Great Portland Estates (GPE) has confirmed that high street favourite New Look has pre-let the flagship unit in the firm’s ongoing 73/89 Oxford Street development. New Look will occupy a 31,800 sq ft unit split across the basement, ground, first and second floors of the complex when work is completed in April 2017.
As an occupier incentive, GPE offered the fashion brand a rent free period of 12 months from lease commencement, after which New Look will pay £3,650,000 per annum on the 20 year lease. However, New Look’s tenancy has one condition – GPE must first secure a change of use from the local council regarding the second floor area of the flagship unit, which was initially earmarked as office space.
New Look’s UK managing director, Danny Barrasso, believes the new flagship will help the brand to meet growth targets.
He says; “We’re very excited to be working with Great Portland Estates to deliver a world class New Look flagship store.
“This store, in what is going to be a prime retail location, strengthens our position as we continue to grow the New Look brand both in the UK and internationally.”
Although the opening of the development remains more than a year away, GPE has already commenced early preparation works on the site which lies directly opposite the Dean Street entrance to Tottenham Court Road’s upcoming Crossrail station.
The firm expects strong interest in units as the development progresses as, due to the central location and proximity to the new Crossrail initiative, footfall within the 90,500 sq ft mixed use Grade A office and retail complex is expected to be extremely high.
GPE is currently working extensively to regenerate the east end of Oxford Street, with almost 600,000 sq ft of schemes in the pipeline for this area alone. Now that New Look has taken up the flagship unit, the firm can turn its attention to marketing further space to be completed in 2017, with a second flagship store measuring 15,300 sq ft and 43,400 sq ft of Grade A office space available to pre-let at 1 Dean Street.
GPE chief executive Toby Courtald says; “We are delighted to have secured New Look for our latest development at 73/89 Oxford Street, W1.
“We are creating a world class flagship store for them in this outstanding building, in an increasingly exciting part of Oxford Street.
“The terms reflect the strong retail prospects in this part of Oxford Street and are positive for GPE’s ongoing and future developments.”
Great Portland Estates has a 3.6 million sq ft central London portfolio valued at £2,983 million. Along with retail and leisure operators, occupiers come from the TMT, banking and finance, corporate, professional services and government sectors.
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