REG - Derwent London PLC - New headlease agreed at 50 Baker Street W1

Derwent LondonAnnouncement

Tue 07:02

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RNS Number : 9267T  Derwent London PLC  05 August 2025

 Derwent London plc ("Derwent London" / "the Group")

 New headlease agreed at 50 Baker Street W1

Derwent London is pleased to announce that it has successfully agreed a new
125-year headlease (from scheme completion) for its 50 Baker Street W1
development with the freeholder, The Portman Estate. This follows receipt of
resolution to grant planning consent in August 2024 for this best-in-class
236,000 sq ft project. We have also appointed a contractor under a
pre-construction services agreement, ahead of the main construction contract
being placed in H1 2026.

The new headlease consolidates ownership of the existing buildings on the site
into a single headlease, with a ground rent of 7.5% of gross income from
completion. The Portman Estate will contribute its ownership interest of 62-64
Baker Street, giving Derwent London full control of the island site. No
upfront consideration is payable. Similar to the structure agreed at our
nearby 25 Baker Street project, part of the retail element will be sold back
to the freeholder.

This architecturally striking building, designed by AHMM, comprises 204,000 sq
ft of highly efficient office space, in addition to ground floor retail and 17
private residential flats.

In line with the Group's high standards in terms of sustainability and design,
this is an exemplary project with a class-leading embodied carbon intensity of
c.530 kgCO(2)e/sqm, well below the GLA's target. The scheme incorporates a
variety of circular economy measures, including a pioneering engineering
approach to the re-use of existing reconditioned concrete slabs. The use of
off-site manufacturing and the investigation of innovative concrete mixes will
further reduce embodied carbon, while improving the overall build quality. The
building, which is targeting a 5-star NABERS UK rating, has an enhanced
concrete core cooling system and openable windows throughout.

Paul Williams, Chief Executive of Derwent London, said:

"Building on the success at our 25 Baker Street project opposite and the
strength of our longstanding partnership with The Portman Estate, I am
delighted that we have agreed a new headlease at 50 Baker Street, enabling a
start on site next year. The shortage of well-located Grade A space is
becoming increasingly pronounced, particularly in Marylebone. That depth of
demand, combined with the building's quality and prime location, supports a
compelling rental outlook which sets the stage for strong returns."

Oliver Fenn-Smith, Chief Executive of The Portman Estate, said:

"We are proud to be working with Derwent London to deliver high-quality
office, residential and retail space at 50 Baker Street - further enlivening
Marylebone and our vision for the future of the Estate.  Commencement of the
development will mark an exciting milestone in our ongoing partnership with
Derwent London following the success of 25 Baker Street and Loxton Walk."

For further information, please contact:

 Derwent London                             Paul Williams, Chief Executive

 Tel: +44 (0)20 3478 4217 (Robert Duncan)   Vasiliki Arvaniti, Head of Asset Management

                                            Robert Duncan, Head of Investor Relations
 Brunswick Group                            Nina Coad

 Tel: +44 (0)20 7404 5959                   Peter Hesse

Notes to editors

Derwent London plc

Derwent London plc owns a commercial real estate portfolio predominantly in
central London valued at £5.0 billion as at 31 December 2024, making it the
largest London office-focused real estate investment trust (REIT).

Our experienced team has a long track record of creating value throughout the
property cycle by regenerating our buildings via redevelopment or
refurbishment, effective asset management and capital recycling. We typically
acquire central London properties off-market with low capital values and
modest rents in improving locations, most of which are either in the West End
or City Borders. We capitalise on the unique qualities of each of our
properties - taking a fresh approach to the regeneration of every building
with a focus on anticipating tenant requirements and an emphasis on design.
Reflecting and supporting our long-term success, the business has a strong
balance sheet with modest leverage, a robust income stream and flexible
financing.

We are frequently recognised in industry awards for the quality, design and
innovation of our projects. Landmark buildings in our 5.4 million sq ft
portfolio include 1 Soho Place W1, 80 Charlotte Street W1, Brunel Building W2,
White Collar Factory EC1, Angel Building EC1, 1-2 Stephen Street W1 and Tea
Building E1.

As part of our commitment to lead the industry in mitigating climate change,
Derwent London has committed to becoming a net zero carbon business by 2030,
publishing its pathway to achieving this goal in July 2020. Our science-based
carbon targets validated by the Science Based Targets initiative (SBTi). In
2013 the Company launched a voluntary Community Fund which has to date
supported 180 community projects in central London.

The Company is a public limited company, which is listed on the London Stock
Exchange and incorporated and domiciled in the UK. The address of its
registered office is 25 Savile Row, London, W1S 2ER.

For further information see www.derwentlondon.com
(http://www.derwentlondon.com) or follow us on LinkedIn

Forward-looking statements

This document contains certain forward-looking statements about the future
outlook of Derwent London. By their nature, any statements about future
outlook involve risk and uncertainty because they relate to events and depend
on circumstances that may or may not occur in the future. Actual results,
performance or outcomes may differ materially from any results, performance or
outcomes expressed or implied by such forward-looking statements.

No representation or warranty is given in relation to any forward-looking
statements made by Derwent London, including as to their completeness or
accuracy. Derwent London does not undertake to update any forward-looking
statements whether as a result of new information, future events or otherwise.
Nothing in this announcement should be construed as a profit forecast.

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