(Alliance News) - Great Portland Estates PLC on Wednesday said it has now leased all the space at its 18 Hanover Square building in London after a deal with a financial services company, a vote of confidence in city centre offices.
The undisclosed company agreed to lease 16,500 square feet of space. It becomes the third and final tenant of the nine-storey building, after KKR & Co and Glencore PLC agreed to rent a total of 111,000 square feet.
The total contracted rent for the building, which was completed less than six months ago, is now GBP14.8 million, with a weighted average lease term of 15.7 years.
Shares in Great Portland were up 1.8% to 728.50 pence in London.
This will be a welcomed boost for the property developer and investor, whose portfolio consists solely of central London buildings. The pandemic has threatened to cut demand for city-centre offices for years to come, if more people decide to work from home for at least part of the week.
18 Hanover Square is part of a development which includes other offices, retail space and luxury apartments, located next to Bond Street Station, which will be on the new Elizabeth Line. The development is owned by a joint venture with the Hong Kong Monetary Authority, in which Great Portland has a 50% stake.
"The final occupier in 18 Hanover Square faced competition for the space and their commitment is a welcome reminder of the continuing strength of London's core office markets. We have further interest in the remaining offices, which we expect to conclude in the near future," Head of Office Leasing Simon Rowley said.
By Ivan Edwards; ivanedwards@alliancenews.com
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