The £273m redevelopment of One Appold Street by Skanska for Broadgate is not simply another City of London office project; it is a strong market signal that institutional investors are again committing capital to technically complex, long-horizon refurbishments where carbon, regulatory certainty and delivery capability are tightly coupled.
The decision to retain the existing concrete and steel frame while vertically extending the building reflects a growing investor preference for projects that reduce embodied carbon risk, align with tightening sustainability benchmarks and can be demonstrably delivered by contractors with proven refurbishment and MEP integration capability.
1. Why this project matters to London’s commercial market
One Appold Street sits at the heart of Broadgate, one of London’s most scrutinised commercial districts. Choosing refurbishment over demolition is not just a sustainability statement, it is a risk management decision. Retaining the structural frame materially reduces programme uncertainty, embodied carbon exposure, and planning friction, while still allowing for a significant uplift in lettable area and building performance.
For investors, this signals confidence that prime City assets can be repositioned to meet modern occupier expectations without incurring the full carbon and regulatory costs associated with new-build schemes.
2. Investor discipline, not sentiment, is driving this scheme
The construction contract is with Broadgate, a joint venture between British Land and GIC, two investors known for long-term asset stewardship rather than short-term yield extraction.
Targeting NABERS 5–5.5 and BREEAM Outstanding is not branding. These benchmarks increasingly influence:
- institutional capital allocation,
- tenant covenant quality,
- insurance pricing,
- and exit liquidity.
This project demonstrates disciplined capital deployment into assets that are expected to remain compliant, insurable, and competitive well into the next decade.
3. Skanska’s role: delivery credibility is the differentiator
Selecting Skanska for both construction and in-house MEP delivery reflects a clear preference for integrated delivery models on refurbishment-led towers. Retaining and extending an existing frame while introducing new services, expanded floorplates, and a new façade places exceptional demands on sequencing, temporary works, and interface management.
Skanska’s track record in complex London refurbishments (particularly where sustainability outcomes must be proven, not promised) materially de-risks execution for the client team. This is not about lowest price; it is about certainty of outcome.
4. Sustainability as a delivery constraint, not a slogan
The project’s emphasis on circularity and structural reuse reflects a broader shift in how sustainability is treated on major London schemes. Carbon is now a design constraint and commercial variable, not a post-design overlay.
By avoiding wholesale demolition and new steel fabrication, the project materially reduces embodied carbon while maintaining programme momentum, a balance that many schemes struggle to achieve once delivery realities emerge.
5. What this signals for future City developments
With works underway and completion targeted for Q1 2029, One Appold Street reinforces several emerging market truths:
- refurbishment-led intensification is now a preferred strategy in prime locations,
- sustainability credentials must be defensible under scrutiny,
- and delivery partners are being selected on execution credibility, not narrative strength.
For London’s commercial pipeline, this scheme is less about headline value and more about how capital is choosing to deploy itself in a post-carbon-naivety market.
|
Expert Verification & Authorship: Mihai Chelmus
Founder, London Construction Magazine | Construction Testing & Investigation Specialist |
