Modon Holding Forms Joint Venture With Broadgate REIT For Iconic 2 Finsbury Avenue Development In London

Modon Holding P.S.C has announced a new joint venture with Broadgate REIT Limited. This partnership will develop 2 Finsbury Avenue, a significant 750,000 square feet project at Broadgate. Modon will hold a 50% stake, while British Land and GIC will each maintain 25% ownership through their shares in Broadgate REIT.

The development at 2 Finsbury Avenue is set to become an iconic feature in London’s skyline. It includes two high-rise towers: the East Tower with 36 floors and the West Tower with 21 floors. A 12-storey podium will connect these towers, featuring a winter garden and public spaces.

This joint venture marks Modon's initial foray into London's prime real estate market. British Land will continue as the development and asset manager for this project. The collaboration aims to leverage both parties' expertise to deliver this landmark building.

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

The construction of this project is already underway and is expected to be completed by 2027. This timing aligns with a forecasted shortage of new and refurbished space in London, potentially leading to strong rental growth at the higher end of the market.

Simon Carter, Chief Executive of British Land, commented on the partnership: "We are delighted to be partnering with Modon Holding on 2 Finsbury Avenue. The establishment of this new Joint Venture is a vote of confidence for both Broadgate and the City."

Innovative Partnership Approach

Carter further noted that this transaction exemplifies how British Land adds value by forming innovative joint ventures. It aligns with their strategy to actively recycle capital. The collaboration reflects confidence in both Broadgate's potential and the broader City of London market.

The project is situated at Broadgate, a lively office-focused area in central London. It promises to offer green spaces, leisure facilities, and various publicly accessible areas within its design.

This venture represents a strategic move for Modon as it seeks international growth opportunities beyond the UAE. By diversifying its portfolio through such partnerships, Modon aims to create sustainable value for its shareholders over time.

With inputs from WAM