Derwent London pre-lets more space in refurbished Stephen St office

11th Jul 2014 08:02

Central London-focused property group Derwent London has pre-let 28,000 square foot of newly refurbished offices on Stephen Street near Tottenham Court Road.PR firm Freud Communications is taking a self-contained unit on the lower floors at 1 Stephen Street. The letting has been agreed on a lease of 15 years at an initial rent of £65 per square foot, rising to £75 per sq ft after five years. An open market upward-only rent review will then take place after a decade.The initial five-year period will generate £1.8m in rent per annum for Derwent, rising to £2.1m per annum.The property is part of Derwent's 267,300 sq ft office and retail building across 1 and 2 Stephen Street, which fronts Tottenham Court Road. The block was purchased in 2010 and Derwent is currently refurbishing the building. Following Freud's letting, some 45% of the refurbished space has been pre-let."This letting is a further demonstration of the strength of the West End market and the growing attraction of Fitzrovia," said Chief Executive John Burns.The stock was broadly flat at 2,669p in early trading on Friday.BC