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British Land and GIC Complete Mega City Prelet to US Hedge Fund

CoStar Revealed Deal in March Which Sees Citadel Take Initial 250,000 Square Feet
2 Finsbury Avenue will comprise two interlinked towers. (British Land)
2 Finsbury Avenue will comprise two interlinked towers. (British Land)
CoStar News
April 18, 2024 | 6:36 AM

British Land and Singaporean sovereign wealth fund GIC have completed an agreement with rapidly expanding US hedge fund firm Citadel and global market-maker Citadel Securities to lease over 250,000 square feet of workspace, with options to take another 130,000 square feet, at the new 2 Finsbury Avenue development at their Broadgate campus in the City of London in a landmark deal first revealed by CoStar News last month.

Broadgate’s new 750,000-square-foot development, 2 Finsbury Avenue, is now 33% prelet at a minimum, and 50% prelet if the option space is taken. The building dubbed 2FA, comprises dual high-rise towers, the 36-storey East Tower and the West Tower at 21-storeys.

BL says the towers will be "instantly recognisable landmarks, characterised by innovative triangular patterns combining a solid and glazed sawtooth-shaped facade that supports double height spaces". A 12-storey podium will link the towers via a winter garden and incorporate green spaces, leisure and publicly accessible space.

Due to be completed in 2027, 2FA will have BREEAM Outstanding, WELL Platinum, EPC A and NABERS 5-star ratings. It will be all-electric.

The joint venture has appointed Sir Robert McAlpine as the main contractor to develop 2FA as part of a longstanding framework agreement, extending a partnership that has delivered buildings including 100 Liverpool Street and 1 Broadgate at the campus close to Liverpool Street Station.

Citadel's requirement, launched by JLL on behalf of the US company last year, is a major commitment to the project and the capital. BL is on site with ground works for the major development.

Citadel, which decamped from long-term US home Chicago to Miami in 2022, has its London office in Deka's Moor House at 120 London Wall. The firm’s current footprint in London totals 150,000 square feet at 120 London Wall and 1 Fore St., according to a spokesperson.

In October 2022, Bloomberg reported that Citadel and market-maker Citadel Securities had doubled their combined headcount in Europe to roughly 750 since the start of 2019. It said that London, with about 700 staff, remains Citadel's biggest European hub but its centres in Dublin and Zurich are expanding and its office in Paris is actively searching for new talent.

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April 16, 2024 03:38 PM
The skyscraper would rank as the second tallest among existing city buildings.
Andria Cheng
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British Land and Singapore's GIC gained consent from the City of London Corporation for their proposed 38-storey office-led development at 2 Finsbury Avenue in 2021.

JLL is advising Citadel. Cushman & Wakefield and JLL advise British Land and GIC.

Simon Carter, CEO at British Land, said in a statement: “2FA is an incredibly exciting scheme that will transform the London skyline with a unique dual tower design. It will be delivered into a supply-constrained market in 2027, and this landmark prelet is further proof of the strong demand for the modern, sustainable office space at our well-connected, amenity-rich London campuses. We look forward to welcoming Citadel and Citadel Securities to their new London home at 2FA.”

Tracy Stroh, head of Europe real estate at GIC, commented: “This prelet with Citadel and Citadel Securities is testament to the strength of Broadgate’s position in the London office market and we are excited to welcome them to 2FA. We look forward to working with British Land on the development, which will enhance Broadgate’s already exciting campus.”

Gerald Beeson, chief operating officer at Citadel said: “We are excited to move into this spectacular new building at 2 Finsbury Avenue. This unparalleled building will provide the 21st century workplace experience for the exceptional talent we attract to our firm as we continue to grow our presence in London.”

Designed by architects 3XN and sustainability consultant GXN, the building will provide shared amenities including a 7,000-square-foot winter garden, shared terraces, lounges for collaboration and social interaction, and an auditorium.

British Land and GIC have been investing £1.5 billion over 10 years to repurpose Broadgate as a world-class, mixed-use destination for London. In addition to 4.5 million square feet of workspace, the campus comprises 300,000 square feet of retail, restaurants and bars, as well as four public spaces including a 1.5-acre park at Exchange Square.

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