London Museum of Photography headed to Whitechapel – Derwent London has announced that it has pre-let the lower ground floors and a new office pavilion at The White Chapel Building, 10 Whitechapel High Street E1, to Fotografiska. Fotografiska runs the world renowned photography museum in Stockholm and will use the space for Fotografiska – The London Museum of Photography. This is their first gallery outside Stockholm and will add another important cultural and leisure hub to the fast improving Whitechapel area.
The initial rent is GBP2.4m per annum or GBP27 per sq ft. Fotografiska will occupy the whole of Phase 2 comprising 89,000 sq ft on a 15-year lease with five-year rent reviews based on annual RPI increases with a cap and floor, and with a break in year 12. The rent free period is equivalent to 30 months on a 12-year lease, rising to 36 months on a 15-year term. Completion of Phase 2 is expected in H2 2018.
The Group acquired the vacant White Chapel Building in December 2015. In the following nine months, Derwent London refurbished the 185,000 sq ft of above ground office space in Phase 1 creating a new public entrance and an atrium, which is served by a new café and bar. Phase 1 was fully let earlier this year and now hosts a broad mix of occupiers including Government Digital Service, Wilmington, Perkins+Will, Unruly, Reddie & Grosse, Shipowners’ Club, ComeOn! and Lebara. Derwent say that, as a result, they have regenerated a tired office building into a thriving Tech Belt hub, which will be enhanced with the new lower ground floor use.
John Burns, Chief Executive Officer of Derwent London, said: “We are very excited to welcome Fotografiska – The London Museum of Photography to The White Chapel Building. We believe their arrival will be a major benefit to the area and Fotografiska’s character endorses the Group’s focus on good design. This pre-let means that we will have successfully let the entire property.”
Tommy Rönngren, Founding partner and Chairman of the Board of Fotografiska London, said: “Derwent is a developer with great creative vision and we chose to work with them because of the combination of the building itself and the creative heritage of Derwent. Fotografiska has for a long time been searching for suitable facilities in London, one of the world’s most dynamic cities when it comes to photography. Whitechapel, which is one of London’s most dynamic areas, will be a perfect location. It will be really exciting to bring the concept of Fotografiska to London.”
In other news, Derwent has released its interim results, showing a 0.9% increase in EPRA NAV for the six months ended 30 June 2017, a 22.3% increase in EPRA earnings per share (partly down to a record six months of lettings totalling £23.4m – 0.5% ahead of end 2016 ERV) and a 25% increase in the interim dividend.
DLN : London Museum of Photography headed to Whitechapel