12 January 2016
Lendlease and LCR today announced the forward sale of a further 515,000 sq ft of commercial space to Deutsche Bank’s asset management arm at The International Quarter – the £2.3 billion development at Stratford, which at a total of four million square feet is one of the largest new commercial developments in London.
The Financial Conduct Authority (FCA) building – which is in the early stages of construction – will sit in a prominent position at the gateway to Queen Elizabeth Olympic Park and is anticipated to house around 3,800 FCA employees from 2018. The building will comprise 19 floors of Grade-A office space and ground-floor retail, designed with the intention of obtaining a BREEAM “Excellent” certificate.
Acquired on behalf of one of its German funds, the asset management business of Deutsche Bank will make staged payments of more than £370 million over the course of the development period. Lendlease and LCR will continue to manage the delivery of the building through the Stratford City Business District Ltd joint venture.
Dan Labbad, Chief Executive Officer, International Operations at Lendlease, said:
“Today’s announcement with Deutsche Bank is further recognition of the remarkable opportunity created by The International Quarter. We have now announced investment totalling more than £615m in less than a month following the forward sale of 265,000 square feet of commercial space pre-let to Transport for London. This is great news for Stratford and further backing for our plans to build a world-class, healthy and flexible workplace in London’s fourth major business district – which will also bring 25,000 new jobs to the area by 2025.”
David Joy, LCR Chief Executive, said:
“Confidence in The International Quarter is growing rapidly and we are delighted to see investors of Deutsche Bank’s calibre banking on Stratford. This is an unprecedented transformation of the area and a unique opportunity to be a part of Europe’s most important strategic development.”
James Petit, Head of Real Estate, U.K. and Ireland, Deutsche Bank, said:
“Buying this building is a great opportunity to invest in one of London’s emerging markets at an early stage and has great potential for strong growth as occupiers are attracted by the diversity and vibrancy of the area.”
The U.K. real estate business of Deutsche Bank’s asset management arm currently holds EUR 5.4 billion in assets under management, and 60 properties as of September 30, 2015.
JLL represented Lendlease and LCR, and Capital Real Estate Partners represented Deutsche Bank.