19-35 Baker Street

Our most recent major project is the 19-35 Baker Street development, which commenced in October 2021, totaling 298,000 sq ft. After reaching an agreement with The Portman Estate, our 55% interest in a 69-year lease has transitioned into a wholly-owned 129-year headlease covering the 206,000 sq ft office component. The initial ground rent stands at 2.5%, with an increase to 6% after 29 years.

The project also encompasses 45,000 sq ft of residential space for sale at 100 George Street W1, where we are collaborating with Native Land, in addition to providing affordable housing. Most of the remaining space will be pre-sold to The Portman Estate as part of the arrangement for dissolving our previous 55:45 joint venture.

The estimated total capital expenditure for this project is around £270 million, and we will utilize funds from the 'green' tranche of our revolving credit facility. This building will not only become part of our long-term, high-quality portfolio but will also be our first NABERS UK certified development, with a target of achieving a BREEAM 'Excellent' rating.

The project is scheduled for completion in the first half of 2025.

Laing O’Rourke has been appointed to build the mixed-use 19-35 Baker Street development in Marylebone, London W1.

Construction contracts worth £158m have been signed between Derwent London and Laing O’Rourke for the 410,000 sq ft development.

The works will start in June this year and the project is expected to be completed H1 2025.

The original design of the building has been modified using Laing O’Rourke’s carbon calculator to identify the carbon intensity of every component of the building and assess changes to the model.

Designed by Hopkins Architects, the development will reduce embodied carbon through DfMA, sustainable procurement, and construction phase efficiencies. During the tender stage, Laing O’Rourke were able to illustrate that the MMC approach is set to cut the main works programme by 16 weeks to 125 weeks

Paul McNerney, Director of UK Building, Laing O’Rourke commented: “We are delighted to have been chosen to deliver 19-35 Baker Street, further strengthening our relationship with Derwent London.

“We have collaborated closely with the client team for the past twelve months, and by using our product set we have co-created a DfMA solution that delivers the architectural intent of the building, sustainability objectives and programme gains.

“We are excited to get started and bring to life an exciting vision and a building that supports Derwent’s sustainability strategy.”

Richard Baldwin, Director of Development, Derwent London, added: “We are pleased to be working with Laing O’Rourke once again who we believe have the capabilities to drive project certainty through pioneering modern methods of construction.

We are very excited by the prospects for 19-35 Baker Street.”