AXA IM Alts, the global alternative investments group behind the City of London's tallest office tower at 22 Bishopsgate, has appointed Multiplex to begin construction at its 650,000-square-foot Fifty Fenchurch Street workplace development in the City.
The appointment follows the completion of the enabling works in May by Keltbray, which will also carry out piling and excavation. As a result, construction of the development will start this summer and is expected to complete in 2028.
In addition to Multiplex, AXA IM Alts, with YardNine as development delivery partner, has assembled a team to construct a 36-storey building. Eric Parry Architects and Adamson Associates are working alongside Arup leading the engineering design.
Fifty Fenchurch will include landscaped gardens at ground and level 10 and will have 40 occupier terraces that will bring over 70 different species of plant life to the site. The building will integrate nature with smart technology.
The development also includes the retention of the medieval tower of All Hallows Staining and Lambe’s Chapel Crypt, which will form part of the public realm alongside a subterranean Livery Hall for The Clothworkers’ Company.
The building will target BREEAM Outstanding and net zero in operation.
Occupying over an acre, Fifty Fenchurch sits on the southern edge of the City’s tower cluster.
Rob Samuel, UK head of development at AXA IM Alts, said in a statement: “Commencing construction with Multiplex marks a significant milestone in the realisation of what we believe is a one-of-a-kind development in the City of London. In addition to helping satisfy the significant demand for the first class and sustainable office accommodation that is a must have for occupiers, Fifty Fenchurch will bring extensive urban greening and landscaped gardens to the Square Mile.”
AXA IM Alts secured a £480 million construction loan from Cale Street to fund the development of the builing in March.
The transaction is one of the largest development loans agreed before any space was prelet in the UK since the beginning of 2023, said the investment division of French insurer Axa.
AXA Investment Managers Alts, the investment division of Axa, the French insurer, bought a 250-year lease in 50 Fenchurch Street from The Clothworkers’ Company, committed to a consented 36-storey office development at the City site, in July 2022.
AXA, which opened the City's tallest office building, 22 Bishopsgate, 18 months prior to that, bought the development opportunity in a clear commitment to the London office market. It bought on behalf of clients through AXA IM Alts’ Real Assets platform.
The Clothworkers Company gained consent from the City Corporation for Eric Parry Architects-designed plans for a 670,000 square-feet 36-storey offices tower on the site of its historic livery hall in May 2020.
JLL and BH2 Newmark are leasing agents.
Mark Stansfield, senior director of UK market analytics, CoStar, said: “Net absorption, or the change in occupied stock, has turned strongly positive in the City Core over the past 12 months, having been negative in the previous year. The 1.7 million square feet of additional occupancy has been driven exclusively by the area’s better-quality, 4 and 5 Star-rated office buildings as firms continue to upgrade offices even as some take less space overall. Interestingly, the City Core is now outperforming the City Fringe, which has seen demand losses totalling nearly 1 million square feet over the past 12 months. This contrasts with the City Fringe’s strong outperformance in prior years and is linked to the drop-off in tech demand. Healthy demand in the City Core has seen office vacancy remain stable at 11% despite a wave of new completions in recent quarters.”