Generali Real Estate and former Wetherall Smith agent Giles Rooney have reached an 11th hour agreement over the sale of a ransom strip stalling a major City development.
The Italian insurer has agreed to pay Rooney several million pounds to buy the long leasehold interest in 118-119 Fenchurch Street, EC3 to facilitate its 420,000 sq ft office scheme called 10 Fenchurch Avenue.
The pub and offices above were the final piece of the city block the company did not yet own.
The agreement means M&G’s pre-let of 300,000 sq ft at the development has now gone unconditional.
The remaining tenants in 118-119 Fenchurch Avenue are expected to vacate within the next few weeks, paving the way for demolition to begin this summer.
M&G has agreed a 20-year lease.
Negotiations over the building have lasted several years prompting the City of London Corporation to threaten to intervene earlier this year with a compulsory purchase order.
A joint venture between Greycoat and Core is developing the scheme on behalf of Generali.
CBRE is advising the developers; Savills advised Rooney.
jack.sidders@estatesgazette.com