Private equity firm TDR Capital is pulling out of the Mayfair hedge fund heartland and relocating to a new Howard ?de Walden Estate scheme in Marylebone, W1.
The firm is understood to have gone under offer for the lower ground and floors two, three and four at 20 Bentinck Street, W1.
It is paying on average £75 per sq ft for the space, which totals 25,000 sq ft, on a 10-year lease. The Howard de Walden Estate completed the asset in the final quarter of 2013.
TDR is expanding from 13,000 sq ft at 1 Stanhope Gate, W1, in the heart of Mayfair – traditionally the location of choice for hedge funds and private equity companies.
In the eight months to 31 August 2013, private equity firms accounted for 24% of all office take-up in Mayfair and St James’s. Hedge funds accounted for 31%, according to Cushman & Wakefield.
However, the agent said last year that low vacancy rates in the area, coupled with soaring rents, which have hit as much as £135 per sq ft, are prompting some firms to now look at parts of Soho and Marylebone for their headquarters.
Cushman & Wakefield and GN2 are letting agents on 20 Bentinck Street; H2SO is advising the tenant.
joanna.bourke@estatesgazette.com
