(Updated on 15 July to add a quote from YardNine and the agents for AXA IM Alts.)
AXA Investment Managers Alts, the investment division of Axa, the French insurer, has bought a 250-year lease in 50 Fenchurch Street from The Clothworkers’ Company, and has committed to a consented 36-storey office development at the City site.
AXA, which opened the City's tallest office building, 22 Bishopsgate, 18 months ago, has 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 asset manager has leased more than one million square feet of offices at 22 Bishopsgate to tenants including Apple.
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 and has been seeking to sell the opportunity.
The plans for 50 Fenchurch Street include 32,292 square feet of public realm, with a garden terrace and winter garden that would be open to the public on the 10th floor. Capital Real Estate Partners is the development manager.
Plans also focus on improvements to two listed buildings, the Grade I listed Tower of All Hallows Staining, and the Grade II listed Lambe’s Chapel Crypt, which will be opened to the public. Also proposed is a new Clothworkers' Hall, underneath the new public realm. The Clothworkers' Company has had a home at the site for 500 years.
The City of London Corporation’s planning and transportation committee in approving the plans said it would be the first building in London to incorporate urban greening on such a large scale.
Work on the 150m high building will start in 2024 and will last until 2028. It is estimated that it will cost more than £1 billion to construct.
AXA said it will incorporate innovative vertical urban greening that is designed to mitigate air and noise pollution and improve biodiversity, enabling the scheme to target BREEAM Outstanding and net zero in operation. It added that the building will offer a flexible approach to space coupled with state-of-the-art technology and amenities, presenting the latest features aimed at enhancing occupier health and enjoyment. YardNine will act as development delivery partner.
Isabelle Scemama, global head of Axa IM Alts, said she expected a flight to quality to become even more acute over the coming years.
"50 Fenchurch presents us with another rare opportunity to secure a prime development site in the City of London, which we continue to believe is one of the most desirable office locations in the world," she said in a statement.
Clerk to The Clothworkers’ Company and chief executive of its foundation, Jocelyn Stuart-Grumbar, added: “When complete, it will be part of a new generation of buildings upholding environmentally-aware standards, provide state-of-the-art office facilities, and help improve the built environment and public space for people living and working in the Square Mile. But for us, it’s not just an exciting new building development; it is part of our long-term strategy for investing in the future of The Clothworkers’ Company and The Clothworkers’ Foundation. This scheme offers us the opportunity to unlock our assets and increase our charitable impact as we help our communities rebuild from the pandemic and secure our philanthropic legacy for the next 500 years.”
Maxwell Shand, director of YardNine, said: “Having recently completed nearby landmark office building, EightyFen, and with plans for Edenica at 100 Fetter Lane well advanced, we are very well positioned to use our experience to help deliver 50 Fenchurch Street. Occupier demand for high-quality space that aligns with their ESG and flexible working policies is only set to continue in the years ahead and we very much look forward to working with AXA IM Alts to bring this iconic development to London’s skyline.”
The Clothworkers’ Company is a livery company, similar to a medieval guild, founded in 1528 to promote the craft of cloth finishing in the City of London. The Clothworkers’ Foundation was established in 1977 to be its primary vehicle of charitable giving for The Clothworkers’ Company. Since then, it has awarded capital grants of more than £135 million.
Gerald Eve advised on planning. BH2 advised AXA.