Canadian investor Ivanhoé Cambridge said it is beginning the redevelopment of Stonecutter Court office building in Farringdon, London.
In addition, Ivanhoé Cambridge will be partnering with Allianz Real Estate, acting on behalf of Allianz, in a new 50:50 joint venture.
Stonecutter Court is situated in one of the most desirable and vibrant areas in London. The site location, in Farringdon, bordering the City of London, offers easy access to global institutions, prime-residential areas, internationally recognised amenities ranging from retail, restaurant, hotel and leisure – all within walking distance – providing a lively and dynamic setting.
Ivanhoé Cambridge has secured the first major pre-lease with a leading UK law firm, Travers Smith. Travers Smith is committing to a lease duration of 15 years on 158,000 square feet. The move is scheduled for the first quarter of 2025.
Ivanhoé Cambridge said the development is in line with the joint venture’s long-term strategy of acquiring and developing assets in prime locations.
On completion of the building, the net lettable area will increase by c.66%, from 150,000 sq.ft. to 250,000 sq.ft. Stonecutter Court will consist of a 13-story office scheme arranged over two basement levels, ground, podium, and include four roof terraces. The development offers amenity-rich features including four retail units and the existing courtyard space will be re-purposed for public access. The development will benefit from state-of-the-art energy conservation methods including a highly efficient heating system, enhanced insulation, and solar panels covering 2,700 square feet.
In line with Ivanhoé Cambridge’s commitment to reduce carbon emissions, the Stonecutter Court redevelopment will set ambitious ESG targets and work with globally recognised organisations to achieve BREEAM New Construction 2018 Excellent and WELL Core and Shell Gold certifications.
”Both Ivanhoé Cambridge and Allianz Real Estate share a mutual vision of the importance of carbon reduction and are members of the Net Zero Asset Owner Alliance. Stonecutter Court notably aims to achieve a carbon reduction pathway aligned with the science-based Paris Climate Agreement 1.5°C scenario,” said the company in apress release.
Ajay Phull, Head of Investments UK at Ivanhoé Cambridge, said: “The area around Stonecutter Court has seen a complete transformation over the past decade and once redeveloped, Stonecutter Court will provide a cutting-edge, flexible and ‘green’ space for all local stakeholders. We are proud to partner with Allianz Real Estate as investors that we share key values with and underscores our commitment to London as we embark on a new development at an exciting time in the evolution of the office. London is a global gateway city that has remained resilient and responded positively to change, and we see a great opportunity to continue to invest in London with long-term conviction.”
Richard Saul, Head of Asset Management UK at Ivanhoé Cambridge, added: “Completing an off-plan pre-let during a pandemic is a massive achievement and speaks to the quality of the product. The new building will make a considerable contribution to the new workplace experience of our client and partner Travers Smith. It is testament to how a new workplace designed with wellbeing, and ESG at its heart can be a differentiator for our clients.”
Kari Pitkin, Head of Business Development for Europe at Allianz Real Estate, commented: “We expect offices which are centrally located in key cities, are sustainably operated and which focus strongly on user well-being and experience will be the most sought-after workplaces post-pandemic. It is this long-term view which makes the investment in Stonecutter Court such an attractive opportunity and one which will deliver sustained value to our investors.”
Edmund Reed, Managing Partner at Travers Smith, added: “We are delighted to have secured Stonecutter Court as our new office space. The move to this landmark building shows our confidence in the future – an opportunity to build on our success and allow for growth in the coming years. With its modern, sustainable and inclusive design, this building reflects the vision for our business and will provide an exciting and vibrant working environment which will appeal to both our people and our clients.”
In this transaction, Ivanhoé Cambridge was advised by CMS on legal matters, BH2 & Knight Frank on leasing, CO-RE on development matters, and Eastdil Secured on the joint venture.