M&G Prudential backs London with £875m investment in City skyscraper
M&G Prudential has backed London with a multimillion pound investment in a new Square Mile skyscraper development.
The firm has invested £875m to buy and develop the 40 Leadenhall site – nicknamed Gotham City – which is expected to be constructed in the next four years.
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M&G Prudential bought the project from Aimco and Nuveen Real Estate, which will continue to as development manager, through its £144bn Prudential with-profits fund.
Brexit uncertainty means London real estate currently presents better value for money than other global cities.
Tony Brown, global head of M&G Real Estate, said: “London’s commercial property market currently offers good value relative to other capital cities such as Paris and Tokyo, partly due to Brexit-related uncertainty.
“As 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.”
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The 14 and 34-storey towers will be predominantly used for office space, with carbon emissions targets set 30 per cent below current regulations.
M&G Prudential chief investment officer Jack Daniels said: “As one of the world’s largest commercial property investors and manager of the UK’s largest with-profits fund, we are one of the few investors able to acquire projects of this size when an attractive opportunity arises.”
Main image credit: M&G Prudential