Agent Savills is to move its UK headquarters to Great Portland Estates’ redevelopment of Marcol House, north of Oxford Street.
Savills will move its West End teams, based at offices in Lansdowne House and Grosvenor Hill, to the new premises at 33 Margaret Street, W1, in early 2013. It will occupy most of the building, taking five floors, equating to circa 64,000 sq ft.
It will become the latest in a steady stream of firms to move out of the traditional agency heartland in Mayfair.
Savills CEO Jeremy Helsby said: “This pre-letting of 33 Margaret Street is a strong expression of confidence in the growth of the Savills business, and in London as a global financial centre. This move will provide Savills with an exciting new London headquarters building for the future benefit of both our staff and our clients.”
The building totals 102,291 sq ft, which includes 95,165 sq ft of offices and 7,126 sq ft of retail and was acquired as a development opportunity by GPE from Dubai World in November 2009. Building works are expected to be completed in October 2012.
Savills will take five separate 20-year leases of ground to part-fifth floors, totaling 64,142 sq ft and will pay an initial rent of £4.4m per annum, after a 30-month rent-free period.
The initial rent equates to £68.60 per sq ft on average. The fourth and part-fifth floor leases, which account for 22,061 sq ft and £1.67m per annum, will be subject to a tenant-only option to break at the tenth year. If the breaks are exercised there is a break penalty payable by the tenant equivalent to 15 months passing rent.
The pre-letting to Savills will leave only 31,023 sq ft available on the part-fifth, sixth and seventh floors.
GPE has granted Savills the right to lease additional space in the building, if it requires it, on market terms for the sixth and seventh floors until June 2012, and on the remaining part-fifth floor on the same terms as the initial part fifth floor lease, until practical completion.
GPE chief executive Toby Courtauld said; “We are delighted to welcome Savills to 33 Margaret Street. As one of the UK’s pre-eminent real estate advisory businesses, its move provides a strong endorsement for the quality of the building and we look forward to working with the Savills team to create their new London headquarters.”
GPE was represented by H2SO and Knight Frank. Savills represented itself.
julia.cahill@estatesgazette.com
