LANDSEC SELLS £600M CITY OF LONDON DEVELOPMENT SITE AS IT SHIFTS AWAY FROM SPECULATIVE OFFICE PROJECTS

Landsec has agreed the £600m sale of its 55 Old Broad Street development site in the City of London to AshbyCapital, marking another major step in the property giant’s strategic move away from speculative office development.

The landmark scheme, located close to Liverpool Street Station, has planning consent for a new 23-storey office tower providing approximately 360,000 sq ft of Grade A office accommodation alongside 3,500 sq ft of retail space.

While ownership transfers to AshbyCapital, Landsec will remain involved as development manager throughout the project.

Project Overview

📍 55 Old Broad Street, City of London

👤 Developer: AshbyCapital

🏗 Development Manager: Landsec

💰 Transaction Value: £600m

🏢 Development: 23-Storey Commercial Tower

📐 360,000 sq ft Office Space

🛍 3,500 sq ft Retail Space

👷 Status: Demolition Underway

Development Details

Designed by Fletcher Priest Architects, the scheme will deliver a premium commercial office development in the heart of the City of London.

Demolition of the existing building is already underway, paving the way for construction of the new tower.

The acquisition significantly strengthens AshbyCapital’s growing London office portfolio while allowing Landsec to recycle capital into new investment priorities.

ConstructNet Supply Chain Analysis

As the project progresses, opportunities are expected to emerge across a wide range of construction packages, including:

• Groundworks and basement construction

• Structural steel contractors

• Concrete frame specialists

• Façade and curtain walling

• Mechanical and electrical services

• Lift and vertical transportation systems

• Internal fit-out contractors

• Roofing specialists

• External works and public realm

• Building technology and smart systems

• Material suppliers and specialist subcontractors

Given the scale of the scheme and its City location, procurement opportunities are likely to be released across multiple phases as construction progresses.

ConstructNet Intelligence

The sale represents more than a single development transaction.

recently announced plans to recycle £3bn of capital from offices and non-core assets over the next two to five years, redirecting investment towards major retail destinations and a residential platform expected to exceed £2bn by 2030.

The company has also confirmed it will not commence any further speculative office developments until its current London projects, Thirty High and Timber Square, are substantially pre-let.

For the wider construction market, the move highlights a growing focus on lower-risk investment strategies, while demonstrating continued confidence in high-quality, best-in-class office developments where strong occupier demand exists.

The transaction is likely to be closely watched across the commercial property and construction sectors as investors continue to reshape their development pipelines.