Derwent London has confirmed 70,000 sq ft of prelet deals at its White Collar Factory scheme, EC1.
The Office Group and structural engineers AKTII will take a total of five floors in the 16-storey, 237,000 sq ft office tower.
The combined rent totals £4m pa, equating to £57.50 per sq ft – a 12.7% increase on December 2014 estimated rental values for the lower floors.
Both leases have compounded annual inflation increases with an annual floor of 2% and a cap of 4% for at least five years, which takes the rent to between £63.50 and £70 per sq ft at first review.
The Office Group will be taking a 20-year lease, without breaks, on the first to third floors, amounting to 41,300 sq ft. It will pay a total of £2.4m pa with 24 months rent free.
The rent is inflation linked and rises on the fifth and tenth years based on the floor-and-cap arrangement.
AKT II has agreed a 20-year lease on the fourth and fifth floors, totalling 28,400 sq ft, at an initial rent of £1.6m pa.
There are tenant breaks in years 12 and 15 and a rental incentive equivalent to a 24-month rent free period. The initial rent rises with inflation, on the same floor-and-cap basis, at first review.
John Burns, chief executive officer of Derwent London, said: “We have made an excellent start with the letting of almost 25% of the White Collar Factory to two occupiers who share our vision for this exciting multi-tenanted urban campus. The initial rent is above our expectations and sets the tone, which we expect to improve as we let the upper floors of the building.”
Lloyd Dorfman, chairman of The Office Group, added: “We are delighted to have secured space in another prestigious building in London. Our footprint in the capital continues to grow along with the demand for the services we offer. We are looking forward to maintaining our successful relationship with Derwent London as we build another thriving and diverse business community in the White Collar Factory.”
Derwent London was advised by Pilcher Hershman, DTZ and Cushman & Wakefield.
