M&G Investments has agreed to a £265 million ($355 million) deal with Anglo American, the FTSE 100 listed global mining company, to redevelop its London headquarters.
The firm exchanged contracts to acquire the freehold and will finance the redevelopment of the Charterhouse Estate offices. A 25-year lease will commence upon completion in 2020.
In addition to approximately 146,000 square feet of class A office space, there will be 27 residential apartments and warehouse space at the central London location by Farringdon station.
The capital is provided by the £3.8 billion ($5.1 billion) M&G Secured Property Income Fund, which invests in and develops assets across a wide range of commercial real estate sectors, including retail, hotels, offices, student accommodation, healthcare, leisure and residential.
The acquisition brings the fund’s exposure to the central London office sector to 22 percent.
