Skanska appointed to deliver £273m Broadgate office scheme as major pre-let secured

Skanska has been appointed to deliver the £273 million redevelopment of 1 Appold Street at Broadgate, as the scheme secures a major pre-let to global law firm Herbert Smith Freehills Kramer.

The contract, awarded by the Broadgate joint venture between British Land and GIC, covers full construction and mechanical and electrical services installation. The redevelopment will transform the existing 1986 building into a 14-storey, 360,000 sq ft office scheme, alongside 48,000 sq ft of leisure space including gym and restaurant facilities.

The structural refurbishment involves replacing the façade, expanding the floorplates in all directions and adding six new floors to the retained steel frame. Construction is due to begin in Q1 2026, with completion targeted for Q1 2029.

In parallel with the contractor appointment, the joint venture has signed Herbert Smith Freehills Kramer on a 21-year lease for 268,000 sq ft of office space. The firm will occupy the building under its own entrance at 8 Exchange Square and retains options to expand up to 360,000 sq ft. The agreement takes the scheme to 60% pre-let by estimated rental value, with potential to reach full pre-let status if option space is exercised.

The letting is seen as a strong endorsement of demand for prime, amenity-rich office space within Broadgate, which is located adjacent to Liverpool Street station and benefits from direct connections to one of London’s most significant transport hubs.

Kelly Cleveland, head of real estate and investment at British Land, said the deal reinforces the campus’s position as one of the City’s most in-demand locations. “Herbert Smith Freehills Kramer’s decision to relocate across Exchange Square highlights how the quality of the public realm and amenity continues to shape occupier choice,” she said.

The new building will feature terraces overlooking Exchange Square and is targeting market-leading sustainability standards. The scheme is also expected to include a high-quality gym and health club operator within the leisure space, which is currently under offer.

Tracy Stroh, head of Europe real estate at GIC, said the agreement reflects continued demand for high-grade office space at Broadgate, while Jeremy Walden, executive partner for UK and EMEA at Herbert Smith Freehills Kramer, described the move as a “significant milestone” in the firm’s strategic plans for London.

The project continues the repositioning of older City office stock through deep structural refurbishment and vertical extension, delivering next-generation workspace while retaining significant elements of the original structure.