Transport for London was due to take 200,000 sq m of space, but has been bought out by Sellar Group
Developer Sellar Property Group has bought out the single largest pre-let to its Shard of Glass development in a bid to re-let the space and secure higher rents.
Transport for London was due to take 200,000 sq ft of space in the 310m-high building, currently being constructed by Mace.
In a statement the developer said the company believes rents are rising strongly in the capital and demand for grade-A space is growing.
Contrary to media reports at the time, TfL, is understood to have negotiated a large discount on the space, with Sellar at the time keen to get an anchor tenant. It is understood the developer believes it will now be possible to get higher rents for the space.
However, the move could be seen as a high-risk strategy for the developer, with the only other pre-let in the 72-storey building to Shangri-La hotels, which is taking up to 20 floors.
The developer said it would be now helping TfL to identify new accommodation, but did not put a price on buying out its contract.
A spokesperson for LBQ said: “This agreement enables us to position the Shard at the very top end of the London office market.
“Together, the Shard and London Bridge Place will deliver more than 1m sq ft of Grade A offices located on one of London’s busiest transport hubs in a landmark building of the highest quality.”
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