Ivanhoé Cambridge is redeveloping a London office asset it – acquired in December 2014 – in a new partnership with Allianz Real Estate.
The real estate subsidiary of the Caisse de dépôt et placement du Québec acquired the 150,000sqft Stonecutter Court property over six years ago from Hines Global REIT for £122m (€143m).
Ivanhoé Cambridge said it has agreed to a 50:50 joint venture with Allianz Real Estate to redevelop Stonecutter Court in Farringdon, to create a “next-generation office space in response to occupier needs”, and to deliver an environment to foster and support the talent attraction and retention strategies of its customers.
On completion of the 13-storey office scheme’s net lettable area will increase by 66%, from 150,000sqft to 250,000sqft.
Ivanhoé Cambridge said it has secured the first major pre-lease with a UK law firm, Travers Smith. Travers Smith is committing to a lease duration of 15 years on 158,000sqft. The move is scheduled for the first quarter of 2025.
Ajay Phull, the head of investments UK at Ivanhoé Cambridge, said: “We are proud to partner with Allianz Real Estate as investors that we share key values with and underscores our commitment to London as we embark on a new development at an exciting time in the evolution of the office.”
Richard Saul, the head of asset management UK at Ivanhoé Cambridge, said: “The new building will make a considerable contribution to the new workplace experience of our client and partner Travers Smith. It is testament to how a new workplace designed with wellbeing, and ESG at its heart can be a differentiator for our clients.”
Kari Pitkin, the head of business development for Europe at Allianz Real Estate, said: “We expect offices which are centrally located in key cities, are sustainably operated and which focus strongly on user well-being and experience will be the most sought-after workplaces post-pandemic.
“It is this long-term view which makes the investment in Stonecutter Court such an attractive opportunity and one which will deliver sustained value to our investors.”
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