Great Portland completes office leasing at 18 Hanover Square

The FTSE 250 company said that, having concluded two office pre-lettings of around 111,000 square feet to Kohlberg Kravis Roberts and Glencore UK, the final transaction concluded the office leasing in the nine-storey headquarters building, less than six months after practical completion.

It said the total contracted office rent was £14.8m, ahead of the March estimated recovery value, with a weighted average unexpired lease term of 15.7 years.

Great Portland described 18 Hanover Square as a new nine-storey building, incorporating the eastern entrance to Bond Street station on the Elizabeth Line, “at the heart” of a 1.3 acre mixed-use development.

That development also comprised a new seven storey building at 1 Medici Courtyard, containing 31,000 square feet of new flagship retail units on New Bond Street with 33,300 square feet of offices above, where the second floor of 9,000 square feet was recently let to Lexington Partners, and the third floor of 9,000 square feet was currently under offer.

The development also included six luxury residential apartments at the junction of New Bond Street and Brook Street, which had all been sold, and 6,200 square feet offices in the Grade II-listed 20 Hanover Square, which was all under offer, alongside restaurant space, which was recently let to Colonial Property Co.

“From the off-plan deal with KKR, through to these recent transactions, our Hanover Square development has been highly sought after as an office destination,” said the company’s head of office leasing Simon Rowley.

“The final occupier in 18 Hanover Square faced competition for the space and their commitment is a welcome reminder of the continuing strength of London's core office markets.

“We have further interest in the remaining offices, which we expect to conclude in the near future.”

At 0945 BST, shares in Great Portland Estates were up 1.4% at 725.5p.