Derwent London is pleased to announce that it has regeared its lease with Burberry, the FTSE 100 British luxury brand, at Horseferry House SW1, extending the lease term to 2043 and incorporating two new five-yearly fixed uplifts.
Burberry’s lease has been extended from 2038 to 2043 (without breaks), increasing the unexpired term to an attractive 17.6 years. New fixed uplifts replace the previous 2033 rent review and 2038 expiry, giving the Group visibility on future income. Under IFRS, the fixed uplifts will be recognised on a straight-line basis through the income statement, resulting in an immediate increase in earnings of c.£0.9m pa.
Paul Williams, Chief Executive of Derwent London, said:
“We have a strong, long-standing relationship with Burberry, one of our largest occupiers, who recently completed a comprehensive refit of Horseferry House. I am pleased that we have agreed to extend their lease to 2043, reflecting their long-term commitment to the building which serves as their global HQ. Since the start of the year, we have completed regear and renewal activity totalling £19.2m, averaging 5.1% above the previous rent.”