The Crown Estate announced last week that they have signed Telefónica Digital and Halfords Media to over 7,500 m2 (80,000 ft2) of office space at the AirW1 scheme, part of the Quadrant 3 redevelopment just off the southern end of Regent Street. The mixed use scheme, which completed four months ahead of schedule in November, is now by rental value over 60 per cent let.
Contracts have been exchanged with Telefónica and in February it will commence fitting out the entire fourth and fifth floors, totalling 4,700 m2 (51,000 ft2), with a view to moving in over the summer. The space will be the global headquarters of Telefónica's new digital division which has been formed to lead the company's growth in the digital world. Approximately 400 employees will be based in the office, which will also be a showcase for technology innovation for customers and partners. In January Halfords Media will start fitting out the entire third floor, which totals 2,800 m2 (30,000 ft2). Both companies have agreed 15 year leases for undisclosed rents.
In November, Generation Investment Management, the investment management firm dedicated to long term, sustainable investing, also signed a 15 year lease for AirW1's 2,000 m2 (21,300 ft2) top floor.
AirW1 is the main office element of our 25,100 m2 (270,000 ft2) Quadrant 3 development and comprises over 16,700 m2 (180,000 ft2) of prime Grade A office space over seven floors. It is the single largest new office building to come to market in the area until at least 2013 and the central West End's only office development scheme over 5,600 m2 (60,000 ft2) to complete before quarter three 2012.
Commenting on the deals, David Shaw, head of regent street portfolio, said: "Our AirW1 offices are part of our most significant project to date and signing a global brand like Telefónica reaffirms Regent Street's position as the central West End's leading place for business. The success of our Quadrant 3 lettings demonstrates the quality of the building and the benefits of our long-term approach, which delivered AirW1 to a market where supply of this type of space here in the core West End is virtually non-existent."
"London is undoubtedly at the forefront of the current digital revolution and was a natural choice for us to establish our new headquarters in," said Matthew Key, chairman & CEO of Telefónica Digital. "London is arguably the biggest hub for technology start ups outside of Silicon Valley and a global centre for the media and advertising industries. It attracts the best talent and, for an international business such as ours, acts as a unique bridge between Europe and the Americas. Our decision to invest in having a significant presence in central London's Regent Street is clear evidence of our determination to succeed in the digital space."
Quadrant 3 includes 8,400 m2 (90,000 ft2) of flagship retail and restaurant space, and nine new homes. It is transforming its public surroundings by creating a large new pedestrian area on Glasshouse Street. The scheme is part of the £1 billion, 20 year investment strategy for Regent Street and embodies the commitment to sustainable development. It houses a combined cooling, heat and power (CCHP) unit with Europe's most energy efficient fuel cells; this generates around 10-20 per cent of the energy needed for both Quadrant 3 and the redevelopment next door of the Café Royal as a 5 star hotel.
Source: thecrownestate.co.uk