Stanhope and the Woolgate Exchange Unit Trust have confirmed that Legal & General has signed a 15-year lease to occupy 60% of the Woolgate building, a deal that will see the financial services giant relocate its HQ from One Coleman Street.
Cathay Life Insurance Company, the largest life insurer in Taiwan, is the ultimate beneficial owner of the Woolgate Exchange Unit Trust, and the major redevelopment of Woolgate represents the first project of its kind by a Taiwanese insurance company in the UK.
L&G will take a total of 190,000 square feet in the headquarters building across levels 4 to 8, with its own dedicated entrance and reception area off Coleman Street.
The space will also offer entertainment space for clients, 15,000 square feet of private terraces for relaxation and collaboration and use of a 4,000-square-foot communal roof terrace. The new communal rooftop "pavilion" events space offers views of St Paul's Cathedral and City tower cluster.
The refurbished building will provide a total of 320,000 square feet of offices, as well as 8,000 square feet of space for food and beverage operators, and ground floor public realm on Basinghall Street and Coleman Street. The landscaped outdoor spaces will provide urban greening, biodiversity and public realm for both the occupiers and the local community.
Woolgate is set to be net zero in construction and is on track to achieve its targets of 4.5-star NABERS rating and BREEAM Excellent certification.
L&G said the strong sustainability credentials align with its target to become net zero in its operational carbon footprint by 2030.
L&G’s move is scheduled for 2027, following completion of fit-out.
The deal leaves 136,000 square feet of the building left to let.
Cathay Life Insurance Company bought the 351,263-square-feet office at Woolgate Exchange from TPG Capital (which had a circa 5% stake) and Ivanhoé Cambridge (a circa 95% stake) in 2014 for £320 million, reflecting a net initial yield of 5.1%. Stanhope was enlisted to oversee a Stiff + Trevillion revamp in 2020.
António Simões, chief executive of Legal & General, said in a statement: “Woolgate will offer our people a modern and enhanced working environment, helping to further our ambition for a better-connected L&G, with increased collaboration and employee wellbeing offerings. Woolgate is well-aligned with our commitment to the net zero transition, coming with strong sustainability credentials and will support our commitment to a net zero operational carbon footprint by 2030. We look forward to continuing to work with Stanhope and WEUT to design the most appropriate fit-out for our people, ready for our arrival in a few years’ time.”
David Camp, chief executive of Stanhope, said: “We are delighted to have signed this deal with L&G and to have found an occupier aligned with our vision for Woolgate as a transformative space that combines sustainability, innovation, and functionality. We look forward to welcoming L&G to the building and continuing our mission to shape the future of workspaces.”
The letting, which has been expected since earlier this year, will be a clear lift for the London market as September gets under say.
CoStar's head of UK analytics Mark Stansfield said: "The larger end of the leasing market is picking up after a quiet period. Legal & General's 190,000-square-foot prelet at Woolgate Exchange is London's fifth new letting over 100,000 square feet since April, up from zero in the opening three months of the year.
"Big companies are showing increasing willingness to commit to office requirements amid an improving economic outlook and with further interest rate cuts on the horizon. They continue to target new or refurbished buildings with the highest environmental credentials when doing so, with roof terraces increasingly prized. The availability of the best-quality, 5 Star-rated office space in London has fallen to a three-and-a-half year low in recent weeks."
Savills, JLL and BCLP acted on behalf of Stanhope and WEUT. JLL and Simmons & Simmons acted on behalf of L&G.