Swedish developer John Mattson Fastighets AB has reportedly agreed heads of terms with advertising agency Leo Burnett over a major office relocation.
The deal centres on the 113,000-sq ft refurbishment of Clearings III, opposite Terence Conran’s Bibendum restaurant in South Kensington, SW3.
Leo Burnett is believed to be taking the 77,000-sq ft offices at a “highly competitive” rent. London & Edinburgh Trust and Warleggan Estates were anxious to secure the agency for their Hammersmith Kensington Village scheme. Their recent letting to Disney at the complex is thought to equate to around £12 per sq ft. About a year ago the Swedes unsuccessfully offered Clearings to Coca-Cola for about £30 per sq ft.
Burnett confirmed that the scheme was “under consideration” and that it was planning to move from its longstanding address, 48 St Martin’s Lane, WC2.
Originally a Harrods warehouse, the Clearings revamp is set to be completed in July next year and will be known as 60 Sloane Avenue. It also includes 36,000 sq ft of shops and restaurants at basement and ground floor.
The original interior of the local landmark is being replaced, while the terracotta facades of the existing L-shaped, five-storey element and the two-storey portion that covered the rest of the site will be retained. A section rebuilt in the 1960s will be knocked down.
Jones Lang Wootton and Egerton are the letting agents.
