Development of 120 Fenchurch Street

Posted in March 2012

Greycoat and Core have joined forces to develop the property on behalf of Italian insurer Generali.

The new joint venture company was chosen ahead of a stellar field of developers, thought to include Stanhope, Development Securities and Hammerson.

The site at 116-120 Fenchurch Street and 10-14 Fenchurch Avenue was granted consent in September 2008 for around 400,000 sq ft of office-based space in a 15-storey tower.

“It is a very large and complex scheme,” said Greycoat Chairman, Peter Thornton. “The challenges associated with developing a large City scheme such as this suit our combined skill set, with a number of issues to resolve including completing site assembly, resolving rights to light, and refining the existing planning consent.”

Generali controls the site through a mix of freeholds and leaseholds in a vehicle called Saxon Land, which it formed with Australian fund manager Babcock & Brown a decade ago. When Babcock & Brown collapsed in March 2009, Generali bought its stake out and sought a development manager at the end of last year.

Thornton said the scheme would probably not start without a pre-let in place, “Generali is very keen to develop the scheme, but starting it speculatively would be a big call,” he said.