19-35 Baker Street in Marylebone, London

The project at 19-35 Baker Street, encompassing a substantial 298,000 sq ft, began its journey in October 2021 and stands as a testament to modern development practices and sustainability goals. This development not only transforms the area but also marks a significant milestone with its comprehensive footprint that includes a crucial office component, residential units, and affordable housing options, signifying a well-rounded urban development initiative.

Spanning over 206,000 sq ft, the office element of the scheme has seen an evolution in its ownership structure, moving from a 55% interest in a 69-year lease to a full ownership model under a 129-year headlease, thanks to an agreement with The Portman Estate. This transition underscores a long-term commitment to the project and its potential impact on the local landscape. A notable feature of this lease arrangement is the ground rent schedule, which starts at an initial rate of 2.5% and is set to increase to 6% after 29 years, reflecting thoughtful financial planning and stakeholder investment.

On the residential front, the scheme proudly includes 45,000 sq ft designated for sale at the prestigious 100 George Street W1, in collaboration with Native Land. This endeavour not only adds a luxury component to the development but also incorporates affordable housing, ensuring a diverse and inclusive community space. Further emphasising the project's comprehensive approach, the larger portion of the remaining space is earmarked for pre-sale to The Portman Estate, effectively unwinding a previous joint venture and consolidating the development's vision.

Financially, the project is a powerhouse with a total estimated capital expenditure of circa £270m. It ventures into sustainable financing by leveraging the 'green' tranche of a revolving credit facility, reinforcing the development's commitment to environmentally friendly practices. The scheme aspires to be an exemplar in the field, aiming for a NABERS UK certification alongside a BREEAM 'Excellent' rating, positioning it as a pioneer in both sustainability and design within our portfolio.

Anticipated to reach completion in the first half of 2025, this development is not just a construction project but a future landmark poised to enhance the urban fabric of its locale through its dynamic office spaces, residential offerings, and commitment to high-quality, sustainable development practices.

*Note: This overview is based on preliminary information and is intended for informational purposes only, reflecting the project's vision and commitments as understood at this point in time.