M&GPrudential will invest £875 million in 40 Leadenhall in the City of London to develop a new 905,000 square foot prime office complex.
M&GPrudential has acquired the site from AIMCO and Nuveen Real Estate, through its established central London offices platform. 40 Leadenhall Street was acquired from Nuveen Real Estate, which sought planning permission for the project in 2014 and will continue its role as development manager.
“40 Leadenhall is an opportunity to acquire a sizeable asset at attractive pricing with clear scope to create additional value through development,” said Jack Daniels, Chief Investment Officer, M&GPrudential
“London’s commercial property market currently offers good value relative to other capital cities such as Paris and Tokyo, partly due to Brexit-related uncertainty,” said Tony Brown, Global Head of M&G Real Estate.
The site has permission for the development of two towers, providing 14 and 34 storeys of predominantly office space.
The new buildings’ carbon emissions will be 30% below current regulations and are expected to achieve a BREEAM Excellent rating.
The deal was structured by M&GPrudential’s commercial property arm, M&G Real Estate, a leading financial solutions provider for global real estate investors.