This month, our client Derwent London has successfully pre-let "most of the remaining office space" at 80 Charlotte Street, London, to The Boston Consulting Group (BCG).
The 80 Charlotte Street development campus totals 380,000 sq ft in three buildings, with 80 Charlotte Street being the largest building at 323,000 sq ft. The other two buildings total 12,000 sq ft of offices and 45,000 sq ft of residential space. The buildings are designed by leading architects Make and construction is due for completion at the end of 2019.
BCG will take the top four floors of the building (5th to 8th floor), comprising 123,500 sq ft, on a fifteen-year lease with five-year rent reviews and an option to break after twelve years, subject to a penalty. Derwent said the initial rent is £10.6 million per annum, slightly above its estimated rental value.
In addition, Arup Group Ltd (Arup) has now committed to occupy a further 19,800 sq ft on the fourth floor on the same terms as its other office space, namely a 20-year lease at an initial rent of £1.5m per annum subject to annual increases of 2.25% for the first 15 years. Arup has also relinquished its option to take the remaining space on that floor.
Including the space Arup previously committed to occupy, Derwent said it has now pre-let a minimum of 276,900 square feet of the Charlotte Street development, or 86% of the total office space in the project, for a rent of £21.8 million per year.
Derwent also said BCG has the right to take up to a further 43,000 square feet, comprising 20,100 square feet on the fourth floor, which was previously under option to Arup, and 22,900 square feet on the ground and lower ground floors. Should BCG take up the additional space, Derwent said the project would become 99% pre-let.
Chief Executive Officer of Derwent London, John Burns said: “We are delighted to welcome The Boston Consulting Group to our portfolio. The fact that two of the world’s leading professional consulting groups have committed to 80 Charlotte Street as their London headquarters so early in the construction process is proof of the quality of our product and its location. It also means that Derwent London has achieved over £35m of new lettings this year surpassing last year’s record by over 13% and our commercial space for delivery in 2019 is now a minimum of 48% pre-let.”
Partner and Managing Director of The Boston Consulting Group, Andy Veitch said: “We are deeply excited to agree space for our future home at 80 Charlotte Street. Derwent and their design team have masterminded a truly spectacular scheme in this quiet and rapidly improving corner of Fitzrovia, close to the buzz of central London. This will be the perfect setting for our people to connect, develop and drive impact through our work. Derwent has led the market in providing us with flexibility and unique opportunities for our growth and our occupation strategy. We now look forward to creating our new home at 80 Charlotte Street, building on our workplace strategy, with the same innovative spirit as in New York, Los Angeles, Milan and our other offices.”
Pilcher Hershman, JLL and CBRE acted as joint leasing agents for 80 Charlotte Street.
Please read full press release here
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