Burberry has confirmed it has signed a prelet for the whole of Derwent London’s 127,000 sq ft 1 Page Street, SW1 development.
The British retailer will pay a rent of £5.3m pa at the 11-storey building, comprising £50 per sq ft on the top three floors and £45 per sq ft on a typical mid-level floor.
The 20-year lease has a 10-year break option, and the first rent review will be subject to a minimum uplift to £5.7m pa.
Derwent acquired the original asset in March 2011 for £45m from Stenham Property and GE Capital Real Estate. It has been consulting with the retailer and designer on plans for the property.
John Burns, chief executive officer at Derwent, said: “We are delighted that Burberry, an iconic British brand and valued existing tenant, has chosen to expand its presence in our portfolio. Preletting 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.”
Completion is due in mid 2013. Capital expenditure to complete the refurbishment is forecast at £30m.
Burberry leases Derwent’s 160,000 sq ft Horseferry House in SW1.
Cushman & Wakefield and Robert Neil & Co acted for Burberry. Derwent was advised by Jones Lang LaSalle and Drivers Jonas Deloitte.
joanna.bourke@estatesgazette.com
