REG - British Land Co PLC - Formation of 2 Finsbury Avenue Joint Venture

British LandAnnouncement

24/01/2025 11:30

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250124:nRSX6417Ua&default-theme=true

RNS Number : 6417U  British Land Co PLC  24 January 2025

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 (http://www.britishland.com) .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  JVEFLFSILDISFIE