LONDON (ShareCast) - (Sharecast News) - British Land said on Friday that Broadgate REIT, which it owns equally with Singapore's GIC, has formed a new joint venture with Abu Dhabi-based holding company Modon to deliver 2 Finsbury Avenue, a 750,000 sq ft development at Broadgate.
British Land and GIC will each retain 25% ownership in the development through their ownership of Broadgate REIT, while Modon will own the rest.

British Land said the JV marks Modon's first entry into the UK prime real estate market.

"British Land will remain the development and asset manager for the project, as the parties combine their development capabilities to deliver the landmark building," it said.

The 2 Finsbury Avenue development comprises dual high-rise towers: the 36-storey East Tower and the 21-storey West Tower and a 12-storey podium which will link the towers via a 7,000 sq ft winter garden and include green spaces, leisure and a range of publicly accessible areas.

Construction of the building is already underway, with Sir Robert McAlpine appointed as the main contractor. British Land said it will be delivered "into a supply constrained market" in 2027.

The development is already In April 2024, hedge fund firm Citadel and leading global market maker Citadel Securities signed a 261,000 sq ft pre-let of workspace in the building, with options to lease up to another 121,000 sq ft. The deal means the building is already 33% pre-let to hedge fund firm Citadel.

British Land chief executive Simon Carter said: "We are delighted to be partnering with Modon on 2 Finsbury Avenue. The establishment of this new joint venture is a vote of confidence for both Broadgate and the City.

"The development is due to complete in 2027, where there is forecast to be a significant imbalance between demand and supply for new and substantially refurbished space, particularly in the City, leading to strong rental growth at the top end of the market. This transaction is another example of how we drive value through establishing innovative JV partnerships and is in line with our strategy to actively recycle capital."

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