LONDON - Broadgate REIT, a partnership between British Land (LON:BLND) Co PLC and GIC, has announced a joint venture with Abu Dhabi's Modon Holding to develop the 2 Finsbury Avenue project in London. The joint venture will see Modon Holding acquire a 50% stake in the 750,000 square foot development, while British Land and GIC will each retain a 25% interest through their ownership of Broadgate REIT.
The project, located at Broadgate near the heart of London's financial district, features two high-rise towers and a connecting podium that includes a winter garden and public spaces. The development is already 33% pre-let, with options that could increase occupancy to 50%. Hedge fund Citadel and market maker Citadel Securities are among the early tenants, having pre-leased 261,000 square feet of workspace with an option for an additional 121,000 square feet.
Construction of the iconic dual towers, the 36-story East Tower and the 21-story West Tower, is currently in progress, with completion projected for 2027. The building aims to meet high sustainability standards, being an all-electric, smart-enabled development to ensure operational energy efficiency.
The formation of the joint venture marks Modon Holding's first foray into the UK prime real estate market. British Land will continue to serve as the development and asset manager for the project.
H.E. Jassem Mohammed Bu Ataba Al Zaabi, Chairman of Modon Holding, emphasized the strategic significance of the partnership with Broadgate REIT in achieving international growth and diversifying Modon's development and investment portfolio.
Simon Carter, Chief Executive of British Land, expressed confidence in the new partnership and the future demand for high-quality office space in the City of London, anticipating strong rental growth due to a predicted supply-demand imbalance by 2027.
This venture exemplifies British Land's strategy to drive value through innovative joint ventures and capital recycling. The information for this report is based on a press release statement.
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