Great Portland Estates pre-lets London offices to Bird & Bird

Great Portland Estates (GPE) has pre-let its new development 12/14 New Fetter Lane, London, to law firm Bird & Bird.

Bird & Bird has agreed to lease the 12-storey office building which covers 142,500 square feet (sq ft) in the city. The firm has the option to hand back up to 25,900 sq ft up to six months prior practical completion.

The legal business will take four 20.25 year leases, without break, and pay an initial rent of £8.27m per annum. They will receive seven months rent free from the at the beginning of the lease.

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GPE will offer £20.6m in cash in four equal quarterly instalments from lease completion to cover fitting out and other costs.

The development is held on a 154-year lease from the City of London Corporation at a 6.0% ground rent.

GPE will start demolition of the existing buildings on the site this summer with practical completion due 2015.

"We are delighted to welcome Bird & Bird to the latest GPE development. We are looking forward to working with their team to create for them a world class London headquarters in this outstanding building," said Chief Executive Officer of GPE, Toby Courtauld.

Shares rose 1.10% to 600p at 08:30 Monday.

RD