Slaughter and May is advising Derwent London on the re-gear of its interests at 50 Baker Street with the freeholder, The Portman Estate, to provide a new 125-year headlease (from scheme completion) for its development.
The new headlease consolidates ownership of the existing buildings on the site into a single headlease, including The Portman Estate’s 62-64 Baker Street, with a ground rent of 7.5% of gross income from completion. The development will comprise 204,000 sq ft of highly efficient office space, in addition to ground floor retail and 17 private residential flats, with a focus on high standards of sustainability and design.
The re-gear follows Derwent London’s acquisition of the site from Lazari Investments, on which we also advised.
Paul Williams, Chief Executive of Derwent London, said: “Building on the success at our 25 Baker Street project opposite and the strength of our longstanding partnership with The Portman Estate, I am delighted that we have agreed a new headlease at 50 Baker Street, enabling a start on site next year. The shortage of well-located Grade A space is becoming increasingly pronounced, particularly in Marylebone. That depth of demand, combined with the building’s quality and prime location, supports a compelling rental outlook which sets the stage for strong returns.”