The joint venture between Henderson Global Investors and Istithmar P&O Estates have signed Macmillan Publishers Ltd for 82,500 ft² (approx. 7,660 m²) of office space in the final phase of the Regent Quarter development in York Way, King's Cross. Macmillan will be taking separate 15-year leases on each of the office buildings at a headline rent of £45 per ft².
The total office area covers 82,500 ft² and equates to a total annual rental income of ca. £3.41 million (approx. 4.21 million). In addition, the firm will be taking on a small restaurant and four apartments. The deal represents a significant investment for Macmillan who will be extending their existing campus for their international publishing operations in London and relocating many of their employees from Oxford and Basingstoke.
The Regent Quarter development is a joint venture between Henderson Global Investors, on behalf of its £675 million Central London Office Fund (CLOF), and Istithmar P&O Estates. Construction of the project is underway and the buildings are due to be completed in phases during 2013.
CLOF entered into a joint venture with Istithmar P&O Estates (IP&OE) last year to develop the final phase of Regent Quarter. Once completed, it will comprise two BREEAM Excellent office buildings totaling 75,250 ft², 39 residential apartments, the restoration of a 7,300 ft² grade II-listed former horse stable to studio offices and three retail/A3 units.
Peter Neal, Portfolio Manager within the Central London team at Henderson, said: "The agreement for lease with Macmillan represents a significant milestone for the project and follows the early success of the residential off plan sales initiative in Asia."
Graham Corser, Development Director at Istithmar P&O Estates said: "We are delighted that Macmillan has chosen Regent Quarter to become the heart of their campus at Kings Cross and their decision bears testament to the enduring strength of the overall development"
Charles Stafford, Head of Property at Macmillan, said: "We are creating a dynamic home for our publishing divisions in Kings Cross, and we will be able to promote collaboration and ideas sharing across our campus. This scheme will also enable Macmillan to leverage its scale, resources and expertise across its wider group".
Sales of the residential units within the scheme has been strong with over 50% of the one and two bed apartments having been sold off plan through agents Savills.
Cluttons and JLL act for the developer. The tenant was advised by GVA.