City of London says yes to 60 Gracechurch Street

Japanese developer Obayashi acquired 60 Gracechurch Street in 2023 but wants to replace it with something bigger.

Danish architect 3XN has put forward proposals that are designed to minimise carbon emissions, both in construction and operation of the building, by avoiding basement excavation and construction and committing to having the building 100% powered by electricity.

Obayashi has partnered with Shard developer Sellar to bring forward the £500m scheme. Construction is now expected to begin in 2026 and complete in 2029.

60 Gracechurch Street will sit on the western edge of the City cluster, providing more than 37,000 square metres of Grade A office space with new, sheltered public realm at ground floor level including widened pavements. The current building is just 11,800 square meters.

Obayashi Properties UK also owns Bracken House and 20 Gracechurch Street (75% stake) in the City of London.

City of London planning and transportation committee chairman Shravan Joshi, said: “It is no coincidence that the City is bucking the global trend of rising office vacancy and stalling construction activity. With a dedicated, solution-focused planning department, combined with clear policy and strategy, we are creating an environment in which developers and investors can help us create a vibrant, thriving Square Mile, for all to enjoy.”

Sellar chief executive James Sellar said: “We have a shared commitment with Obayashi to develop a distinctively designed new landmark office building within the City’s eastern cluster.  We also have a clear aim for 60 Gracechurch Street to be one of the Square Mile’s most sustainable and wellness focused workplaces and today’s decision marks an important step in taking us closer to achieving those goals.  There is an acute shortage of office space across London that is able to meet the exacting requirements of the modern occupier and we firmly believe that being able to satisfy that demand is an important component in London’s ability to attract leading businesses and ensure it maintains its status as a world-class city.”