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Our newest major scheme is 25 Baker Street that commenced in October 2021. Following an agreement with The Portman Estate, our 55% interest in a 69-year lease became a wholly owned 129-year headlease on the 206,000 sq ft office element. The ground rent is initially 2.5% rising to 6% in 29 years’ time.

The 298,000 sq ft development includes 41 private residential units, totalling 45,000 sq ft, at 100 George Street, where we are working with Native Land. Seven private units have exchanged for sale and the 7,000 sq ft of affordable housing has been pre-sold.

As part consideration for the unwinding of our previous 55:45 joint venture, the 19,000 sq ft of courtyard retail and 12,000 sq ft of Gloucester Place offices was pre-sold to The Portman Estate.

In February 2023 we announced that PIMCO, the global investment management company, pre-let 106,100 sq ft of office space on levels five to nine at a rent of £11.0m pa which equates to an average of £103 psf. The lease is for a 15-year term without breaks. In August 2023 Moelis pre-let a further 49,200 sq ft of office space at £101.25 psf or £5.0m pa on a 15-year lease with a break on the tenth year. The commercial element of the scheme is now 76% pre-let/sold with the offices at 25 Baker Street 75% pre-let.

The total capital expenditure is estimated at c.£270m and we will draw down monies from the ‘green’ tranche of our revolving credit facility. As well as joining our long-life, loose-fit high quality portfolio the building will be our first NABERS UK certified scheme and we are targeting BREEAM ‘Outstanding’. The (net) ERV is £20.4m (Dec 2023).

25 Baker Street has achieved a Platinum SmartScore certification. A global standard for smart buildings recognising exceptional user experiences, cost efficiency, high standards of sustainability and future-readiness.

Completion is due in H1 2025.