M&G Real Estate has agreed terms with global law firm Ashurst to pre-let the entire office element of the London Fruit & Wool Exchange in Spitalfields. Under the terms of the deal, which is believed to be the largest Central London letting this year, Ashurst will take a 20-year lease of around 275,000 sq ft upon completion of the building.
M&G Real Estate acquired the London Fruit & Wool Exchange in March 2015 for £55 million from Central London office developer, Exemplar, who was retained as their development partner on the scheme.
The property, which comprises the London Fruit & Wool Exchange, the Whites Row Car Park, The Gun Public House and 99-101 Commercial Street, encompasses a 2.065 acre island block in the heart of Spitalfields. The site is the last remaining island block in an area that has undergone extensive regeneration over the last 15 years and is surrounded by a rich mix of occupiers and property types, which give it the unique character Spitalfields is famous for.
Commenting, Giles Difford, Asset Management Director at M&G Real Estate, says: “The timing is perfect to be developing in one of the most exciting and vibrant City of London-adjacent sub markets as both investors and occupiers seek value outside of the traditional office core. With the ongoing issue of undersupply of Grade ‘A’ office space in London we felt the redevelopment would appeal equally to media occupiers looking for presence in a very fashionable central London location and City firms for floor plate and scale, together with proximity to Crossrail. Ashurst’s leasing sees the continuation of a recent trend for UK law firms to seek larger and therefore more flexible floor plates.”
While the old London Fruit & Wool Exchange has historically been the dominant building in the area, the new development, with an element of the retained façade, will have all the benefits of a new full specification headquarters in a location that offers seven day a week shopping, dining and leisure opportunities.
The joint letting agents were JLL, CBRE and Knight Frank.
