Broadgate job being built by Skanska at cost of £273m
British Land said it expects to bring in another partner to help fund its deal to build a new City office in Broadgate at 1 Appold Street.
The delayed £273m scheme being built by Skanska was given the green light to get going earlier this year after the developer signed up law firm Herbert Smith Freehills Kramer as the project’s anchor tenant.
The job is due to finish by spring 2029 and in its annual results this morning, British Land said it “would expect to bring in an additional partner to further de-risk the scheme and accelerate returns, like at our 2 Finsbury Avenue development”.
British Land’s share of the 1 Appold Street scheme in 50% with the remainder held by Singaporean sovereign wealth fund GIC.
Its stake in 2 Finsbury Avenue is 25% along with a further 25% held by GIC and the remainder held by Abu Dhabi investor Modon.
The 1 Appold Street job is one of the last major schemes in the ongoing development of the Broadgate Campus.
Designed by Piercy & Company, the developer’s plans will involve retaining 75% of the existing 1980s office building, stripping it back to its core and extending it upwards by five floors to make 13 storeys.
As part of the deal with Herbert Smith Freehills Kramer – which is currently based at nearby Exchange Square, off Bishopsgate – the firm will have its own entrance known as 8 Exchange Square.
Meanwhile, British Land said it expects Bam’s revamp of the Broadgate Tower to be completed by spring next year as well as Sir Robert McAlpine’s job at 2 Finsbury Avenue.
British Land said “market conditions remain favourable, with limited availability of high-quality space and sustained occupier demand” and outgoing chief executive Simon Carter added: “We are benefiting from our leading positions in campuses and retail parks, where demand is growing and supply remains constrained. Our offer is clearly resonating with customers: we have around a 5% share of the London office market but accounted for 15% of reported leasing activity last year, rising to 33% in the fourth quarter.
“While the geopolitical and interest rate backdrop has become more uncertain, the occupational fundamentals underpinning our portfolio are as strong as I have seen them. Central London office net take-up is at its highest level in 20 years and our retail parks are 99% occupied.”
In its results, the firm gave no update on the progress of its Euston Tower scheme. The job is due to be carried out by Mace and in March cut the amount of space it had planned to give over to life sciences at the 568,000sq ft scheme.
John F Hunt has been awarded a £30m deal to carry out the structural demolition and deconstruction job at the 1970s-built tower.
The work is expected to last up to two years and will see Hunt deconstruct the 36-storey building apart from the reinforced concrete core – which will be kept at its existing 126m height.
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