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Fri March 29 2024

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Singapore fund invests in Broadgate expansion

2 Jan 14 British Land and GIC, Singapore’s sovereign wealth fund, have signed a joint venture partnership for the Broadgate development in London.

5 Broadgate
5 Broadgate

GIC is acquiring the 50% interest in Broadgate owned by Blackstone Real Estate Partners Europe III and Blackstone Real Estate Partners VI.

Built around Liverpool Street station, Broadgate is expected to benefit both from the opening of the new Crossrail station in 2018 and from improvements in the surrounding areas. Major investments in recent years have already significantly revitalised the estate with over 950,000 sq ft of space newly developed or refurbished in the last four years. The current development at 5 Broadgate, which is pre-let entirely to UBS, will add a further 710,000 sq ft office space, and the current £20m redevelopment of Broadgate Circle will also improve shops and restaurants on the estate.

The joint venture’s strategy will focus on broadening Broadgate's appeal from a traditional City-focused occupier base to cater for the growing creative district centred around Shoreditch to the East and the emerging tech-focused area around Old Street to the North. Plans for the next stage of investment are already underway and include a major refurbishment of 100 Liverpool Street along with a significant expansion of retail facilities around Broadgate South. Delivery of this development is expected to coincide with the opening of Crossrail.

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British Land will provide asset management for the joint venture. Broadgate Estates, a wholly owned subsidiary of British Land, will also continue to provide day to day property management and occupier services.

British Land CEO Chris Grigg said, “GIC is one of the world’s leading institutional investors in real estate and their major investment alongside us in Broadgate supports our belief in the quality and potential of the estate. This partnership provides us with the ideal platform to deliver the long-term vision for Broadgate. Our two organisations already know each other well and we look forward to working with GIC to deliver value for our respective shareholders from what is one of Central London’s premier office locations.”

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MPU
MPU

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