Ashurst is under offer to prelet M&G Real Estate’s and Exemplar’s entire 320,000 sq ft London Fruit & Wool Exchange development in Spitalfields, E1.
The silver circle law firm has secured a deal ahead of ITV and Wells Fargo, both of which were in negotiations for the scheme, as corporate occupiers rush to secure space in the supply-squeezed City office market.
It has agreed a blend of rents for the space, the highest of which is in excess of £70 per sq ft, on a lease of at least 20 years.
The deal will see Ashurst move out of its main London office at British Land’s and GIC’s Broadwalk House, as well as its space at Hines’ and HSBC’s Broadgate West, both EC2. It occupies just over 200,000 sq ft across the two buildings on leases expiring from 2018.
Ashurst appointed Cushman & Wakefield to advise on a relocation into a single building last summer, shortlisting several potential schemes earlier this year.
It had been widely expected to agree a deal with British Land and GIC for new space at the Broadgate Estate, given its ability to secure an attractive deal which could be aligned with its upcoming expiry. However, the firm was attracted by the emerging Spitalfields location of the Fruit & Wool Exchange, which is a short walk from both Liverpool Street station and the vibrant Shoreditch area.
The deal vindicates M&G’s decision to forward-purchase the scheme for £55m earlier this year as it sought a way to find value in the City office market.
It also continues a remarkable run for Exemplar, which has enjoyed considerable success with recent schemes including Fitzroy Place, W1, which last year landed a record West End prelet to Estée Lauder.
The Bennetts Associates-designed scheme comprises seven floors ranging from 63,000 sq ft to 37,000 sq ft behind a retained 1929 façade.
Demolition work has already started and the project is scheduled for completion in the first quarter of 2018.
CBRE, Knight Frank and JLL are letting agents on the Fruit & Wool Exchange.
The scheme is being built on the site of one of Jack the Ripper’s murders.
