AXA and MGPA appoint Skanska and start construction of £115 mln. office scheme (UK)

AXA Real Estate Investment Managers in partnership with private equity real estate investment advisory company MGPA, announced that they have appointed Skanska to commence construction on 6 Bevis Marks, the major new 170,000 ft² (15,750 m²) office development in the City of London. Development finance for the speculative office scheme has been provided by Eurohypo and the project has an expected £115 million (€138.2 mln.) total development cost.


The speculative office scheme is set for completion in September 2013.

6 Bevis Marks is located in the heart of the City of London's insurance district, and its 2013 delivery date will allow it to capitalize on the Square Mile's general lack of new build office supply. The scheme benefits from its close proximity to the major transport hub of Liverpool Street, where a new crossrail terminus will be added in 2017 to the existing rail, underground and bus stations.

Skanska has been awarded the full design and build contract for the Fletcher Priest Architects designed scheme, having previously been engaged during the demolition phase. The design includes floor plates ranging in size from 6,000 ft² to 13,000 ft², making the development suitable for a broad range of clients either on a single or multi-let basis.

Furthermore the asset is targeting a BREAAM 'Excellent' sustainability rating and will be 80% more energy efficient than the building it replaces. It also reuses over 50% of the original structural mass that is part of an extensive sustainability agenda that shortens the construction program, and helps avoid risks in the ground.

Jones Lang LaSalle is the leasing advisor to AXA Real Estate and MGPA.

Harry Badham, AXA Real Estate's UK Director of Development said: "This development, with its spectacular sky-garden on the 16th floor, will provide one of the most exciting additions to the skyline in the City's tower cluster, alongside the Gherkin and the Heron Tower. We believe Bevis Marks will provide an exceptional workspace and is being delivered at a time when new build space will be in short supply, further emphasizing our ability to source innovative assets which have the potential to create significant value for our clients."

George Graham, Country Manager, UK at MGPA said: "We are very pleased to appoint Skanska as our construction partner to assist in creating this distinctive office building that responds to the future demands of the modern workplace."

Paul Heather, Managing Director at Skanska said: "To be appointed as principal contractor for the construction phase of this innovative 170,000 ft² new build development is a challenging prospect, but one that we relish and we are confident that, alongside AXA Real Estate and MGPA, we can deliver an outstanding and highly sustainable new office property onto the market."

Source: FTI

Related News