Derwent London has completed the construction and office lettings of its 380,000 sq ft mixed-use development at 80 Charlotte Street, the largest ever undertaken by the Group and its first net-zero carbon development.
Completing construction during lockdown proved challenging but was well managed by Multiplex, alongside the Derwent London team in collaboration with the incoming occupiers Boston Consulting Group (BCG), Arup Group and Elliott Wood.
The project is 90% let for rent of £24.3m.
As part of the Group’s support for the NHS during the COVID-19 crisis, 16 furnished flats have been made available at no cost for the remainder of the year to University College Hospital.
Paul Williams, Chief Executive of Derwent London, commented: “We are delighted to have achieved one of our main targets for 2020 with the practical completion of 80 Charlotte Street. This exceptional building, attracting major international businesses, demonstrates the resilience of good office space with adaptable internal areas and a focus on wellbeing and long-term sustainability. We are also pleased to be able to support local hospital workers, whose continuing service inspires us all.”
Andy Veitch, Managing Director & Partner at Boston Consulting Group, added: "BCG looks forward to making 80 Charlotte Street our new home in mid-2021. Now that construction has finished, we are excited to design the new office in line with our broader strategy to lower our carbon footprint, while bringing together our various business units in a dynamic and inspiring environment that maximises collaboration between our people and our clients.”
Geoff Hunt, Chief Operating Officer, UKIMEA at Arup commented: "The 80 Charlotte Street office reflects our commitment to sustainable integrated design fit to inspire staff and visitors. The new offices provide access to open space and greenery and reflect our aspirations for low operational carbon and to be part of the team to build one of the UK’s first all-electric commercial buildings. We look forward to 80 Charlotte Street being part of our wider London estate.”
Baroness Julia Neuberger DBE, Chair of UCLH, said: “We are so grateful to Derwent for allowing us to use these apartments for staff at what has been a very tough time at UCLH. This will transform the lives of staff who cannot go home because family are shielding, or who just need to be near the hospital. This could not have come at a better time. Thank you, on behalf of us all.”
17/06/2020 13:48 by Buildington
The commercial space at Charlotte House is 92% pre-let at £24.3m pa. Expected completion H1 2020.
Via Derwent London plc Interim Results 2019 derwentlondon.com.
08/08/2019 22:45 by Buildington
Derwent London's 80 Charlotte Street mixed-use scheme was topped out this week.
Representatives from the Multiplex team and Derwent London came together at the topping out ceremony, where we laid the last slab and hoisted a yew tree. This follows the old Scandinavian tradition of placing a tree on top of a newly built structure to appease the tree-dwelling spirits that may have been disturbed during the construction.
With the building topped out, Multiplex is now moving towards the final stages of the project. The office space is already 84% pre-let and the development is scheduled to complete in early 2020.
04/05/2019 17:28 by Buildington
22 apartments at the 80 Charlotte Street development are marketed as Asta House.
one, two and three-bedroom apartments and two penthouses marketed by CBRE.
Amenities include a concierge and lift access.
Completion expected from 2019.
Register your interest at astahouse.com
05/07/2018 22:22 by Buildington
86% of the office space at 80 Charlotte Street is pre-let.
Source: Q1 2018 Business Update by Derwent London derwentlondon.com
10/05/2018 11:05 by Buildington
Derwent London has pre-let most of the remaining office space at 80 Charlotte Street W1 to The Boston Consulting Group BCG.
BCG is taking the top 5th to 8th floors comprising 123,500 sq ft on a fifteen-year lease with five-year rent reviews and an option to break after twelve years subject to a penalty. The initial rent is £10.6m per annum, slightly above ERV.
Arup Group has also now committed to take a further 19,800 sq ft on the 4th floor on the same terms as its other office space, a twenty-year lease at an initial rent of £1.5m per annum subject to annual increases of 2.25% for the first fifteen years. Arup has also relinquished its option to take the remaining space on that floor. Including the space Arup previously committed to occupy, we have now pre-let a minimum of 276,900 sq ft or 86% of the total office space in the project for a rent of £21.8m per annum.
BCG also has the right to take up to a further 43,000 sq ft comprising 20,100 sq ft on the 4th floor, which was previously under option to Arup, and 22,900 sq ft on the ground and lower ground floors. The rent free periods on the let space are in line with the earlier Arup letting. Should BCG take up all their additional space this significant Fitzrovia building would be 99% pre-let.
The 80 Charlotte Street development campus totals 380,000 sq ft in three buildings designed by Make Architects and construction is due for completion at the end of 2019. 80 Charlotte Street is the largest building at 323,000 sq ft. The two other buildings total 12,000 sq ft of offices and 45,000 sq ft of residential space. Following today’s announcement a minimum 83% of the total commercial element is pre-let with BCG having the right to occupy another 13%.
John Burns, Chief Executive Officer of Derwent London, commented:
“We are delighted to welcome The Boston Consulting Group to our portfolio. The fact that two of the world’s leading professional consulting groups have committed to 80 Charlotte Street as their London headquarters so early in the construction process is proof of the quality of our product and its location. It also means that Derwent London has achieved over £35m of new lettings this year surpassing last year’s record by over 13% and our commercial space for delivery in 2019 is now a minimum of 48% pre-let.”
Andy Veitch, Partner and Managing Director of The Boston Consulting Group added:
“We are deeply excited to agree space for our future home at 80 Charlotte Street. Derwent and their design team have masterminded a truly spectacular scheme in this quiet and rapidly improving corner of Fitzrovia, close to the buzz of central London. This will be the perfect setting for our people to connect, develop and drive impact through our work. Derwent has led the market in providing us with flexibility and unique opportunities for our growth and our occupation strategy. We now look forward to creating our new home at 80 Charlotte Street, building on our workplace strategy, with the same innovative spirit as in New York, Los Angeles, Milan and our other offices.”
12/09/2017 07:59 by Buildington
A UK subsidiary of Arup Group has signed an agreement to pre-let 133,600 sq ft at 80 Charlotte Street, reports Derwent London.
The completion of the development is due in the second half of 2019.
Simultaneously, the Group has agreed a conditional put and call option to sell 8 Fitzroy Street W1 for £197m to Arup, who occupy the entire building, with completion expected on 23 June 2017.
At 80 Charlotte Street, Arup has agreed a 20-year lease on the first to third floors as well as part of the ground and lower ground floor space. The initial annual rent of £9.74m represents £75 per sq ft on the main office floors. The rent will rise by 2.25% per annum for the first 15 years, at which point there is an upward only open market review. In return, Arup will receive rental incentives equivalent to 33 months’ rent free. After allowing for the impact of indexation, the average rent over the first five years is in line with our June and December 2016 ERVs. Arup also has an option to take the 40,700 sq ft fourth floor.
John Burns, Chief Executive Officer of Derwent London, said:
“We are delighted to continue our long standing and close relationship with Arup in this mutually beneficial transaction. We have been able to facilitate the upgrade of Arup’s London headquarters and Arup will be the first occupier anchoring our major 80 Charlotte Street development. This complex transaction further de-risks Derwent London’s development programme, and is evidence of our asset management and letting skills, the desirability of our product and the advantage of owning a cluster of property in an attractive location.”
David Whittleton, Deputy Chair and Group COO of Arup Group, commented:
“This innovative deal offers real benefits to both Derwent and Arup, and was possible because of the strong and trusting relationship developed between our firms over many years. Arup is very pleased to have been able to secure its London future in quality space in the rapidly improving Fitzrovia area, where the firm has been based since inception, at attractive and predictable costs. We look forward to many more collaborations in the years ahead.”
JLL, Pilcher Hershman and CBRE acted for Derwent London. Strutt & Parker acted for Arup.
28/02/2017 10:19 by Buildington
At 80 Charlotte Street, demolition work is in hand, reports Derwent London. The 380,000 sq ft building is on track for completion in H2 2019.
Source: Derwent London 3rd Quarter Business Update 10.11.2016 www.derwentlondon.com
10/11/2016 11:33 by Buildington
The 380,000 sq ft 80 Charlotte Street development is now on site for 321,000 sq ft offices, 45,000 sq ft residential and 14,000 sq ft retail, reports Derwent London in Interim Results for 2016.
12/08/2016 11:33 by Buildington
80 Charlotte Street is expected to commence towards the end of this year.
Source: First Quarter Business Update by Derwent London 7. May 2015 www.derwentlondon.com
07/05/2015 20:00 by Buildington
Derwent London announced today that it has been granted planning permission by the Mayor of London for a major mixed use development at 80 Charlotte Street, Fitzrovia W1. The 367,000 sq ft (34,100m2) redevelopment will include 336,000 sq ft (31,200m²) of office, residential and retail space at 80 Charlotte Street and 31,000 sq ft (2,900m²) of residential at nearby 65 Whitfield Street and 1-8 Whitfield Place. In addition, a new public realm park will be created whilst retail units will enhance the ground floor frontage and identity.
80 Charlotte Street is an island site of 1.4 acres that is located in the heart of Fitzrovia. It currently comprises 200,000 sq ft (18,600m2) of out-dated offices which are let to Saatchi & Saatchi until March 2013. The new scheme, with anticipated capital expenditure of circa £125 million, is expected to be delivered towards the end of 2015 and will be a major step in the wider regeneration of the area where the Group’s holdings total over 1.5 million sq ft.
John Burns, Chief Executive at Derwent London, commented:
“We are pleased that our 80 Charlotte Street planning application has been approved by the Mayor of London. This is a significant scheme for the Group and gives us the opportunity to transform the existing buildings into high quality offices that will form an exciting new office hub in keeping with the Derwent brand. The park and ground floor retail space will create new life and character to the streets of Fitzrovia and the new residential units, that include affordable housing, will provide a high quality living environment. We look forward to starting on site in 2013.
Source: Derwent London
21/09/2011 01:01 by Buildington