M&GPrudential plans $1 billion City of London development

LONDON (Reuters) - M&GPrudential, part of insurer Prudential PRU.L, said on Monday it would invest 875 million pounds ($1.08 billion) in a prime City of London office development.

M&GPrudential, soon to be demerged into a separate company as part of a break-up of Prudential, said it had bought 40 Leadenhall from AIMCO and Nuveen Real Estate and planned to develop a new 905,000 square foot office complex.

The site has permission for the development of two towers, providing 14 and 34 storeys of predominantly office space, M&G Prudential said in a statement, with carbon emissions 30% below current regulations.

“London’s commercial property market currently offers good value relative to other capital cities such as Paris and Tokyo, partly due to Brexit-related uncertainty,” said Tony Brown, Global Head of M&G Real Estate.

“As there are a limited number of developments underway in London, we expect high-quality office space like this with an emphasis on green credentials and employee well-being to be in demand from occupiers when the scheme is completed in four years.”

Reporting by Simon Jessop, editing by Louise Heavens