British Land and GIC have entered into a joint venture with Abu Dhabi-based Modon Holding to deliver the 750,000 sq ft 2 Finsbury Avenue development at Broadgate in London.
British Land and GIC will each retain 25% ownership in 2 Finsbury Avenue through their ownership of the JV vehicle Broadgate REIT, while Modon will own a 50% stake in the asset. 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, which comprises dual high-rise towers: the 36-storey East Tower and the 21-storey West Tower, plus a 12-storey podium which will link the towers via a 7,000 sq ft winter garden.
Construction of the building is already underway, with Sir Robert McAlpine appointed as the main contractor. The development is expected to reach completion in 2027.
HE Jassem Mohammed Bu Ataba Al Zaabi, chairman of Modon Holding, said: “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 and another step towards creating long term sustainable value for our shareholders.”
Bill O’Regan, group CEO of Modon Holding, added: “The quality and leasing potential of 2 Finsbury Avenue together with the experience and reputation of our partners, made this a compelling entry for Modon into the London real estate market. We are delighted to add this asset to our portfolio and look forward to working with them to deliver the asset in 2027.”
Simon Carter, chief executive of British Land, 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.”
