Derwent London has pre-let 28,000 square feet, of newly refurbished office space, at its 1-2 Stephen Street property in W1, London, to public relations firm Freud Communications. The lease is for 15 years with an initial rent of £1.8m pa, rising to £2.1m pa after five years, with an open market upward-only rent review, or tenant break, at year ten.
Derwent purchased 1-2 Stephen Street in 2010 and is undertaking a comprehensive repositioning of the building. Phase 1 comprises a refurbishment of the 102,000 square feet of office space and redevelopment of the ground floor streetscape. Following the deal with Freud, 45% of the refurbished office space has now been pre-let. The second phase is a regeneration of the building’s retail space, which is already underway. Derwent is the largest London-focused real estate investment trust (REIT). It has a portfolio of commercial real estate valued at £3.4bn (as at 31 December 2013).