LONDON (Alliance News) - Great Portland Estates PLC on Friday said it has pre-let all the office space in its development at Rathbone Square in London to social media giant Facebook.
According to Great Portland Estates, Facebook has agreed to lease 227,324 square feet of office space, all of the consented office space at Rathbone Square.
Facebook will occupy the building on a 15-year term without break from practical completion to shell and core condition, scheduled for February 2017, and will pay an initial rent of GBP16.9 million after receiving 30 months rent free from completion of the offices and a capital contribution to fit out the building to a Category A condition.
In addition, Facebook has signed a conditional deal to lease a further 15,461 square feet subject only to Great Portland Estates obtaining planning consent from Westminster City Council. Great Portland Estates needs permission from the council to convert that space into office space from retail. That would leave Facebook occupying 242,785 square feet of space.
Following the pre-letting, 87% by value of Rathbone Square will be either pre-let or pre-sold.
Great Portland Estates said it has agreed to give Facebook rights of first offer on office space at 73/89 Oxford Street, W1, known as 1 Dean Street, on co-terminus leases with One Rathbone Square. The building is due to be completed in April 2017.
Facebook also has been given rights of first offer on office space at Oxford House, 76 Oxford Street, W1, again on co-terminus leases with One Rathbone Square. That is subject to Great Portland Estates being given planning consent from Westminster City Council for a comprehensive refurbishment of the building
Great Portland Estates shares were down 0.3% at 840.00 pence on Friday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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