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Mitsubishi Estate and Partners Launch GBP 550 Million Office Redevelopment at 125 Shaftesbury Avenue in London’s West End

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Mitsubishi Estate and Partners Launch GBP 550 Million Office Redevelopment at 125 Shaftesbury Avenue in London’s West End

Mitsubishi Estate and Partners Launch GBP 550 Million Office Redevelopment at 125 Shaftesbury Avenue in London’s West End

Mitsubishi Estate Co., Ltd., Tokyo Tatemono Co., Ltd., Toko Electrical Construction Co., Ltd., Fuyo General Lease Co., Ltd., and EDGE Real Estate B.V. have launched a large-scale office redevelopment project in London under the name “125 Shaftesbury Avenue.” The project carries a total development cost of approximately GBP 550 million (approximately JPY 104.5 billion), with construction scheduled to begin in summer 2026 and completion targeted for 2028.

The property is an office building originally completed in 1982. The redevelopment will retain approximately 75% of the existing structure while adding two additional floors. Upon completion, the building will rise to 13 stories above ground, and the Gross Floor Area will expand by roughly 47%, from approximately 6,914 tsubo (approx. 246,000 sq. ft.) to approximately 10,129 tsubo (approx. 360,500 sq. ft.). The plan also includes the creation of a new pedestrian passage reconnecting Old Compton Street and New Compton Street, which were historically linked, thereby enhancing permeability and walkability within the urban block. The project aims to achieve leading sustainability and wellness certifications, including BREEAM Outstanding, EPC A, and WELL Platinum.

The site is located in London’s West End, within the Soho and Covent Garden area, approximately a three-minute walk from Tottenham Court Road Station. As of Q2 2025, West End office vacancy has declined to the low-7% range, marking the lowest level in 18 months, with a pronounced “flight to quality” toward Grade A assets. Prime rents have increased by approximately 6% year-on-year, and rents exceeding GBP 200 per tsubo have become established in submarkets such as Mayfair and St. James’s. Properties certified as BREEAM Outstanding are reported to command green premiums of more than 10%, a benefit the sponsors also expect to capture through this redevelopment.

Mitsubishi Estate is planning approximately GBP 2.0 billion in investments across the UK and is currently advancing several large-scale projects, including “72 Upper Ground” on the south bank of the River Thames, which has a total development cost of approximately JPY 160.0 billion. The company’s European portfolio has grown to approximately JPY 360.0 billion in total assets, with a target of achieving JPY 90.0 billion in operating profit from overseas businesses by fiscal 2030.

Key Facts

  • Property Name: 125 Shaftesbury Avenue

  • Project Sponsors: Mitsubishi Estate Co., Ltd.; Tokyo Tatemono Co., Ltd.; Toko Electrical Construction Co., Ltd.; Fuyo General Lease Co., Ltd.; EDGE Real Estate B.V.

  • Location: 125 Shaftesbury Avenue, London

  • Nearest Station: Tottenham Court Road Station, approx. 4-minute walk

  • Construction Start: Summer 2026 (scheduled)

  • Completion: 2028 (scheduled)

  • Existing Building: 11 stories above ground (Completion: 1982)

  • Post-Redevelopment Scale: Number of Floors: 13F

  • Gross Floor Area: approx. 6,914 tsubo (approx. 246,000 sq. ft.) → approx. 10,129 tsubo (approx. 360,500 sq. ft.) after redevelopment

  • Total Development Cost: approximately GBP 550 million (approx. JPY 104.5 billion)

  • Lender: Sumitomo Mitsui Trust Bank, Limited