British Land and Singaporean sovereign wealth fund GIC have completed the signing of a 21-year lease agreement with global law firm Herbert Smith Freehills Kramer for 268,000 square feet of offices at 1 Appold Street, Broadgate by Liverpool Street Station.
CoStar News revealed the major transaction last August.
The deal will see HSF Kramer have its own entrance known as 8 Exchange Square, with options to take a minimum of 238,000 square feet or lease up to 360,000 square feet.
The deal means the building is 60% (by estimated rental value) prelet at a minimum and 100% prelet on the offices if the option space is taken.
The duo said the letting reflects the "continued strength of demand for prime, amenity rich workspace at Broadgate, where the campus is benefiting from strong occupational fundamentals and a tightening supply of high-quality space". Broadgate is virtually full, and the latest milestone letting sets "new rental tones and reinforces the campus’s position as one of the City’s most in-demand locations".
Skanska has been appointed as contractor on the redevelopment. The scheme is expected to complete in the first quarter of 2029, and will comprise 360,000 square feet of workspace with leading sustainability credentials, terraces overlooking Exchange Square and 48,000 square feet of leisure space, which is under offer to a gym and health club operator.
Kelly Cleveland, head of real estate and investment at British Land, said in a statement: “There is an increasingly diverse mix of global businesses choosing Broadgate for its connectivity and amenities, sustainability standards and public spaces.
“Herbert Smith Freehills Kramer’s decision to relocate across Exchange Square highlights how the quality of the public realm and amenity continues to shape occupier choice across the campus. Their commitment to retaining their London head office here continues our longstanding relationship, and reinforces the strong demand we’re seeing for exceptional workspace in the best locations, which helps people and businesses thrive.”
Tracy Stroh, head of Europe real estate at GIC, said: “This agreement with Herbert Smith Freehills Kramer reflects the strong demand for high-grade office space at Broadgate. We look forward to welcoming HSF Kramer to their new head office and to continuing our more than decade long partnership with British Land as we further develop the Broadgate Campus.”
Jeremy Walden, executive partner, UK and EMEA, at Herbert Smith Freehills Kramer said: "This exciting news marks a significant milestone in the strategic vision of our global business. We are delighted to be continuing our long-term relationship with the Broadgate joint venture. Its commitment to community, innovation and sustainability is fully aligned with our own values and ambitions. We are partnering to deliver a new, state-of-the-art environment that is designed around the needs of our people and clients and perfectly positioned to deliver the next phase of our London success."
Designed by Piercy & Company, 1 Appold Street is one of the last major redevelopments planned on the Broadgate Campus and proposes retaining 75% of the existing 1980s office building, while adding five floors to make 13 storeys.
JLL advised British Land. Cushman & Wakefield advised Herbert Smith Freehills Kramer.