17. August 2012 
Print
Print
British Land and Blackstone secure 400,000 sq ft of lease extensions and new lettings at Exchange House
British Land and Blackstone have secured four significant leasing deals at Broadgate. The combined effect of these deals is to add one year to the current weighted average lease length of Broadgate, to 8.5 years to first break or 10.3 years to expiry (as at 31 March 2012). This follows the recent 830,000 sq ft of lease extensions with UBS which facilitated their move to the 700,000 sq ft 5 Broadgate, which is let to UBS for an average of 18.2 years and will materially further add to the estate’s weighted average lease length.
The recent deals have been signed with:
• Major international legal practice Herbert Smith, which has regeared its leases at Exchange House and 10 Exchange Square. Herbert Smith will now occupy 315,000 sq ft of office space for an extra 10 years to 2030. Herbert Smith will also benefit from further options to expand within these buildings.
• F&C Asset Management (F&C), which has regeared its leases at Exchange House. F&C will occupy 54,000 sq ft of office space across levels 7 and 8 for a 15 year term until 2027. The rent on level 8 will remain unchanged, whilst on level 7 it is subject to a minimum uplift to £48.50 per sq ft.
Combined, these regears increase the weighted average lease lengths to first break at Exchange House and 10 Exchange Square to over 15 years and 10 years respectively.
• Brazilian banking group Banco Itau, which has agreed to lease an additional 12,000 sq ft of office space at level 19 of The Broadgate Tower. It is taking a 8.75 year term at £54.50 per sq ft with 22 months’ rent free. Banco Itau moved into the Broadgate Tower in December 2010, originally letting 13,000 sq ft at level 20 of the building.
• Japanese trading company Itochu, which has also agreed to take an additional 6,000 sq ft of space at The Broadgate Tower. The letting, at level 18 of the tower, is at a headline rent of £62.50, with 18 months’ rent free for a term until December 2020. Itochu moved into the Broadgate Tower in November 2010, originally letting 26,000 sq ft across levels 15 and 16.
The recent deals have been signed with:
• Major international legal practice Herbert Smith, which has regeared its leases at Exchange House and 10 Exchange Square. Herbert Smith will now occupy 315,000 sq ft of office space for an extra 10 years to 2030. Herbert Smith will also benefit from further options to expand within these buildings.
• F&C Asset Management (F&C), which has regeared its leases at Exchange House. F&C will occupy 54,000 sq ft of office space across levels 7 and 8 for a 15 year term until 2027. The rent on level 8 will remain unchanged, whilst on level 7 it is subject to a minimum uplift to £48.50 per sq ft.
Combined, these regears increase the weighted average lease lengths to first break at Exchange House and 10 Exchange Square to over 15 years and 10 years respectively.
• Brazilian banking group Banco Itau, which has agreed to lease an additional 12,000 sq ft of office space at level 19 of The Broadgate Tower. It is taking a 8.75 year term at £54.50 per sq ft with 22 months’ rent free. Banco Itau moved into the Broadgate Tower in December 2010, originally letting 13,000 sq ft at level 20 of the building.
• Japanese trading company Itochu, which has also agreed to take an additional 6,000 sq ft of space at The Broadgate Tower. The letting, at level 18 of the tower, is at a headline rent of £62.50, with 18 months’ rent free for a term until December 2020. Itochu moved into the Broadgate Tower in November 2010, originally letting 26,000 sq ft across levels 15 and 16.
