Baker Street, a joint venture development between Derwent London and The Portman Estate, will be a major central London scheme creating a mix of uses in the heart of London’s West End.
The project will occupy an entire urban block, flanked by Baker Street and Gloucester Place, and has given us the chance to design at a significant urban scale to enhance connectivity and access, revitalise street presence and maximise opportunities to create attractive new public realm. A public arcade beneath the centre of the office block will lead to a new landscaped retail courtyard, and a route through the Georgian terrace on Gloucester Place.
The project features a 200,000 sq ft office building, 42 residential apartments, 10 affordable housing units developed in conjunction with Native Land, and 20,000sq of prime retail space. A public arcade beneath the centre of the office block will lead to a new landscaped courtyard, and a route out through the ‘Georgian’ terrace on Gloucester Place.
The development will be a significant contribution to Derwent London’s high quality, ‘long-life, loose-fit portfolio’, and will be the first of its NABERS UK certified schemes, targeting energy-efficiency. The Net Zero Office building project will be all-electric, with natural ventilation, and is targeting an ambitious range of industry benchmarks including a BREEAM excellent rating, Well ‘Enabled’, Wired Platinum, zero waste to landfill, and an EPA A rating. It will use Derwent London’s Smart enabled systems to monitor and regulate the building’s performance in use.
A highly contextual design will reference the surrounding streetscapes of Georgian terraces and mansion blocks. The project will feature an efficient post-tensioned RC structure on a 7.5m grid and a high quality palette of materials including Portland Stone, York Stone paving and hand-made bricks. Designed to appeal to the next generation of office occupiers, 25 Baker Street will offer an elegant and contemporary scheme with lots of amenity, roof gardens and enhanced public realm.
Completion is expected in 2025.
Our newest major scheme is 25 Baker Street (previously 19-35 Baker Street), totals 298,000 sq ft, which commenced in October 2021. Following an agreement with The Portman Estate, our 55% interest in a 69-year lease became a wholly owned 129-year headlease on the 206,000 sq ft office element. The ground rent is initially 2.5% rising to 6% in 29 years’ time.
The development includes 45,000 sq ft of residential for sale at 100 George Street W1, where we are working with Native Land, plus affordable housing. As part consideration for the unwinding of our previous 55:45 joint venture, the 19,000 sq ft of courtyard retail and 12,000 sq ft of Gloucester Place offices was sold to The Portman Estate.
In February 2023 we announced that PIMCO, the global investment management company, pre-let 106,100 sq ft of office space on levels five to nine at a rent of £11.0m which equates to an average of £103 psf. The lease is for a 15-year term without breaks. PIMCO has an option to expand to include level four (24,700 sq ft) which can be exercised up to 12 months prior to practical completion. The commercial element of 25 Baker Street is now 56% pre-let/sold, excluding the pre-completion expansion option.
The total capital expenditure is estimated at c.£270m and we will draw down monies from the ‘green’ tranche of our revolving credit facility. As well as joining our long-life, loose-fit high quality portfolio the building will be our first NABERS UK certified scheme and we are targeting BREEAM ‘Excellent’. The (net) ERV is £18.4m (December 2022).
Completion is due in H1 2025.
Derwent London (c)
25 Baker Street occupies an entire island site and provides approximately 205,000 sq ft on and sits on the west side of this busy and famous thoroughfare. As part of the development the Landlord is also creating a new shopping and leisure area which extends through to Gloucester Place.
The area is already well served by numerous world famous hotels, shops and restaurants such as The Chiltern Firehouse, Trishna and The Nobu Hotel Portman SquareDisclaimer
We have created an automatic ranking system for new-build homes in London based on several critical features around the development, like schools, parks, and transport infrastructure.
We have developed this new analytical tool to calculate the scores based on the location data. Note that AutoScore values are not set by us or anyone else – everything happens automatically.
PIMCO, the global investment management company has pre-let 106,100 sq ft of office space at 25 Baker Street scheme, reports Ashwell London.
The rent for the office space on levels five to nine is £11.0m which equates to an average of £103 per sq ft.
The lease is for a 15-year term without breaks, and PIMCO has the option to expand to include level four (24,700 sq ft) which can be exercised up to 12 months prior to practical completion.
The 298,000 sq ft mixed-use scheme in Marylebone, which aims to meet industry-leading sustainability and digital standards, is now 56% pre-let.
100,000 sq ft of best-in-class offices are still available with c.24,000 sq ft floors that provide stunning workspace with natural daylight and flexibility for all occupiers to adapt to open plan or cellular layout, thanks to 360 degrees of windows.
Slaughter and May advised Derwent London.
Paul Williams, Chief Executive of Derwent London, commented:
"Over the last few months, there has been a marked increase in confidence and occupier engagement with a busy start to the year. We have agreed £14.7m of new rent from high-quality occupiers, which includes a substantial de-risking of 25 Baker Street two years ahead of completion. These lettings demonstrate the importance of well-designed space with strong amenity, environmental credentials and connectivity. There is good further occupier interest across our portfolio."
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