Broadgate REIT, jointly owned by British Land and GIC, has announced a significant joint venture (JV) with Abu Dhabi-based Modon Holding to deliver 2 Finsbury Avenue, a 750,000 sq ft world-class development located at Broadgate, London. Under the agreement, British Land and GIC will each retain a 25% stake through Broadgate REIT, while Modon will own a 50% stake in the asset.
Modon’s First Foray into UK Real Estate
This marks Modon Holding’s debut in the UK prime real estate market. British Land will serve as the development and asset manager for the project, leveraging the combined expertise of all parties to deliver this landmark building.
H.E. Jassem Mohammed Bu Ataba Al Zaabi, Chairman of Modon Holding, described the partnership as a pivotal step in Modon’s international growth strategy, diversifying its development and investment portfolio beyond the UAE.
An Iconic Addition to London’s Skyline
2 Finsbury Avenue, situated within the Broadgate campus in the heart of London’s financial district, will feature dual high-rise towers: a 36-storey East Tower and a 21-storey West Tower. A 12-storey podium will connect the towers, incorporating a 7,000 sq ft winter garden, green spaces, and a range of publicly accessible areas, making it a vibrant addition to London’s skyline.
Construction and Leasing Milestones
Construction is already underway with Sir Robert McAlpine as the main contractor, targeting completion in 2027. In April 2024, hedge fund Citadel and global market maker Citadel Securities pre-leased 261,000 sq ft of workspace, with options for an additional 121,000 sq ft. This deal ensures the development is at least 33% pre-let, with the potential to reach approximately 50%, setting record rents for the City.
Sustainability and Innovation at the Core
The development emphasizes sustainability, being fully electric and smart-enabled to ensure operational energy efficiency.
Strategic Importance
Simon Carter, Chief Executive of British Land, highlighted the JV as a testament to Broadgate’s appeal and confidence in the City of London’s future. "With the forecasted imbalance between demand and supply for high-quality office space in 2027, this transaction underscores our strategy to drive value through innovative partnerships and actively recycle capital," Carter said.
Modon Holding’s Group CEO, Bill O’Regan, added: “The quality and leasing potential of 2 Finsbury Avenue, combined with the expertise of our partners, made this an ideal entry into the London real estate market. We are excited to deliver this flagship project in 2027.”
The joint venture reflects strong investor confidence in the London real estate market, particularly in prime office developments, and signals a new chapter for Modon Holding on the global stage.