Abu Dhabi-based Modon Holding PSC has bought a 50% stake of the 2 Finsbury Avenue project from Broadgate REIT. The London skyscraper that will house Citadel and Citadel Securities when completed in 2027.
(Jan 24): Abu Dhabi-based Modon Holding PSC has bought a stake in the London skyscraper that will house Ken Griffin’s Citadel and Citadel Securities once complete.
The company purchased 50% of the 2 Finsbury Avenue project from Broadgate REIT, which is itself a venture between British Land Co and Singapore’s GIC Pte, according to a statement on Friday. The deal for the 750,000 sq ft (69,677 sq m) project on the City of London’s northern fringe is Modon’s first in the UK real estate market, it said. Financial terms were not disclosed.
Soaring construction costs, falling office values and uncertain demand for space in the aftermath of the pandemic caused many developers to pause plans for new projects. That’s created the conditions for a supply squeeze as big companies compete for the limited supply of fancy new space with top green credentials and plentiful amenities, causing rents to rise and luring global investors.
“Partnering with Broadgate REIT in the development of 2 Finsbury Avenue, is a key milestone in Modon Holding’s strategy to pursue international growth, supporting our strategy to diversify our development and investment business outside of the UAE,” Modon chairman Jassem Mohammed Bu Ataba Al Zaabi said.
British Land has been raising capital to invest in new projects by selling off completed and leased projects to long-term investors. The 2 Finsbury Avenue project, which replaces an office complex previously occupied by UBS Group AG, is currently under construction but a lease with Citadel covering at least a third and as much as half of the space has substantially decreased its risk.
“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,” British Land chief executive officer Simon Carter said.
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