M&G’s redevelopment of £250 million West End office asset gets underway

11 April 2024

M&G Real Estate (M&G) today announces the redevelopment of The Ribbon – its 80,000 sq. ft West End office scheme on the corner of Oxford Street and Wells Street – marking a significant step in its commitment to deliver assets of scale in prime locations.

M&G secured approval for the development on behalf of the £126 billion Prudential With Profits Fund and its 4.6 million policy holders, with a vision to create a state-of-the-art building, through its all-electric and net zero carbon design, capitalising on its excellent surrounding transport links. Wates has been appointed as the main contractor and CBRE as development managers with completion expected by the end of 2025.

It complements M&G’s £200m Tottenham Court Road development, ‘The Fitzrovia’, in partnership with Nomura, which reflects continued international appetite to invest in developing sustainable offices in London. In both of these deals, the combination of With Profits capital in addition to M&G Real Estate’s deep market expertise demonstrates the firm’s ability to deliver future proofed assets of scale.

The Ribbon’s position aligns seamlessly with the evolving needs of today’s office occupiers seeking quality spaces in desirable locations. The scheme comprises a large retail unit fronting Oxford Street on ground, basement and first floor levels, and new grade A offices above (2nd to 8th floors) with a large communal terrace on the 9th floor. Figures show that Grade A transactions accounted for 89% of space leased in the West End last year2, while 66% of space acquired in the City last quarter has been in BREEAM-rated Excellent or Outstanding buildings3.

Designed by Orms architects, The Ribbon will blend modern design and with respect for the area’s rich heritage and a commitment to responsible development. The scheme will target NABERs 5*, WELL Platinum, BREEAM Outstanding and Smart Enabled certifications.

Aaron Pope, Head of Offices Asset Management at M&G Real Estate, said: “This major redevelopment reflects M&G’s commitment to deliver assets of scale in prime locations with exemplary ESG credentials. The Ribbon is already attracting strong interest from potential corporate occupiers whose decisions are strongly influenced by environmental and wellbeing factors, which will enable us to seek compelling risk adjusted returns for our clients.”

M&G Real Estate is part of M&G plc’s £73 billion Private Markets division.

Source: M&G