Business
Letting Update
Letting Update.
About this update from Derwent London Plc
[{"type":"text","content":"\n \nRNS Number : 9677G Derwent London PLC 13 June 2013 \n \n\n13 June 2013 \n \nDerwent London pre-lets two major developments at Turnmill EC1 and 40 Chancery Lane WC2 to Publicis Groupe for a combined annual rent of £8.8 million\n \nDerwent London plc (\"Derwent London\"/\"the Group\") announces that it has pre-let all the office accommodation, totalling 155,600 sq ft (14,460m2), at Turnmill, 63 Clerkenwell Road EC1 and 40 Chancery Lane WC2, two of its current schemes. The space has been let to agencies within Publicis Groupe, one of the world's leading communications groups.\n \nAt Turnmill, the office rent will be £3.1 million per annum on 58,200 sq ft (5,410m2) leaving 12,300 sq ft (1,140m2) of retail space to be let with a December 2012 estimated rental value (ERV) of £0.4 million. At 40 Chancery Lane, the office rent will be £5.7 million per annum on 97,400 sq ft (9,050m2), which leaves 4,400 sq ft (410m2) of retail space to be let with a December 2012 ERV of £0.1 million. Derwent London's share of the office rent, after deducting a ground rent, will be £7.8 million per annum.\n \nBoth leases are for a term of 20 years with rent reviews every five years and a rent-free period equivalent to 32 months. There is a tenant's break in year 18 which, if exercised, will result in a penalty becoming payable.\n \nDerwent London is currently on site at both developments and they are expected to be handed to Publicis Groupe for fit out in July 2014.\n \nTurnmill is a 70,500 sq ft (6,550m2) new office and retail development on a prominent corner site, which the Group holds freehold, opposite Farringdon station, where a Crossrail interchange is under construction. The office space is arranged over the five upper floors, with a ground floor reception.\n \n40 Chancery Lane will be a 101,800 sq ft (9,460m2) seven-storey building located on a large Midtown corner site. The Group holds a 128-year headlease with a ground rent equal to 18% of the rent received. It has the right to reduce this gearing to 10% through the payment of a premium to the freeholder.\n \nWhilst Turnmill and 40 Chancery Lane are being completed, ...