LONDON (Jan 15): Malaysia-based Gamuda Bhd (KL:GAMUDA) and its London-based joint venture partner, real estate investor Castleforge, broke ground for 75 London Wall — a £1.2 billion (RM6.59 billion) redevelopment project — in the City of London on Wednesday.
Previously known as Winchester House and the UK headquarters of Deutsche Bank, Gamuda and Castleforge acquired the building in February 2023 in a 75:25 joint venture.
They received full planning consent to redevelop 75 London Wall in June last year, increasing the building's capacity by 40%. The construction has since begun.
Some 89% of the existing structure, including the lower-level facades, will be retained.
Upon its completion in September 2027, the 14-storey 75 London Wall will have a gross development area of 688,000 sq ft and a net lettable office space of 465,822 sq ft.
Set to become a grade-A sustainable top-tier office, 75 London Wall is targetting three sustainability performance ratings, namely BREEAM 'Outstanding', WELL Core 'Platinum' and NABERS UK 5 Star Design.
Led by Gamuda group managing director Datuk Lin Yun Lin and Castleforge founding partner Michael Kovacs, the groundbreaking event in London was also joined by head of Investor Relations for the UK government Gus Wiseman and deputy London Mayor Howard Dawber.
Over 80 attendees were present, including financiers, property agents as well as a range of property development and built environment specialists.
In a press release dated Jan 15, Lin notes that the acquisition of this building in 2023 stemmed from the “Flight to Quality” to topgrade office spaces in the real estate market.
"Multinational corporations are drawn to London, the epicentre of Britain’s economy and home to a huge proportion of its primary export — global services. This has driven a surge in demand for premium offices, linking quality workplaces to higher productivity. With a limited supply of best-in-class ESG (environmental, social, governance) spaces, rental growth remains strong, making 75 London Wall a standout investment," he said.
Kovacs, meanwhile, believes that 75 London Wall will set a new benchmark for sustainable, expertly designed office developments in London.
"In an increasingly competitive landscape, we know that 75 London Wall will stand out as a true best-in-class office development for those who want to attract the best talent in and around our city," he said.
Wiseman said that this investment will create a busy trading floor for the country's world-leading financial services industry in years to come.
"This will create jobs in construction and at full occupancy, will house over 5,000 workers. Redevelopment projects such as 75 London Wall are vital to this government's mission to achieve the fastest growth in the G7 [Group of Seven]," he added.
The event on Wednesday also witnessed the signing of a property development loan of £500 million from Cheyne Capital for the 75 London Wall redevelopment project.
It is said to be one of London's largest property development loan in recent years.
Cheyne Capital managing partner and CIO Ravi Stickney said: "Following our £150 million loan for the acquisition of 75 London Wall in 2023, we are delighted to extend our support to Gamuda and Castleforge with a £500 million loan for its redevelopment. At Cheyne, we remain committed to financing the creation of productive and sustainable assets to support the growth of the UK’s vibrant economy. We are therefore thrilled with the significant vote of confidence that Gamuda has shown in London."