11th Jul 2014 07:58
LONDON (Alliance News) - Property company Derwent London PLC Friday said it has pre-let 28,000 square foot of newly refurbished offices at 1+2 Stephen Street in London's West End to public relations firm Freud Communications Ltd for an initial GBP1.8 million a year in rent, rising to GBP2.1 million after five years.
In a statement, Derwent said Freud is taking a self-contained unit on the lower floors of the building on a 15 year lease at an initial rent of GBP65 a square foot. The deal includes a fixed increase to GBP75 a square foot after five years and an open market upward-only rent review at year ten.
There is also a tenant break at year 10 and incentives equivalent to an 18-month rent free period, together with a further six months if the break is not exercised.
The building is an office and retail development very close to the Tottenham Court Road crossrail station that's currently being built. Derwent London bought the building in 2010 and is refurbishing it. It has let 45% of the refurbished space after the Freud deal.
The space being let to Freud will be finished by mid-August.
Derwent London shares were up 0.1% at 2,673.90 pence early Friday.
By Steve McGrath; [email protected]; @stevemcgrath1
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