By Wasana Nadeeshani Sellahewa
(Commonwealth)_ AXA IM Alts, a prominent global leader in alternative investments managing €183 billion in assets, has successfully secured a substantial £480 million construction loan from Cale Street, a real estate investment and finance firm. This financial backing is earmarked for the development of a cutting-edge office building spanning 650,000 square feet at 50 Fenchurch Street. Notably, this transaction stands out as one of the largest development loans agreed upon before any pre-let in the UK since the beginning of 2023.
The journey towards this milestone began with AXA IM Alts’ acquisition of the site in 2022 on behalf of its clients. The £480 million construction loan, extending over six years, will finance the realization of a 36-storey tower at 50 Fenchurch Street. Progress in demolition and enabling works has set the stage for construction to commence this year, following the selection of a main contractor. YardNine has taken on the role of delivery partner for the ambitious project.
Designed with a keen understanding of evolving occupier needs, the building will feature flexible grade-A office space infused with state-of-the-art technology. More than just a workspace, 50 Fenchurch Street aims to enhance occupiers’ experience and foster the health and well-being of its occupants, ultimately boosting productivity. The development includes the preservation and relocation of two historically significant listed buildings, the Tower of All Hallows Staining and Lambe’s Chapel Crypt, to form an integral part of an expansive new public realm.
Sustainability and well-being take center stage in the development, with abundant vertical urban greening enhancing the workplace environment, promoting biodiversity, and improving air quality. Operating entirely on electric energy and consuming 50% less energy than a typical office tower, the project aims for BREEAM Outstanding and net-zero operation. It also adopts innovative practices to minimize embodied carbon during the construction phase.
Occupiers and visitors will have access to over 1.5 acres of outdoor space and terraces, featuring balconies on the majority of levels. The 10th floor boasts public gardens with stunning views overlooking the River Thames, the Tower of London, and Tower Bridge. The prime location enjoys exceptional connectivity, served by eight tube and mainline stations within an eight-minute walk from the site.
Rob Samuel, UK Head of Development at AXA IM Alts, expressed confidence in the project, noting the market’s growing divergence between prime, well-connected, sustainable spaces and lower-quality buildings. He emphasized that Cale Street’s support for this BREEAM Outstanding development is a strong endorsement of AXA IM Alts’ approach at 50 Fenchurch Street. The aim is to deliver a landmark, next-generation office to the heavily supply-constrained City of London market.
Capitalizing on its extensive global development expertise, AXA IM Alts strategically incorporates insights gained from its successful involvement with the nearby 22 Bishopsgate project. Notably, over 1.2 million square feet of space has already been leased in this adjacent development, providing valuable experience that informs AXA IM Alts’ approach to its latest venture. This undertaking serves as a resounding testament to AXA IM Alts’ unwavering commitment to addressing the burgeoning demand for top-tier, ESG-optimized workspaces situated in the vibrant heart of the City of London.
With a remarkable track record extending over two decades, AXA IM Alts has spearheaded more than 340 development projects across Europe since the year 2000. This extensive portfolio, valued at over €22 billion, underscores the depth of AXA IM Alts’ experience and its enduring impact on the European real estate market. The company’s continuous commitment to excellence and innovation positions it as a driving force in the evolution of modern work environments.
