50 Baker Street W1, previously held in a joint venture, comprises three leasehold properties that were acquired in Q3 2021: 38-52, 54-60 and 66-70 Baker Street W1 totalling 122,300 sq ft. The leasehold interests ranged from 38 to 46 years. Together with a fourth property (64 Baker Street) owned by the freeholder, The Portman Estate, these buildings form a 1.0 acre island site capable of significant redevelopment.
In December 2024 we acquired the remaining 50% stake in the scheme from Lazari Investments, our joint venture partner, for £44.4m (£370 psf on consented floor area). This reflects a 4.2% net initial yield at the current passing income of £2.0m pa (based on 50%). Resolution to grant planning consent for a c.240,000 sq ft office-led scheme, which is nearly double the existing floor area, was received in August 2024. Detailed design work is underway. The decision to acquire full control of 50 Baker Street was taken following the pre-letting success at our adjacent 25 Baker Street W1 project and reflects our ongoing confidence in the strength of the West End occupational market. Good progress is being made on a regear of the headleases with The Portman Estate, our freeholder and the owner of 64 Baker Street, to facilitate delivery of this exciting project. This follows our previous regear in 2021 with The Portman Estate at 25 Baker Street. We expect the scheme to deliver an attractive return in line with our current on-site projects. Redevelopment works are expected to commence in H1 2026.
50 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.
- Village
- Marylebone
- Type
- Offices
- Retail
- Size
- 122,300 sq ft
(11,360 sq m) - Value
- £50 - £100 million
- Architects
- AHMM
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03 December 2024
