Modon forms JV to Develop UK’s 2 Finsbury Avenue

Modon Holding, an Abu Dhabi-based holding company, has formed a new 50:50 Joint Venture (JV) with Broadgate REIT Limited, a REIT owned by the UK-based FTSE 100 listed property developer British Land and GIC, a leading global investor, to deliver 2 Finsbury Avenue, a 750,000 sq. ft. world-class development at Broadgate in London.

Modon will own a 50% stake, while British Land and GIC will each retain 25% ownership in the asset going forward through their ownership of Broadgate REIT.

The JV marks Modon’s first entry into London’s prime real estate market. British Land will remain the development and asset manager for the project, as the parties combine their development capabilities to deliver the landmark building.

The 2 Finsbury Avenue development is a vibrant office-led campus in the heart of the City of London. 2 Finsbury Avenue will be an iconic addition to the London skyline. Uniquely for London, it comprises dual high-rise towers: the 36-storey East Tower and the 21-storey West Tower and a 12-storey podium which will link the towers via a 7,000 sq. ft. winter garden and include green spaces, leisure and a range of publicly accessible areas.

Construction of the building is already underway and will be delivered into a supply-constrained market in 2027, Modon said.

In April 2024, Broadgate REIT secured a pre-let and signed an agreement with the hedge fund firm Citadel and leading global market maker Citadel Securities to lease 261,000 sq. ft. of workspace, with options to lease up to another 121,000 sq. ft. at 2 Finsbury Avenue. This pre-let meant the building is already 33% pre-let at a minimum, and 50% pre-let if the optional space is taken.

Sir Robert McAlpine has already been appointed as the main contractor for 2 Finsbury Avenue and the development strategy for 2 Finsbury Avenue has sustainability at its core and once completed, the building will be an all-electric and smart-enabled development ensuring operational energy efficiency and a net zero carbon footprint.

This transaction aligns with Modon’s strategy to diversify its business portfolio and expand its global footprint. By partnering with Broadgate REIT to deliver 2 Finsbury Avenue, Modon Holding is capitalising on the opportunity to invest in high quality prime real estate assets in global financial hubs, with the vision to create long-term value and recurring income for its shareholders.

Pursuing Global Growth

Modon Holding Chairman Jassem Mohammed Bu Ataba Al Zaabi said that partnering with Broadgate REIT in the development of 2 Finsbury Avenue, is a key milestone in Modon’s strategy to pursue international growth, supporting their strategy to diversify development and investment business outside of the UAE and another step towards creating long term sustainable value for the company’s shareholders.

Modon Holding’s Group CEO Bill O’Regan said that the quality and leasing potential of 2 Finsbury Avenue coupled with the experience and reputation of their partners, made this a compelling entry for the company into the London real estate market.

British Land Chief Executive Simon Carter said that the establishment of this new JV is a vote of confidence for both Broadgate and the City.

The development is due to complete in 2027, where there is forecast to be a significant imbalance between demand and supply for new and substantially refurbished space, particularly in the city, leading to strong rental growth at the top end of the market, Carter said, Carter said.

This transaction is another example of how we drive value through establishing innovative JV partnerships and is in line with our strategy to actively recycle capital, he added.