Green loan completes for British Land's and GIC's Broadgate

Image: Number 1 Broadgate, City of London (courtesy AKT II)

Broadgate, a joint venture between British Land and GIC, has completed a £450m 5-year Green Loan with two banks, secured on 1 Broadgate. This follows practical completion of the development in July, where the offices are 96% pre-let to A&O Shearman and JLL. 

British Land reports:

'1 Broadgate offers some of the highest quality, sustainable mixed-use space in London, with 545,000 sq ft of best-in-class workspace and roof terraces, and prime retail and leisure space. It is one of the most operationally energy efficient offices British Land has ever built, located within Broadgate, our vibrant office-led campus in the heart of the City of London, with excellent connectivity, next to Liverpool Street Station and the Elizabeth Line.

'This financing, at current attractive market spreads, further diversifies sources of finance and, following distribution of the proceeds, reduces British Land’s Group Net Debt to EBITDA by c. 0.6x.

'David Walker, Chief Financial Officer at British Land, said:

"We are delighted to have successfully arranged this £450m loan on our newest, best-in-class office building. This transaction underscores the confidence of our banking partners in this asset and the campus, and Broadgate’s continued appeal as the place to be in London for ambitious, forward-thinking businesses. The financing further enhances our flexibility to continue delivering space that meets the evolving needs of our customers, into a heavily supply constrained market where rents are growing strongly.”

On the completion of the development in July, British Land reported:

'The retail and leisure space on the ground and lower ground floors of 1 Broadgate is generating strong interest and has already secured leading fashion brands including Mango, Luca Faloni, Hobbs and Whistles, and popular wine bar Vagabond. It will connect to the existing retail and leisure offer at 100 Liverpool Street, which includes Watches of Switzerland, Reiss and Space NK, and will link Liverpool Street station to Finsbury Avenue Square.

David Lockyer, Head of Development at British Land, commented:

"We are delighted to reach this significant milestone with 1 Broadgate, delivering another best-in-class office development into a supply-constrained market, where demand for premium office space remains exceptionally high. Achieving a 96% pre-let for the office spaces is a testament to the quality and appeal of the area, as well as the significant investment we've made in the Broadgate campus. We look forward to welcoming our customers and seeing the building come to life.”

British Land also updated in July on an active first quarter across Broadgate and Norton Folgate, as occupiers continue to focus their attention on best-in-class space in core locations.  

British Land said:

'At Broadgate, leasing of new Storey space has been strong. Storey at 201 Bishopsgate, spanning 35,000 sq ft, is now fully let or under offer to 11 businesses including DocuSign and the National Institute for Health and Care Research, in line with target pricing and at an 18% premium to traditional net effective rents, including accounting for fit out depreciation. The recently completed Storey space at Broadgate Tower, spanning 12,500 sq ft, is also already 67% let or under offer within six weeks of launching.

'Across the wider Broadgate campus, in the three months to 30 June 2025, there have been 12 leasing deals spanning 48,000 sq ft, 4.1% ahead of ERV, with a further 128,000 sq ft under offer, 8.0% ahead of ERV, including 30,000 sq ft at 1 Finsbury Avenue. Looking ahead, 1 Broadgate will complete in July and the office space is fully pre-let to A&O and JLL, with the exception of one floor.

'At Norton Folgate, in the three months to 30 June 2025, there have been 11 leasing deals totalling £3.0m of rent, representing around a quarter of the space remaining. £2.1m of this is additional to the £14.6m of rent reported at year end results, demonstrating strong leasing momentum. New occupiers include Metaview, Hoxton Wealth and StackAdapt at average headline rents of £85 psf.

'This leasing activity takes Norton Folgate to 64% let or under offer, rising to 77% when including leases in negotiations.  The property remains on track to be fully let by the end of the financial year.

'Nearby at Aldgate Place: Phase 2, our build-to-rent scheme The Alma, is now 50% let. Leasing velocity has picked up significantly in May and June and is expected to continue through to the Autumn.

Kelly Cleveland, Head of Real Estate at British Land said:

“Leasing momentum at our City assets has continued into the new financial year due to the strength of demand and acute lack of supply in this part of London. Both Storey and Norton Folgate provide exceptional space, with a vibrant environment that appeals to smaller, fast paced, innovative businesses, with a focus on brand and culture. These businesses typically take decisions at speed, and both spaces provide a range of options for them to move into quickly.”