25 Baker Street in Marylebone, London

The reimagined 25 Baker Street, initially known as 19-35 Baker Street, heralds a new chapter with a substantial footprint of 298,000 sq ft. The project, which began in October 2021, signifies a notable enhancement in our portfolio. Through a strategic partnership with The Portman Estate, we transitioned from a 55% share in a 69-year lease to sole ownership of a 129-year head lease on the principal 206,000 sq ft office component. This arrangement starts with a ground rent of 2.5%, scheduled to escalate to 6% after 29 years.

In addition, this development proudly features 45,000 sq ft of residential space at 100 George Street W1, crafted in collaboration with Native Land, alongside provisions for affordable housing. As a shift from our prior joint venture arrangement, which was split 55:45, we transferred the 19,000 sq ft of courtyard retail and the 12,000 sq ft Gloucester Place offices back to The Portman Estate.

In a notable advancement in February 2023, we secured a pre-let agreement with PIMCO, a leading global investment management firm, for 106,100 sq ft spanning the fifth to ninth floors, correlating to an annual rent of £11.0 million. This deal, which reflects an impressive £103 per sq ft, is locked in for a 15-year duration, presenting PIMCO with the opportunity to further expand into the fourth floor, an option viable up to a year before the project's completion. With this agreement, 56% of 25 Baker Street's commercial space is now pre-let or sold, not factoring in potential pre-completion expansions.

The estimated total capital venture approaches £270 million, leveraging funds from our 'green' segment of the revolving credit facility, underlying our dedication to sustainability. This project not only enriches our portfolio but also marks our first venture aiming for NABERS UK certification, targeting a BREEAM 'Excellent' rating. As of December 2022, the net Estimated Rental Value (ERV) stands at £18.4 million, with project completion anticipated in the first half of 2025.

25 Baker Street is a cornerstone development offering approximately 205,000 sq ft of innovative workspace and leisure. Surrounded by prestigious landmarks and culinary establishments like The Chiltern Firehouse and The Nobu Hotel Portman Square, the project is set to redefine Baker Street's west side. Featuring a brand-new building complete with an impressive staffed reception, shared terrace facilities, floor-to-ceiling windows, and state-of-the-art facilities, it squarely places itself as a modern emblem of work-life excellence. In line with creating a holistic lifestyle hub, the development boasts a new shopping and leisure stretch extending to Gloucester Place, further enriching the area's vibrant fabric.