M&GPrudential is investing 拢875m (鈧�968m) in a 905,000sqft office development in the City of London on behalf of Prudential鈥檚 拢144bn with-profits fund.
The project to develop 40 Leadenhall, dubbed Gotham City, was sold by Alberta Investment Management Corporation (AIMCO) and Real Estate.
The site has permission for the development of two towers, providing 14 and 34 storeys of predominantly office space.
The new buildings鈥� carbon emissions will be 30% below current regulations and are expected to achieve a BREEAM Excellent rating.
The deal was structured by M&GPrudential鈥檚 commercial property arm, Real Estate.
Jack Daniels, CIO at M&GPrudential, said: 鈥�40 Leadenhall is an opportunity to acquire a sizeable asset at attractive pricing with clear scope to create additional value through development.
鈥淎s one of the world鈥檚 largest commercial property investors and manager of the UK鈥檚 largest with-profits fund, we are one of the few investors able to acquire projects of this size when an attractive opportunity arises.鈥�
Tony Brown, global head of M&G Real Estate, said: 鈥淟ondon鈥檚 commercial property market currently offers good value relative to other capital cities such as Paris and Tokyo, partly due to Brexit-related uncertainty.鈥�
鈥淎s there are a limited number of developments underway in London, we expect high-quality office space like this with an emphasis on green credentials and employee well-being to be in demand from occupiers when the scheme is completed in four years.鈥�
Nick Deacon, head of European offices at Nuveen Real Estate, said: 鈥淲e have successfully delivered the business plan on behalf of our investors and, through our continued involvement as development manager, we are excited to deliver a true landmark building for London, offering future occupiers exemplary design in a sought-after location with progressive environmental credentials.鈥�
