Great Portland announces new lettings, leasehold acquisition

At the same time, it also announced that a “global investment firm” would occupy the fourth floor of One Newman Street for its new European headquarters, as well as the acquisition of the long leasehold interest at 7/15 Gresse Street and 12/13 Rathbone Place, W1, for £36.5m.

The FTSE 250 company said the three retail lettings were on average 12% ahead of CBRE's September 2021 estimated rental value.

It said that was reflective of “increasing confidence” in the continued recovery of the central London retail market by international and domestic retailers.

At Carrington House on Regent Street, suitcase and bag brand Tumi is relocating to a new flagship store, occupying 3,570 square feet across the ground and basement floors.

The company said the new shop would showcase Tumi’s latest store concept, and was expected to open in September with the travel brand's full collection of luggage on offer.

GPE also leased the adjacent unit of 2,650 square feet at 126 Regent Street to an undisclosed retailer, who was also relocating within Regent Street, to create a new flagship offer.

In addition, the GHS Limited Partnership - one of Great Portland’s joint ventures - has leased a further 2,590 square foot unit at its recently-completed development at Hanover Square.

It said 68 New Bond Street was let to a confidential luxury accessories brand, at a rent in excess of the CBRE September 2021 estimated rental value.

The retail letting was the fifth at Hanover, joining both Canali and Pronovias on New Bond Street and Moyses Stevens and Watchhouse within the courtyard space.

“These three deals show that London's retail market is turning a corner,” said senior portfolio manager Sarah Goldman.

“With footfall now recovering to pre-pandemic levels ahead of the Elizabeth line opening in the coming months, it's an exciting time for these brands to be opening their latest stores in the capital.”

At One Newman Street, Great Portland said the investment company had committed to a 10-year lease for 13,800 square feet of prime office space, in line with the September estimated rental value.

It said the tenant would move into its new workspace later in the year.

“We are delighted that this global investment firm has chosen One Newman Street for their new European headquarters,” said leasing manager Richard Carson.

“The transaction has demonstrated the increasing appeal of best-in-class workspace delivered by a partner that places a high value on sustainability, technology and customer service.

“We look forward to welcoming them to their new offices later this year.”

Finally, on the acquisition at Gresse Street and Rathbone Place, Great Portland said the purchase price equated to £847 per square foot, and a net initial yield of 5.6%.

The building had been home to the Fashion Retail Academy since 2005, which would remain in occupation until the precise timing for its relocation to a larger location was confirmed.

GPE described the location as “in the heart of Fitzrovia”, less than 200 metres from Tottenham Court Road station, with 43,000 square feet of space across five floors.

It would require “substantial upgrading” to bring it in line with customer demands, and the firm’s own net zero carbon commitments.

Following refurbishment, the board said the building would be suited to the company’s fully-managed ‘Flex’ offering, adding to its existing 250,000 square feet of space across central London.

“Gresse Street offers a fantastic opportunity for us to reposition these tired buildings with high-quality, fully managed flexible spaces designed with the customer at its heart and in a location that is full of opportunity,” said investment manager Robin Matthews.

At 0855 BST, shares in Great Portland Estates were down 0.55% at 723.5p.