AXA IM Alts has secured a £480m construction loan from Cale Street to help develop its billion-pound UK office development project at 50 Fenchurch Street in London.

In 2022, AXA IM Alts agreed to buy the leasehold of the 1.2-acre site, home to the historic-listed Tower of All Hallows Staining and Lambe’s Chapel Crypt buildings as part of the plan to develop a 650,000sqft office on the site alongside the two historic buildings on the site which will be retained.

AXA IM Alts said the construction loan from Cale Street, a real estate investment and finance firm, represents one of the largest development loans agreed ahead of any pre-let in the UK since the beginning of 2023.

The six-year facility will fund the delivery of the 36-storey building. Construction is expected to commence this year.

Rob Samuel, the UK head of development at AXA IM Alts, said: “The divergence in the London office market between prime well connected, sustainable, amenity-rich spaces and poorer quality buildings continues apace, with a supply-demand imbalance in favour of the former.

“Cale Street’s support for this BREEAM Outstanding development is a strong endorsement of our approach at 50 Fenchurch Street, where we will deliver a landmark, next generation office into the heavily supply constrained City of London market.”

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