AXA IM Alts secures £480 million development loan for landmark net-zero London office scheme


50 Fenchurch Street

AXA IM Alts, a global leader in alternative investments with €183 billion of assets under management, has secured a £480 million construction loan from Cale Street, the real estate investment and finance firm, to fund the development of its 650,000 sq ft (60,000 sqm) next generation office building at 50 Fenchurch Street.

This transaction represents one of the largest development loans agreed ahead of any pre-let in the UK since the beginning of 2023.

Following the acquisition of the site by AXA IM Alts on behalf of clients in 2022, the 6-year facility will fund the delivery of the 36-storey building.

With demolition and enabling works substantially progressed, construction is expected to commence this year, following the appointment of a main contractor. YardNine are acting as delivery partner for the project.

Designed to reflect evolving occupier requirements, the building will incorporate flexible grade-A office space coupled with state-of-the-art technology.

50 Fenchurch Street will also offer facilities and amenities which enhance occupiers’ experience and aim to improve the health and wellbeing of people working in the building, which, in turn aids productivity.

The development project includes the retention of two historic listed buildings, the Tower of All Hallows Staining and Lambe’s Chapel Crypt, which will be relocated within the scheme to form part of an extensive new public realm.

Sustainability and wellbeing are a key focus for the building, incorporating abundant vertical urban greening designed to enhance the workplace environment, biodiversity and air quality.

Utilising all electric energy and consuming 50% less energy than a typical office tower, the scheme is targeting BREEAM Outstanding and net zero in operation, whilst also adopting the latest innovations to reduce embodied carbon during construction.

Occupiers and visitors will benefit from over 1.5 acres of outdoor space and terraces, with balconies on the majority of levels, including public gardens on Level 10 which will provide river views over the Tower of London and Tower Bridge.

50 Fenchurch benefits from exceptional connectivity, being served by eight tube and mainline stations within an eight-minute walk from the site.

Rob Samuel, UK Head of Development at AXA IM Alts, commented:

“The divergence in the London office market between prime well connected, sustainable, amenity-rich spaces and poorer quality buildings continues apace, with a supply-demand imbalance in favour of the former.

Cale Street’s support for this BREEAM Outstanding development is a strong endorsement of our approach at 50 Fenchurch Street, where we will deliver a landmark, next generation office into the heavily supply constrained City of London market.”