Business
Derwent London Leasing Update
Derwent London Leasing Update.
About this update from Derwent London Plc
[{"type":"text","content":"\n \n \n \n \n \n \n \n \n \n \n28 February 2023\n \n \n \n Derwent London plc\n \n (\"Derwent London\" / \"the Group\")\n \n \n \n \n \n \n STRONG LEASING START TO 2023\n \n \n \n \n \nDerwent London is pleased to announce that we have signed 10 leases since the start of 2023 for combined rent of £14.7m. This includes the first pre-let at 25 Baker Street W1 and the third major occupier for The Featherstone Building EC1.\n \n \n \n \n \n The average lease term to break (WAULT) of these transactions is 13.4 years. On a proforma basis our operational EPRA vacancy rate would reduce to 5.0%, from 6.4% at December 2022.\n \n \n \n \n \n \n Transaction details\n \n \n \n 25 Baker Street W1\n \n \n PIMCO, the global investment management company, has pre-let 106,100 sq ft on levels five to nine at our 25 Baker Street W1 on-site development (298,000 sq ft). The rent of £11.0m equates to an average £103 psf. The lease is for a 15-year term without breaks. The project does not complete until H1 2025.\n \n \n \n \n \n The project's strong sustainability credentials played an important role in PIMCO's decision. This includes being a net zero carbon building, with a target of BREEAM Outstanding and our first NABERS-rated building. PIMCO has an option to expand to include level four (24,700 sq ft) which can be exercised up to 12 months prior to practical completion. The commercial element of 25 Baker Street is now 56% pre-let/sold, excluding the pre-completion expansion option. The courtyard retail and Gloucester Place offices have been pre-sold to the freeholder, The Portman Estate.\n \n \n \n \n \n The Featherstone Building EC1\n \n \n Buro Happold, the global engineering consultancy, has leased 31,100 sq ft on levels 5 to 8 at The Featherstone Building EC1. The rent is £2.3m or £74 psf, in line with December 2022 ERV. The lease is for 15 years with a break at year 10 (and a break at year five on level eight).\n \n \n \n \n \n Buro Happold is taking space in Old Street, recognising the role this high-quality, net zero carbon space with our second occupier amenity DL/28.Old Street, will have on its ability to retain and attract talent. The location will also strengthen connectivity to its design partners and supply chain. The building is now 59% let by area, with only three floors remaining to be le...