GE Capital is ready to commit to the largest letting in Mayfair for two years.
The corporate division of the giant General Electric conglomerate has emerged as the area’s secret 50,000 sq ft requirement, which is being handled by CB Richard Ellis.
Sources said it had identified Royal & SunAlliance’s former HQ at 30 Berkeley Square, W1, as its preferred location.
The 50,000 sq ft building is one of only a few Mayfair properties large enough to satisfy the requirement for a self-contained building.
RSA is looking to consolidate into the City and to extricate itself from its lease at the building, where it pays over £3m pa – £65 per sq ft – in rent.
Any deal with GE is likely to be well above RSA’s passing rent.
Caxton Asset Management this week agreed to take nearby 40 Berkeley Square at around £80 per sq ft, which would reflect £4m pa at RSA’s building.
Apax Partners and a client of DTZ – believed to be quoted property company Hammerson – are also eyeing RSA’s space.
GE’s requirement, which includes GE Real Estate, has been triggered by the opportunity to break its lease at its current West End HQ, Clarges House, W1, in June.
The company is keen to consolidate several central London offices, including 10 Throgmorton Avenue, EC2.
GE has expanded over the past few years and is set to increase further once its proposed £273m takeover of quoted central London specialist Benchmark is completed in July.
Other options for GE include Grosvenor/Hammerson’s 10 Grosvenor Street, W1, and CREMS’s Curzon Square development on Park Lane, W1.
However, both developers have now decided to let their schemes in sections, which would make them too small for GE’s requirement.
GE Capital is also looking for offices outside London.
It recently activated the largest requirements in both the Thames Valley and Bristol, at 250,000 sq ft and 75,000 sq ft, respectively.
GE, CBRE and RSA’s letting agents – FPDSavills and Spring 4 – declined to comment.
References: EGi News 19/04/04
