MGPA, the independent private equity real estate investment advisory company, and CarVal Investors, in conjunction with Quadrant, have announced that on behalf of MGPA Europe Fund III, and CVI GVF (Lux) Master respectively, they have appointed Skanska to commence construction of the £140 million (175 million) redevelopment of the former Telephone Exchange at 72 Fore Street.
The £57 million construction contract will see the Skanska team take responsibility for the design and build of the 220,000 ft² (approx 20,438 m²) scheme. It comprises 11-story office accommodation, featuring a variety of floor plates that range from 7,900 ft² (approx 733 m²) to 24,600 ft² (approx 2,285 m²) and with associated roof terraces at the six highest levels. The first and second floors will accommodate trading. The aim is to achieve both BREEAM excellent and LEED Platinum ratings for the building.
George Graham, Country Manager, UK at MGPA commented: "We acquired this site to take advantage of the current window of opportunity for office development in the City of London given the demand/supply imbalance. Now that we have our construction partner Skanska on board work will start on site immediately and we are aiming for completion in early 2014."
Robert Balick, Senior Managing Director of CarVal Investors said: "The UK market is important to us and the City in particular. New quality grade-A office with flexible and efficient floor plates is in short supply in the City and we will deliver in time to take advantage of that."
Paul Heather, Managing Director of Skanska's Building London & South East Operating Unit concluded: "To be appointed as principal contractor for the construction phase of this development in the heart of the City is a fantastic opportunity and challenge. There is added complexity due to the proximity of Moorgate Station and we will work closely with London Underground and Crossrail to address this."
Tristram Gethin, Director at Quadrant added: "Moorgate Exchange is in an attractive location close to three major transportation hubs and the future Crossrail station. It's one of several developments that we are currently active on in the Square Mile."
MGPA, CarVal Investors and Quadrant jointly designed the strategy for the fully funded £140 million development in July 2011. The MGPA development team is the development manager, with Quadrant development consultant. The architect is HKR and joint leasing advisors are CBRE and BNP Paribas.
Source: Sidecar Communications