McLaren Construction has been appointed to deliver a new office development in the City of London, valued at £125 million.
Inside the deal: Joint venture (JV) development partners Helical and Places for London have signed a financing agreement with HSBC to fund construction of 10 King William Street.
The first of three initial sites for the JV, the eight-storey office building will span a net internal area (NIA) of 139,000 sq ft, with 7,260 sq ft of terracing.
Additionally, 1,950 sq ft of retail and amenity space, including a wellness suite, will also be constructed by McLaren.
10 King William Street is to be built above Bank station, on Cannon Street, which opened in February 2023.
The building is targeting BREEAM ‘Outstanding’, NABERS 5* and WELL Platinum ratings.
The four-year finance facility from HSBC, with a one-year extension, will fund the remaining development costs.
McLaren is on site and the building is scheduled to complete in December next year.
“This facility, secured on competitive terms, highlights the confidence in the London office market for ‘best-in-class’ assets, rich in tenant amenity, which will be delivered into a supply constrained City Core market where we are seeing strong rental growth and increasing momentum behind a more comprehensive ‘return to the office’,” said Matthew Bonning-Snook, chief executive of Helical.
According to property consultant Knight Frank, newly constructed office availability in the City of London has fallen to 0.5 per cent, causing prime rents in the area to rise 16 per cent over the past 12 months.
This latest appointment follows McLaren being appointed to build the £60 million first phase of a Foster & Partners designed mixed-use development in London’s West End.
Appointed by O&H Properties, the New Bond Street scheme will deliver a seven-storey 5,400 sqm retail and office development.
In January McLaren appointed Glen Harding as its new commercial director, recruiting him from Sir Robert McAlpine.
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