8th Oct 2019 09:40
(Alliance News) - Prudential's UK and European arm M&G Prudential will invest GBP875 million in a new City of London office block, located in Leadenhall Street, its said on Monday.
M&G Prudential, which is currently being demerged from FTSE 100-listed insurer and financial services firm Prudential PLC, will develop the 905,000 square foot office complex which has planning permission to build two new towers.
"London's commercial property market currently offers good value relative to other capital cities such as Paris and Tokyo, partly due to Brexit-related uncertainty," said Tony Brown, global head of M&G Real Estate.
He continued: "As there are a limited number of developments underway in London, we expect high-quality office space like this with an emphasis on green credentials and employee well-being to be in demand from occupiers when the scheme is completed in four years."
The project was acquired from AIMCO and Nuveen Real Estate through M&G's GBP144 billion Prudential with-profits fund. Nuveen sought planning permission in 2014 for the development, which is set to have two tower blocks, one 34 storeys and the other 14, of predominantly office space.
M&G Prudential Chief Investment Officer Jack Daniels added: "40 Leadenhall is an opportunity to acquire a sizeable asset at attractive pricing with clear scope to create additional value through development.
"As one of the world's largest commercial property investors and manager of the UK's largest with-profits fund, we are one of the few investors able to acquire projects of this size when an attractive opportunity arises."
By Paul McGowan; [email protected]
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