Global investment giant AXA IM Alts has secured a £480 mln (€564 mln) development loan from Cale Street for its net-zero London office scheme at 50 Fenchurch Street.
The firm said the financing deal 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 60,000 m2, 36-storey building, on which is construction is expected to commence this year, following the appointment of a main contractor. YardNine is acting as delivery partner for the project.
AXA IM Alts acquired the 50 Fenchurch Street site on behalf of clients in 2022. The development project includes the retention of two historic listed buildings, the Tower of All Hallows Staining and Lambe’s Chapel Crypt, which will be relocated within the scheme to form part of an extensive new public realm.
The scheme will be designed to use all-electric energy and consume 50% less energy than a typical office tower. It is targeting BREEAM Outstanding and net zero in operation.
Rob Samuel, UK Head of Development at AXA IM Alts, commented: ‘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.’
AXA IM Alts has delivered more than 340 development projects in Europe since 2000, with a total value of over €22 bn.
