Partners Group, the Zug, Switzerland-based private markets manager, is making its first foray into London real estate development with the construction of 80 Fenchurch Street in the City of London.
In a joint venture with development partner Marick Real Estate the firm is developing a Class A office building with an expected total project cost of £200 million (€282 million; $308 million).
The development project will include the demolition of an existing, vacant building on the site, which is due to take place at the end of June. Construction of the new building will begin in early 2016, with completion expected by the first quarter of 2018. The new building will be a 14-story, 245, 000 square foot office building offering Class A office space with design features including a series of tiered roof gardens.
“The 80 Fenchurch Street development is a fit with our strategy of selectively developing core properties that meet end-user demand in markets with strong fundamentals,” said Claude Angéloz, partner and co-head private real estate at Partners Group.
“Development is one of three themes for us, the overarching theme is to manufacture core in markets where Class A is high in demand from tenants, from investors. We selectively pursue develop to core opportunities but, the bulk of our investment activity is a classic buy, fix, sell strategy.”
Partners Group already was working on a development project in Chicago which will see the firm build a 41-story luxury residential development. Completion for this project is anticipated to be spring 2016 at a total cost of around $155 million.
The Chicago skyscraper, developed as a joint venture between Partners Group, Becker Ventures, and The John Buck Company, is named MILA due to its location on the corner of Michigan Avenue and Lake Street.
The building will feature 402 Class A luxury residences and amenities such as a roof-top pool and lounge, dog-park and pet grooming stations, and fully equipped media and gaming rooms.
The development’s first two floors will also feature more than 21,000 square feet of retail space that range from 1,200 to 8,500-square-foot units.