25 Baker Street

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. 16 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 January 2025 we announced that all 204,300 sq ft of office space at the development was fully pre-let to five tenants. In 2023 we announced pre-lets to PIMCO, the global investment management company, and to global independent investment bank Moelis. Subsequently we have let to three more occupiers including Cushman & Wakefield and Sculptor Capital Management, taking the office rent roll to £21.2m. Ahead of completion later in H1 2025, these lettings highlight the strength of demand for high quality, design-led and amenity-rich spaces in the right location with class-leading sustainability credentials. With rents across the building ranging from £98 to £113 psf, the £104 psf average is a 16.5% premium to the appraisal ERV, setting a new benchmark for the area. The weighted average lease term (to break) is 13.5 years, with over 70% on 15-year terms certain.

In addition to the office lettings, we are encouraged by the level of interest for the retail and F&B units which form an integral part of the scheme’s amenity offering. Two of the six units are under offer, with discussions ongoing on further units.

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 £21.3m (Dec 2024).

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.

https://www.25bakerstw1.london