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Our newest major scheme is 25 Baker Street (previously 19-35 Baker Street), totals 298,000 sq ft, which 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 development includes 45,000 sq ft of residential for sale at 100 George Street W1, where we are working with Native Land, plus affordable housing. 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 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 we announced that Moelis had pre-let a further 49,200 sq ft of office space at £100 psf or £4.9m pa on a 15-year lease with a break on the tenth year. The commercial element of 25 Baker Street is now 76% pre-let/sold, excluding the pre-completion expansion option.

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 £20.0m (June 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.