Derwent 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.
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.
25 Baker Street W1
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.
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.
The Featherstone Building EC1
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).
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 leased.
Paul Williams, Chief Executive of Derwent London, said:
“Over the last few months, there has been a marked increase in confidence and occupier engagement with a busy start to the year. We have agreed £14.7m of new rent from high quality occupiers, which includes a substantial de-risking of 25 Baker Street two years ahead of completion. These lettings demonstrate the importance of well-designed space with strong amenity, environmental credentials and connectivity. There is good further occupier interest across our portfolio.”
Justin Phillips, Partner and London Office Director of Buro Happold, said:
“We are delighted to be taking space in The Featherstone Building, a move that reaffirms our commitment to London. The building strongly aligns with our environmental commitments and provides a place to express our design and consulting capability. With growth in mind, we will design the space for and with our employees, to foster internal and external collaboration, innovation and to be a creative and enjoyable space.”