaces, leisure and a
range of publicly accessible areas.
Construction of the building is
already underway, with Sir Robert McAlpine appointed as the main
contractor, and will be delivered into a supply constrained market
in 2027. In April 2024, hedge fund firm Citadel and leading global
market maker Citadel Securities signed a 261,000 sq ft pre-let of
workspace in the building, with options to lease up to another
121,000 sq ft. The deal means the building is already 33% pre-let
at a minimum, and c.50% pre-let if the option space is taken,
setting a record rent for the City.
The development strategy for 2
Finsbury Avenue has sustainability at its core and once completed,
the building will be an all-electric and smart-enabled development
ensuring operational energy efficiency.
H.E.
Jassem Mohammed Bu Ataba Al Zaabi, Chairman of Modon
Holding, said: "Partnering with
Broadgate REIT in the development of 2 Finsbury Avenue, is a key
milestone in Modon Holding's strategy to pursue international
growth, supporting our strategy to diversify our development and
investment business outside of the UAE and another step towards
creating long term sustainable value for our
shareholders."
Bill
O'Regan, Group CEO of Modon Holding,
added: "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. We are delighted to add this asset to our portfolio and
look forward to working with them to deliver the asset in
2027."
Simon Carter, Chief Executive, British Land,
said: "We are delighted to be
partnering with Modon on 2 Finsbury Avenue. The establishment of
this new Joint Venture is a vote of confidence for both Broadgate
and the City. The development is due to complete in 2027, where
there is forecast to be a significant imbalance between demand and
supply for new and substantially refurbished space, particularly in
the City, leading to strong rental growth at the top end of the
market. This transaction is another example of how we drive value
through establishing innovative JV partnerships and is in line with
our strategy to actively recycle capital."
-ENDS-
Investors
Jonty McNuff, British Land
07931
684 272
Media
Charlotte Whitley, British
Land
07887
802 535
About
Modon
Modon develops vibrant communities,
unique hospitality and lifestyle experiences, and world-class
sports facilities. Based in Abu Dhabi with an international vision,
Modon Holding is a Private Joint Stock company listed on the ADX
Growth Market with ADQ and the IHC Group being our majority
shareholders. Through a diversified business portfolio in the UAE,
we are engaged in strategic investment and innovation on an
unrivalled scale, shaping future smart living. Our goal is to
deliver long-term, sustainable value, laying the foundations for
intelligent, connected living.
About
Broadgate
Broadgate REIT is a 50:50
joint venture between British Land and GIC. The joint venture owns
Broadgate, a 32-acre campus located in the heart of the City of
London. Over recent years, British Land and GIC have transformed
Broadgate into a world-class campus with a diverse business
community. In addition to 4.5 million sq ft of best-in-class
workspace, the campus comprises 300,000 sq ft of retail,
restaurants and bars, as well as four public spaces including a
1.5-acre park at Exchange Square.
About British
Land
British Land is a UK commercial
property company focused on real estate sectors with the strongest
operational fundamentals: London campuses, retail parks, and London
urban logistics. We own or manage a portfolio valued at £13.6bn
(British Land share: £8.9bn) as at 30 September 2024.
Our purpose is to create and manage
Places People Prefer - outstanding places that deliver positive
outcomes for all our stakeholders on a long term, sustainable
basis. We do this by leveraging our best in class platform and
proven expertise in development, repositioning and active asset
management.
We have both a responsibility and an
opportunity to manage our business in an environmentally and
socially responsible manner. Our approach to sustainability is
focused on three pillars: Greener Spaces, Thriving Places and
Responsible Choices.
Read more about us at
www.britishland.com.
