Quadrant Estates & Orion under offer to buy 80 Fenchurch Street in the City of London

The pair is thought to have agreed terms to buy the site from Irish investor Shieldpoint, which instructed Savills to sell it last summer. 80 Fenchurch has a December 2008 planning consent in place for for a 250,000 sq ft, 10-storey scheme, which has a gross development value of £200m. Quadrant and Orion have been actively seeking investment and development opportunities in the Square Mile in recent months, having bid together to buy One Angel Court from TIAA-CREF last month before the asset went under offer to Stanhope and Mitsui. In April, Quadrant alongside Berkeley Homes emerged as the frontrunner to buy One Crown Place from UBS before an eleventh hour bid from Malaysia's AlloyMTD displaced the partners. The Fenchurch Street site has attracted a range of interest from investors over the last few months, with Henderson Global Investors and Perella Weinberg both thought to have been lining themselves up to buy it. However, a deal was never agreed owing to differing opinions on where the pricing should be. A purchase price for the Qadrant/Orion deal has not been confirmed, although market sources suggest a figure of £35m has been agreed. The Irish investors that own 80 Fenchurch Street instructed Savills last August to sell the asset in a move which ended months of speculation over a potential sale. The instruction was made two years after Shieldpoint first began talking to investors off market. Savills replaced previous selling agent Strutt and Parker. Shieldpoint’s acquisition of the buildings that make up the development opportunity was backed by Ireland’s nationalised bank Allied Irish, although the site was never absorbed by the National Asset Management Agency. Shieldpoint owns the long leasehold interest in the development, with New College Oxford the owner of the freehold of part of the site.