British Land (BL) and GIC have signed Herbert Smith Freehills Kramer (HSFK) for 268,000 sq ft of office space at the latest office redevelopment within their Broadgate campus in the City of London.
The £273m project is set to complete in Q1 2029
The joint venture has secured a 21-year lease with the law firm as an anchor tenant at 1 Appold Street, giving it options to take from a minimum of 238,000 sq ft up to the entire 360,000 sq ft.
HSFK will also have its own entrance known as 8 Exchange Square.
The deal brings the building to 60% pre-let by estimated rental value, and 100% pre-let on the office space if HSFK takes the maximum space option.
It also fires the starting gun on the delayed redevelopment of 1 Appold Street, which is set for completion in 2029. Built in the 1980s, it currently has 190,000 sq ft of offices. BL started exploring options for a refurbishment and repositioning in 2021.
Skanska has been appointed to carry out the £273m project and will strip back the current building and rebuild it into low-carbon workspace.
Around 75% of the existing primary structure, including the substructure, frame and upper floors, will be retained to cut embodied carbon, while six new office floors will be added, taking the building to 14 storeys.
Extended floorplates will bring the building’s total internal space to around 558,000 sq ft, plus new amenities such a gym, a swimming pool, a brasserie and landscaped balconies.
The joint venture said 48,000 sq ft of leisure space in the building was under offer to a gym and health club operator.
Kelly Cleveland, head of real estate and investment at BL, said: “There is an increasingly diverse mix of global businesses choosing Broadgate for its connectivity and amenities, sustainability standards and public spaces.
“HSFK’s decision to relocate across Exchange Square highlights how the quality of the public realm and amenity continues to shape occupier choice across the campus.
“Their commitment to retaining their London head office here continues our longstanding relationship and reinforces the strong demand we’re seeing for exceptional workspace in the best locations, which helps people and businesses thrive.”
The 1 Appold Street plot is one of the last at the Broadgate campus to be developed. The joint venture said it aimed to take advantage of an estimated 5m sq ft shortfall of new or refurbished space in the City over the next four years, with active leasing requirements at their highest level since 2011.
BL committed to redeveloping the 34-storey Broadgate Tower in March 2025, while One Triton Square was recently revamped.
Tracy Stroh, head of Europe real estate at GIC, said: “This agreement with HSFK reflects the strong demand for high-grade office space at Broadgate. We look forward to welcoming HSFK to their new head office and continuing our more-than-decade-long partnership with BL as we further develop the Broadgate campus.”
Jeremy Walden, executive partner, UK and EMEA, at HSFK, added: “This marks a significant milestone in the strategic vision of our global business. We are delighted to be continuing our long-term relationship with the Broadgate joint venture. Its commitment to community, innovation and sustainability is fully aligned with our own values and ambitions.”
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