Henderson Global Investors Ltd., the manager of $118 billion in assets, won local-government approval to build a London office complex capped by a 156-meter tower nicknamed “Gotham City.”
The City of London Corporation gave the company permission to develop the project at a meeting today. The 36-story building will be part of a 122,000 square-meter (1.3 million square foot) office complex in the U.K. capital’s main financial district, space according to a corporation filing.
Developers in London are ramping up construction as demand for new offices climbs. Rentals in central London increased by 41 percent to 13.1 million square feet in 2013, according to broker Knight Frank LLP.
Developers that started office towers in 2010 have leased most of the space before the buildings have completed. The 20 Fenchurch Street tower, a Land Securities Group Plc (LAND) and Canary Wharf Group project nicknamed the Walkie Talkie, is 64 percent leased and has deals for another 23 percent awaiting legal approval, according to the companies. British Land Co. (BLND) and Oxford Properties Group Inc. said they have agreements for more than half of the Leadenhall Building, known as the Cheesegrater, ahead of completion in the middle of this year.
Henderson’s project will cost about 391 million pounds ($652 million) to build, the company said on Sept. 17. It will be completed by 2019 at the earliest, Nick Deacon, the company’s director of property said at the time. The company plans to secure tenants for 300,00 to 350,000 square feet of space before beginning construction, he said.
About 2.7 million square feet of office space in the City may be vacated by tenants in 2019, according to data compiled by Knight Frank.
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