A joint venture between Canadian investor Cadillac Fairview, the real estate arm of Ontario Teachers’ Pension Plan and UK developer Stanhope, has finalised an agreement to buy 70 Gracechurch Street, a prime office building situated in the City of London. The property offers a rare combination of attractive day one yield running into a significant 600,000 sqft development opportunity. 

The site is currently occupied by a 10-storey building leased by Marks & Spencer and AXA-owned insurer XL Catlin with existing planning consent for a 34-storey tower offering.

The investment is the latest venture for the two companies that announced a fortnight ago they are teaming up with Thomas White Oxford to deliver a £700 million innovation district at Oxford North.  

Stanhope are also working with Cadillac Fairview at White City Place, the expanding creative and life sciences hub which Cadillac Fairview acquired in 2020.

Commenting on the purchase, Jenny Hammarlund, managing director, Head of Europe, Cadillac Fairview said: “Following our recent agreement to develop Oxford North as well as recent investments in the logistics and the residential sectors in the UK, our acquisition of 70 Gracechurch Street further demonstrates our commitment to grow our investment portfolio in the UK. We see continuing opportunities for high quality, differentiated office, particularly in London, and this is a long-term investment in the future success of the City of London.”

David Camp, Chief Executive of Stanhope added: “This is a unique asset being a prime Freehold in the heart of the City with well secured income and a planning consent in place for a new city tower. Reflecting the rapidly evolving needs of occupiers  and the imperative that we must be continually pushing the boundary of carbon neutrality and broad ESG and EDI principles we will undertake a thorough, research based, review of the design to ensure that the building is robust in meeting the needs of occupiers into the 2030s and beyond ”

CBRE acted for Stanhope and Cadillac Fairview, Savills acted for the Vendor.

About Cadillac Fairview

Cadillac Fairview (CF) is a globally focused owner, operator, investor, and developer of best-in-class real estate across office, residential, logistics, life sciences and mixed-use asset classes. As the real estate arm of Ontario Teachers' Pension Plan, which has $228 bn of AUM, CF currently manages in excess of $35 billion of assets across Europe and the Americas, with further expansion ongoing into Europe and Asia.

Internationally, CF invests in communities with like-minded partners, including Stanhope in the UK, Lincoln Property Company in the U.S., and Multiplan in Brazil. The company's Canadian portfolio comprises 68 landmark properties, including the Toronto-Dominion Centre, CF Toronto Eaton Centre, Tour Deloitte, CF Carrefour Laval, CF Chinook Centre and CF Pacific Centre.

Continually striving to make a positive impact in communities where it operates by promoting social connection, growth, and a sustainable future, CF's Purpose is Transforming Communities for a Vibrant Tomorrow.

About Stanhope

Stanhope PLC is a developer, investor and asset manager with a London office of more than 70 staff including specialist expertise in property, construction, and asset management.

Stanhope has delivered more than 30 million sq ft, and achieved £30 billion of end value, delivered and under construction. The company typically manages around £3 billion of construction value on site and in its pipeline.

Stanhope generates consistent returns for its partners while setting new standards for workplaces, homes and cultural spaces that people love to use. Its development management model enables the delivery of projects from inception to successful operation, as well as offering clients more targeted support in phases where they need it most.

Combined with its company culture, Stanhope’s approach helps identify better answers, manage risks and navigate complex processes to create lasting value for its partners and the communities they jointly serve.

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