Proposals for the tallest tower in the City of London are now under the microscope following Britain’s decision to leave the European Union, according to sources.
Bloomberg is reporting that
AXA will ask investors whether or not they wish to proceed with the construction of the tower. Quoting an unnamed “person with knowledge of the plans”, the newswire outlines that investors have had three choices put forward by
AXA Investment Managers-Real Assets – to stick to the plan to start work on the building this year; delay the project; or potentially even sell it. The last option, however, is seen as the least likely.
Speaking shortly before the Brexit vote, Pierre Vaquier, the chief executive of the unit proposed at Bishopsgate, commented that the company would wait for the outcome of the referendum before making a decision on the construction of the 62-storey tower (as we reported
here).
However, the commercial property market in the UK has since entered a recession: the value of London offices has slipped by 3.6% according to MSCI Inc.
In an email to
Bloomberg, Richard Sunderland, spokesman for AXA Investment Managers-Real Assets, said “we remain committed to the site, we are continuing to work and we are considering all our options.”
Should investors choose to proceed, the main construction contract may be signed as early as October, the source suggested.
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