Modon Holding has announced a major development project in partnership with British Land’s Broadgate REIT and GIC.
In a significant move that marks its entry into the London real estate market, Abu Dhabi’s Modon Holding has announced a major development project in partnership with British Land’s Broadgate REIT and GIC. This joint venture aims to deliver 2 Finsbury Avenue, a 750,000 square feet development located at Broadgate in the heart of the City of London. This project is set to become an iconic addition to the London skyline, featuring dual high-rise towers connected by a winter garden and offering green spaces and leisure areas.
The 2 Finsbury Avenue development will consist of two towers: a 36-storey East Tower and a 21-storey West Tower, both connected by a 12-storey podium. The podium will feature a 7,000 square feet winter garden, providing green spaces, leisure areas, and publicly accessible facilities. This unique design is expected to make the building a standout addition to the London skyline.
One of the key highlights of the project is its focus on sustainability. The development will be an all-electric, smart-enabled building, ensuring operational energy efficiency and a net-zero carbon footprint. This aligns with the growing demand for sustainable office spaces in London and sets a new standard for environmentally friendly real estate projects.
In April 2024, Broadgate REIT secured a pre-let agreement with Citadel and Citadel Securities, leasing 261,000 square feet of workspace with options to lease an additional 121,000 square feet. This means that the building is already 33% pre-let at a minimum, and around 50% pre-let if the optional space is taken. This pre-let agreement is a significant milestone, as it ensures a strong start for the project and demonstrates market confidence in the development.
Construction of the building is already underway, with Sir Robert McAlpine appointed as the main contractor. The project is expected to be completed in 2027, delivering into a supply-constrained market. This timing is strategic, as there is forecasted to be a significant imbalance between demand and supply for new and substantially refurbished office spaces in the City of London by 2027. This imbalance is expected to drive strong rental growth, making the project a lucrative investment.
Modon Holding’s Chairman, Jassem Mohammed Bu Ataba Al Zaabi, emphasized that partnering with Broadgate REIT in the development of 2 Finsbury Avenue is a key milestone in Modon’s strategy to pursue international growth. This project aligns with Modon’s vision to diversify its business portfolio and expand its international footprint. By investing in high-quality prime real estate assets in global financial hubs, Modon aims to create long-term value and recurring income for its shareholders.
The announcement of the 2 Finsbury Avenue development by Abu Dhabi’s Modon Holding is a significant step in the company’s international growth strategy. This project not only marks Modon’s entry into the London real estate market but also sets a new standard for sustainable and innovative office spaces. With its strategic location, unique design, and focus on sustainability, 2 Finsbury Avenue is poised to become a landmark development in the City of London, contributing to the city’s vibrant office-led campus and driving strong rental growth in the market.
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