The Office Group, a leading provider of design-led and flexible offices and co-working spaces, and structural engineers AKT II will take five floors in the 16-storey office tower. The combined rent totals £4.0m per annum, or £57.50 per sq ft, which is 12.7% above the Estimated Rental Value on these lower floors at December 2014. Both leases have compounded annual inflation increases with an annual floor of 2% and a cap of 4% for at least five years which takes the rent to between £63.50 and £70.00 per sq ft at first review.
The Office Group will be taking a 20-year lease, without breaks, on the first to third floors, amounting to 41,300 sq ft. The rent is £2.4m per annum with rental incentives equivalent to a 24 month rent free period. The rent is inflation linked and rises on the fifth and tenth years based on the floor and cap arrangement.
AKT II has agreed a 20-year lease on the fourth and fifth floors, totalling 28,400 sq ft, at an initial rent of £1.6m per annum. There are tenant breaks in years 12 and 15 and a rental incentive equivalent to a 24 month rent free period. The initial rent rises with inflation, on the same floor and cap basis, at first review.
White Collar Factory will be a 237,000 sq ft landmark office building that incorporates innovative and sustainable design with 3.5m high ceilings, concrete core cooling, openable windows and the ability to accommodate flexible occupation. The tower will have a communal roof terrace with a running track and forms part of a new urban campus that is complemented by five low-rise buildings and new public realm. These latter properties provide 39,000 sq ft of office space, 9,000 sq ft of restaurant and retail space and 8,000 sq ft of residential. The scheme, designed by leading architects AHMM, is on schedule and due to complete in Q3 2016.
John Burns, Chief Executive Officer of Derwent London, commented:
“We have made an excellent start with the letting of almost 25% of the White Collar Factory to two occupiers who share our vision for this exciting multi-tenanted urban campus. The initial rent is above our expectations and sets the tone, which we expect to improve as we let the upper floors of the building.”
Lloyd Dorfman, Chairman of The Office Group, commented:
“We are delighted to have secured space in another prestigious building in London. Our footprint in the Capital continues to grow along with the demand for the services we offer. We are looking forward to maintaining our successful relationship with Derwent London as we build another thriving and diverse business community in the White Collar Factory.”
Derwent London was represented by Pilcher Hershman, DTZ and Cushman & Wakefield.