Chinese conglomerate Fosun is set to unveil its first major development in the UK, a 400,000 sq ft office block in Aldgate on the City’s eastern fringe.
The company is part of a consortium including former US treasury secretary John Snow, developer Mike Ryan and investment manager Anacott Capital. It will shortly submit plans for the redevelopment of the Lloyds Chambers building at 1 Portsoken Street, E1.
The plans would see the existing 1980s blue glass-clad office block replaced with a building of more than twice its current size.
The building, to be known as the Butterfly, has been designed by Starc-Architects.
Agents CBRE and GM Real Estate have been appointed to advise on the leasing of the Butterfly after seeing off eight rivals.
Work on the building is expected to complete in 2020, subject to planning.
The decision to pursue a major office redevelopment of Lloyds Chambers – which was previously marketed as a residential conversion opportunity – reflects the growing confidence in the Aldgate office market.
Rents in excess of £60 per sq ft have been achieved at the nearby Aldgate Tower, which is now fully let or under offer.
The Fosun-backed consortium bought the 193,450 sq ft Lloyds Chambers in 2013 for £64.5m. It is let to Aon at an annual passing rent of £7.1m but the insurer is no longer in occupation, having moved to the Leadenhall Building, EC3.
Sub-tenants including Hermes are looking for alternative office space in London ahead of the 2018 lease expiry.
All parties declined to comment.
