CarVal Investors and Orion European Real Estate Fund III have exchanged contracts with the City of London Corporation to jointly develop 100 Cheapside, with Quadrant Estates acting as development manager.
The prime site is one of the last pieces of Cheapside to be redeveloped.
100 Cheapside will be a 94,000 ft² (approx. 8,700 m²) grade-A office and retail development located in the heart of the City of London, between the Bank of England and St Paul's and has excellent transport links. The prime site is one of the last pieces of Cheapside to be redeveloped.
The joint venture partners will demolish the existing buildings and develop a new BREEAM 'Excellent' building with completion targeted for 2014. The property will offer 11,000 ft² office floor plates, targeting core City occupiers looking for grade-A space.
The development includes retail accommodation totaling 9,000 ft², which is likely to attract major brands looking for exposure to the City retail market on this busy thoroughfare.
The location will also benefit from the City Corporation's Cheapside Retail Initiative, which aims to significantly enhance the local streetscape and will reinforce Cheapside as one of the City's main shopping destinations.
Michael Cassidy, Chairman of the Corporation's Property Investment Board, said: "This deal reconfirms the City's positioning on the world stage and demonstrates that key international investors/ developers want to commit to property in London's financial center."
Robert Balick, Senior Managing Director with CarVal Investors commented: "CarVal Investors and Orion Capital are pleased to have this opportunity to develop a new building with the City Corporation on one of the best sites available in the City today.
"We are also delighted to work again with Quadrant as development manager. The new office space to be offered at 100 Cheapside should be one of the most attractive location/quality combinations in the City. It will be as prime as it gets."
Aref Lahham, Managing Director and Founding Partner of Orion Capital Managers added: "Orion Capital and CarVal Investors are excited about this project. Supply of prime new-built space in the City is constrained, and a large number of leases expire in the next few years. 100 Cheapside will appeal to a wide array of tenants in a market that is clearly hampered by the lack of development financing."
Tristram Gethin, Managing Director and Founding Partner of Quadrant Estates said: "This is an incredibly important site at the heart of the City. After the 230,000 ft² Moorgate Exchange, now under construction, this is the second major City development we have secured in the last 12 months. This success reflects our focus on prime Central London real estate opportunities."
CBRE acted for the developer and BNP Paribas acted for the City of London Corporation.
Source: Alywin Communications