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Peter Ferrari’s Ashby Capital is close to completing a deal to buy the 55 Old Broad Street development project from Landsec.
With a funding deal agreed between Landsec and Ashby, demolition work on the existing building at the site is set to begin in January, Building reported.
The redevelopment of 55 Old Broad Street will create a new 23-storey, 360K SF office tower, with the end value estimated at around £600M. Skanska has been appointed main contractor on the project.
Landsec has been selling off its London office development portfolio, having decided it can make better returns in the shopping centre market. Earlier this year, it sold a development scheme on London’s Southbank to a joint venture between Cheyne Capital and Stanhope.
It is also selling Hill House, an £800M City of London office development, and 123 Victoria Street, an existing office valued at £265M, CoStar reported.
Investors and developers are increasingly interested in London office development projects like 55 Old Broad Street, where construction work can begin quickly. That will allow owners to capture strong rental growth being shown by good-quality new office buildings.
Ashby Capital was set up in 2013 by Ferrari, a former managing director of Gerald Ronson’s Heron International. When it was established, the company said it had received backing from unnamed Middle Eastern investors.
Its development projects in London include the JJ Mack Building in Farringdon and the Kensington Building in west London.
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