AXA IM Alts has secured a €561.6m construction loan from Cale Street to fund the development of its 60,000m2 next-generation office building at 50 Fenchurch Street. This transaction represents one of the largest development loans agreed ahead of any pre-let in the UK since the beginning of 2023.
Following the acquisition of the site by AXA IM Alts on behalf of clients in 2022, the 6-year facility will fund the delivery of the 36-storey building. With demolition and enabling works substantially progressed, construction is expected to commence this year, following the appointment of a main contractor. YardNine is acting as a delivery partner for the project.
50 Fenchurch Street is a state-of-the-art development project that will offer flexible grade-A office space, advanced technology, and first-rate facilities. The project includes the retention of two historic listed buildings, and sustainability and wellbeing are a key focus for the building. Occupiers and visitors will enjoy over 1.5 acres of outdoor space and terraces, with public gardens on Level 10 providing river views over the Tower of London and Tower Bridge. The building is conveniently located, being served by eight tube and mainline stations within an eight-minute walk from the site.
Rob Samuel, UK Head of Development at AXA IM Alts, commented: “The divergence in the London office market between prime well-connected, sustainable, amenity-rich spaces and poorer quality buildings continues apace, with a supply-demand imbalance in favour of the former. Cale Street’s support for this BREEAM Outstanding development is a strong endorsement of our approach at 50 Fenchurch Street, where we will deliver a landmark, next-generation office into the heavily supply constrained City of London market.”
Image provided by FTI Consulting.
Europe Real Estate — an overview of real estate developments in European countries.
