Derwent London is pleased to announce that it has pre-let the entire proposed 127,000 sq ft (11,800m2) 1 Page Street, London SW1 to Burberry, the global luxury company.
The tenant will pay a rent of £5.3 million per annum at this 11-floor building, comprised of £50 per sq ft (£540 per m2) on the top three floors and £45 per sq ft (£485 per m2) on a typical mid-level floor. The lease is for a 20-year term with a tenant-only break option in year ten, rent reviews every five years and a rent-free period equivalent to 22 months. The first rent review will be subject to a minimum uplift to £5.7 million per annum.
Derwent London acquired 1 Page Street, a building of 118,000 sq ft (10,960m2), in March 2011. In consultation with Burberry, the Group has modified its original refurbishment plans for the building and the new scheme will increase the floor area by 8% whilst the existing glazed exterior will be replaced with an elegant masonry façade. An amendment to the existing planning consent has been submitted and approval is anticipated in the next few months. The lease is conditional on obtaining satisfactory consent. Completion is estimated for mid-2013 and capital expenditure to complete the refurbishment is forecast at £30m.
Burberry has an established presence in the area with its global headquarters located at Horseferry House, owned by Derwent London, immediately opposite Page Street.
John Burns, Chief Executive Officer at Derwent London, commented:
“We are delighted that Burberry, an iconic British brand and valued existing tenant, has chosen to expand its presence in our portfolio. Pre-letting Page Street underlines our strong working relationships with our tenants. The building will be substantially reconfigured and extended and will provide a high quality, contemporary working environment.”
Cushman & Wakefield and Robert Neils & Co. acted for Burberry whilst Derwent London was represented by Jones Lang LaSalle and Drivers Jonas Deloitte.
