M&G Investments has agreed a £265m deal with mining behemoth Anglo American to redevelop its London headquarters.
M&G has exchanged contracts to acquire the freehold and will finance the redevelopment of the Charterhouse Estate office in Farringdon. A 25-year lease will commence upon completion in 2020.
Capital will be provided by the £3.8bn M&G Secured Property Income Fund.
Alongside the 146,000 sq ft of office space, there will be 27 residential apartments and warehousing.
The development will be home to De Beers Group, which is majority-owned by Anglo American. The Charterhouse Estate in Farringdon has been part of the De Beers Group portfolio since the 1930s.
Ben Jones, manager of the M&G Secured Property Income Fund, said: “This is a rare opportunity to acquire a large freehold asset in central London. Our FTSE 100 tenant will provide much-needed long-term cash flows, with fixed uplifts for our pension fund clients.
“This brings the fund’s exposure to central London offices to 22% and demonstrates the continued commitment and investment from both investors and international companies to one of the world’s leading business and finance centres.”
BNP Paribas Real Estate advised Anglo American. M&G Investments was unrepresented.
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