Derwent London is pleased to announce that it has successfully agreed a new 125-year headlease (from scheme completion) for its 50 Baker Street W1 development with the freeholder, The Portman Estate. This follows receipt of resolution to grant planning consent in August 2024 for this best-in-class 236,000 sq ft project. We have also appointed a contractor under a pre-construction services agreement, ahead of the main construction contract being placed in H1 2026.
The new headlease consolidates ownership of the existing buildings on the site into a single headlease, with a ground rent of 7.5% of gross income from completion. The Portman Estate will contribute its ownership interest of 62-64 Baker Street, giving Derwent London full control of the island site. No upfront consideration is payable. Similar to the structure agreed at our nearby 25 Baker Street project, part of the retail element will be sold back to the freeholder.
This architecturally striking building, designed by AHMM, comprises 204,000 sq ft of highly efficient office space, in addition to ground floor retail and 17 private residential flats.
In line with the Group’s high standards in terms of sustainability and design, this is an exemplary project with a class-leading embodied carbon intensity of c.530 kgCO2e/sqm, well below the GLA’s target. The scheme incorporates a variety of circular economy measures, including a pioneering engineering approach to the re-use of existing reconditioned concrete slabs. The use of off-site manufacturing and the investigation of innovative concrete mixes will further reduce embodied carbon, while improving the overall build quality. The building, which is targeting a 5-star NABERS UK rating, has an enhanced concrete core cooling system and openable windows throughout.
Paul Williams, Chief Executive of Derwent London, said:
“Building on the success at our 25 Baker Street project opposite and the strength of our longstanding partnership with The Portman Estate, I am delighted that we have agreed a new headlease at 50 Baker Street, enabling a start on site next year. The shortage of well-located Grade A space is becoming increasingly pronounced, particularly in Marylebone. That depth of demand, combined with the building’s quality and prime location, supports a compelling rental outlook which sets the stage for strong returns.”
Oliver Fenn-Smith, Chief Executive of The Portman Estate, said:
“We are proud to be working with Derwent London to deliver high-quality office, residential and retail space at 50 Baker Street – further enlivening Marylebone and our vision for the future of the Estate. Commencement of the development will mark an exciting milestone in our ongoing partnership with Derwent London following the success of 25 Baker Street and Loxton Walk.”