Abu Dhabi-based Modon Holding has partnered with Broadgate Reit, owned equally by FTSE 100-listed property developer British Land and global investor GIC, marking its entry into London's prime real estate market.
The deal involves a 50:50 joint venture to develop 2 Finsbury Avenue, a 750,000-square-foot mixed-use project in the Broadgate campus, a vibrant office-led site in the heart of London.
Modon will own a 50 per cent stake, while British Land and GIC will each retain 25 per cent ownership in the asset through their ownership of Broadgate Reit. British Land will remain the development and asset manager for the project, Modon announced in a statement on Friday.
Scheduled for completion in 2027, the project features two high-rise towers – a 36-storey East Tower and a 21-storey West Tower – connected by a 12-storey podium that will include a winter garden and publicly accessible spaces. Construction is already under way, with Sir Robert McAlpine the main contractor for the project.
Financials have not been disclosed for the project, which Jassem Al Zaabi, chairman of Modon, described as a “key milestone in Modon’s strategy to pursue international growth”.
“The quality and leasing potential of 2 Finsbury Avenue, coupled with the experience and reputation of our partners made this a compelling entry for Modon into the London real estate market,” said Bill O’Regan, group chief executive of Modon Holding.
The development, which is 33 per cent pre-leased to hedge fund Citadel and Citadel Securities, prioritises sustainability with an all-electric, net-zero carbon design.
Modon's entry into London emphasises its global expansion strategy, focusing on prime assets in international financial hubs to ensure long-term value and sustainable income.
“The establishment of this new joint venture is a vote of confidence for both Broadgate and the City [of London],” said Simon Carter, chief executive of British Land. “This transaction is another example of how we drive value through establishing innovative JV partnerships and is in line with our strategy to actively recycle capital.
“The development is due to complete in 2027, where there is forecast to be a significant imbalance between demand and supply for new and substantially refurbished space, particularly in the City, leading to strong rental growth at the top end of the market.”
Modon Holding was created in March 2024 following the merger of Q Holding, Modon Properties and Adnec, a move aimed at expanding its market presence in the UAE and internationally.
In October, Abu Dhabi-based investment and holding company ADQ announced that Modon Holding would serve as the master developer for a megaproject in the Egyptian coastal city of Ras Al Hekma. The development's investment is projected to reach $150 billion.
In the same month, British billionaire Nick Candy announced that his company, Candy Capital, had entered into a deal with Modon Holding. The joint venture will focus on delivering a portfolio of “extraordinary real estate developments” across high-end residential, commercial, and hospitality sectors.
