Great Portland Estates will kick-off the development of a 1.3-acre mixed-use Mayfair scheme after securing a prelet from international investment firm Kohlberg Kravis Roberts & Co Partners.
GPE, which is developing the site with its joint venture partner the Hong Kong Monetary Authority, said it has committed to construction of the Hanover Square Estate, W1, after letting 57,200 sq ft of office space on a 15-year lease to KKR.
The New York-based firm is to move from its current offices in St James’s to occupy four floors in a new nine-storey building at 18-19 Hanover Square, which will form part of estate.
The building will provide in total 127,600 sq ft of office space and 2,300 sq ft of retail space and incorporate the eastern entrance to the new Bond Street Crossrail station.
The Hanover Square Estate also includes a building on New Bond Street containing 31,300 sq ft of retail units and 33,300 sq ft of office space above and six residential units at the juncture of New Bond Street and Brook Street. In addition, there is 8,300 sq ft of restaurant space and 6,300 sq ft of offices at grade II listed 20 Hanover Square.
Toby Courtauld, chief executive at GPE, said: “Since completing the site assembly in 2008, we have worked closely with Crossrail and Westminster to masterplan the site around the proposed station to create a world-class scheme, on a premier garden square, in the heart of Mayfair.
“The preletting to KKR is a strong endorsement of the quality of the scheme, securing 21% of the overall gross development value, and is the largest letting in Mayfair for over 10 years.”
GPE secured its original planning approval for the development in 2011 after which in 2013 it sold a 50% stake in the scheme to the Hong Kong Monetary Authority for £202m.
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