Mitsubishi Estate has commenced work on two office developments in London requiring a combined investment of ¥248 billion ($1.75 billion), signaling confidence in the premium office market despite broader economic uncertainties.
The Japanese developer’s flagship project will transform British broadcaster ITV’s former Thames riverside headquarters into a mixed-use development featuring offices and restaurants. With a ¥160 billion price tag, it ranks among Mitsubishi Estate’s largest European ventures and will provide 53,400 square meters of office space upon completion in 2029.
Near Westminster Abbey and Parliament, the company’s second project involves renovating an existing building into an office complex at a cost of ¥88 billion. Scheduled for completion in 2028, this development will incorporate portions of the current structure to reduce carbon emissions, addressing UK regulations that mandate maximum reuse of existing buildings.
The Thames project has faced regulatory challenges, including a public inquiry ordered by government officials due to concerns about its scale and environmental impact from local community groups.
The London investments align with Mitsubishi Estate’s global strategy, which targets ¥90 billion in operating profit from international operations by 2030. The developer has indicated it may achieve this goal ahead of schedule, with European ventures now representing approximately one-fifth of its overseas portfolio.
