The City of London has given the green light to a striking new tower at 130 Fenchurch Street, a site long occupied by the dated Fountain House. Backed by Aviva Investors and led by developer CO-RE with Wilkinson Eyre as architect, the £300 million scheme will deliver more than 57,000 square metres of Grade A office space, along with new public routes, retail and food outlets, and a series of terraces offering views across the Square Mile. Demolition is expected to begin in 2026, with completion anticipated by 2030.
The design has been deliberately staggered to soften its impact on the skyline and to protect sight lines to St Paul’s Cathedral and the Tower of London. Officials were unanimous in their approval, citing the project’s public benefits as well as its contribution to the City’s target of delivering 1.2 million square metres of new office floorspace by 2040. At ground level, the scheme will open up new pedestrian connections linking Fenchurch Street to Leadenhall Market and surrounding lanes, while public gardens and terraces high above the street are intended to make the building more than just a workplace.
For the City, the decision sends a signal that it remains committed to expanding its supply of high-quality office space even as hybrid working continues to reshape demand. Vacancy rates in the best new buildings are now under one per cent, and demand for sustainable, flexible offices has allowed developers to push ahead with confidence. Wilkinson Eyre’s scheme is positioned to capture that demand, offering daylight-optimised floorplates, wellness features and environmental standards that older office stock increasingly cannot match.
The benefits, however, do not come without trade-offs. Smaller landlords with outdated buildings may struggle to compete as tenants gravitate towards modern towers. The project is also certain to cause disruption during the years of demolition and construction, and its scale has raised questions about wind effects, congestion and the broader character of the area. Yet for the City Corporation, the balance between heritage protection and the need for growth has tipped firmly towards building.
While a main contractor has not yet been announced, the project is likely to attract bids from the biggest firms with experience of deep basements and superstructure work in central London. The value of the contract will place it among the most significant in the UK pipeline, and those able to meet the sustainability and logistical demands of the site will be in strong contention.
What 130 Fenchurch Street represents, beyond its immediate design and cost, is a statement of confidence. It shows institutional investors are still prepared to commit large sums to the Square Mile despite high interest rates, rising construction costs and global uncertainty. If the scheme proceeds smoothly, it could become a model for how to combine commercial viability with public amenity and sustainability. If it falters, it will serve as a reminder that even in the City’s golden cluster, ambition can collide with economic reality.