British Land and Blackstone in Broadgate boom
British Land and Blackstone have secured 400,000 sq ft of lease extensions and new lease deals at Broadgate, in the City of London.
Combined, the four deals 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.
The deals include a contract with law firm Herbert Smith, which has regeared its leases at Exchange House and 10 Exchange Square to occupy 315,000 sq ft for an extra 10 years to 2030. Herbert Smith will also benefit from further options to expand within both buildings.
F&C Asset Management has also regeared its leases at Exchange House, to occupy 54,000 sq ft of office space across two floors for 15 years until 2027. The rent on its lower floor will be subject to a minimum uplift to £48.50 per sq ft.
Brazilian bank Banco Itau has agreed to lease an extra 12,000 sq ft at the Broadgate Tower, taking an 8.75 year term at £54.50 per sq ft with 22 months free. The bank originally moved to Broadgate in December 2010, occupying 13,000 sq ft.
Finally, Japanese trading firm Itochu has also agreed to take another 6,000 sq ft of space at the Broadgate Tower, on top of the 26,000 sq ft it already occupies. The letting is at a headline rent of £62.50, with 18 months free for a term until December 2020.
Tim Roberts, head of offices at British Land, said: “These deals demonstrate how we are working with our existing occupiers to help them consolidate and grow in challenging conditions.”