24th Jan 2025 12:21
(Alliance News) - British Land Co PLC on Friday said Broadgate REIT, its joint venture with GIC, has partnered with Abu Dhabi-based developer Modon Holding PSC on a new project in the City of London.
British Land, a London-based real estate developer, co-owns Jersey-domiciled investment firm Broadgate REIT with GIC, Singapore's national sovereign wealth fund. The co-owners have been developing a large-scale office and retail campus known as Broadgate, adjacent to London's Liverpool Street Station.
The new joint venture will be located nearby at 2 Finsbury Avenue. It marks Modon's debut in UK prime real estate, promising "dual high-rise towers" of 36 and 21 storeys each, linked by a 12-storey podium to include public green space.
Modon has a 50% stake in the deal, with British Land and GIC splitting the remainder down the middle.
British Land said the site is already 33% pre-let to Miami-based hedge fund manager Citadel Securities LLC. Citadel will establish its new European headquarters in one of the towers as the firm expands its London presence.
Hertfordshire, England-based contractor Sir Robert McAlpine Ltd has already started construction at 2 Finsbury Avenue, British Land said.
"The establishment of this new joint venture is a vote of confidence for both Broadgate and the City," said British Land Chief Executive Simon Carter.
"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."
British Land shares were up 0.8% at 355.20 pence each early Friday afternoon in London.
By Holly Munks, Alliance News reporter
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