Arup will move its headquarters in London to 80 Charlotte Street, a 321,000-square-foot office development in Fitzrovia. The firm has struck a deal with Derwent London, the developer, to initially take 133,600 square feet of office space at £9.7 million per annum. In addition, the firm will buy the freehold for its current office location at 8 Fitzroy Street – which is 147,900 square feet and fully let to Arup – for £197 million.
Derwent London’s 80 Charlotte Street is a 321,000-square-foot office development in Fitzrovia. Aside from offices, the mixed development includes 45,000 square feet in residential properties, 14,000 square feet in retail and a new public park space. The development, which began in 2011, is set to be completed in 2019.
Arup, an engineering and consulting firm, is the anchor tenant for the new development, initially signing up for 133,600 square feet at £9.7 million per annum. The firm takes the first to third floors, as well as part of the ground and lower ground floor space. The firm, in addition, has the option to take the fourth floor, comprising of 40,700 square feet. The lease has been signed for a period of 20 years.
In addition to the new space, the firm has also acted on options in its current portfolio of office buildings in the capital. The firm has agreed, per option, to acquire the freehold of 8 Fitzroy Street – which is 147,900 square feet and fully let to Arup – for £197 million from Derwent London. In addition, the firm has signed an agreement with Workspace Group, for the option to acquire the freehold on 13 Fitzroy Street address.
David Whittleton, Deputy Chair and Group COO, Arup says that the firm is “very pleased” to have been able to secure its London future in quality space in the rapidly improving Fitzrovia area. He adds, “We see this as a bold investment in our future, in London and most importantly in our staff and clients. This innovative deal offers real benefits to both Derwent and Arup, and was possible because of the strong and trusting relationship developed between our firms over many years.”
Commenting on the transactions, John Burns, CEO of Derwent London, says that the firm is “delighted” to continue its long standing and close relationship with Arup in this mutually beneficial transaction. He adds, “We have been able to facilitate the upgrade of Arup’s London headquarters and Arup will be the first occupier anchoring our major 80 Charlotte Street development. This complex transaction further de-risks Derwent London’s development programme, and is evidence of our asset management and letting skills, the desirability of our product and the advantage of owning a cluster of property in an attractive location.”