Mitsui Fudosan UK and Stanhope have commenced building works on their prestigious 70 Mark Lane development site in the City of London, after signing a new head lease and building agreement with co-freeholders The Drapers' Company and the City Corporation.
70 Mark Lane.
Demolition work is starting immediately and is expected to be finished by April 2013.
The class-A mixed-use development is targeted for completion by October 2014, and has a total development cost of circa £110 million (approx. 135 million).
The property has planning consent for a new glass curtain-wall sixteen-storey building, offering 170,000 ft² (approx. 15,793 m²) of prime office, and large enclosed terraces on three upper floors and four complementary retail units at ground floor level.
Mitsui Fudosan and Stanhope purchased the property in November 2011 for £19.5 million (approx. €24 million) from Schroder Property Investment Management.
The island site scheme is designed by Bennetts Associates and will offer a generous reception area, high-spec and energy-efficient floor space, and magnificent views of the Tower of London and Tower Bridge. The scheme is targeting a 2011 BREEAM Excellent rating.
Construction manager of the development is Sir Robert McAlpine, with Davies Maguire + Whitby appointed as structural engineer, Grontmiij as service engineer and McGee as demolition contractor.
Hideto Yamada, Managing Director of Mitsui Fudosan (UK) Ltd, commented:
"We are very pleased to progress this development with the new agreement reached with the City of London and The Drapers' Company. We are convinced that together with Stanhope we will be able to deliver an outstanding prime City scheme that will exceed the high-quality demands of the London office market."
David Camp, Chief Executive of Stanhope, said:
"Achieving this major milestone is a great testament to Mitsui Fudosan's commitment to London. We are now committed to delivering an exceptional landmark building in to the EC3 market at an opportune time. The development will set a new benchmark for attractive and efficient space for the benefit of our future occupiers, Mitsui Fudosan, City Corporation and The Drapers."
70 Mark Lane is Mitsui's third project on site in London since it announced its expansion into the London development market in 2006 by forming a partnership with Stanhope. Mitsui Fudosan and Stanhope have recently completed their 5 Hanover Square project, a new mixed-use development in Mayfair, and are currently on site with their financial occupier-focused 130,000 sq ft scheme at 8-10 Moorgate, targeted for completion in Q1 2014.
Source: RedWood Consulting