First phase of White Chapel 46% rented, says Derwent

Derwent London announced on Tuesday that it has pre-let 84,600 square feet in four office transaction at the White Chapel Building, E1, representing 46% of Phase 1.

The FTSE 250 firm said the refurbishment, totalling 185,000 square feet, has attracted a range of businesses including media, professional services and shopping.

It said the rent if £4m per annum, 8% above December 2015 ERV with around 70% signed since the EU referendum.

All are on ten year leases, with 59% subject to a five year break and half subject to minimum rental uplifts on first review.

Derwent said the average rent free period if eight months for the two leases where there are tenant breaks, rising to 17 months if no breaks are exercised.

“We are very pleased to introduce four new occupiers to our portfolio, three of which signed leases after the EU referendum,” said Derwent London chief executive John Burns.

“Their broad spread of activities and commitment is an endorsement of our strategy of creating a mid-market rental product in this significantly improved area on the eastern side of the City and the Tech Belt.”

The eight-level White Chapel Building was acquired with vacant possession in December, and the refurbishment of Phase 1 is due for completion in the fourth quarter.

Derwent reported that the majority of remaining space consists of the top three floors.

The building will include a new 7,000 square foot reception area with an independent cafe and an external terrace.

Derwent said Phase 2 will comprise predominantly of the lower ground floors, representing another 85,000 square feet of space where work could start in 2017.