Grosvenor, the Duke of Westminster's property company, has confirmed that Hayfin, one of Europe's leading alternative asset management firms, is the first organisation to sign at its 65 Davies Street development over the new Elizabeth line station in Mayfair.
CoStar News was first to reveal that Hayfin was taking 22,947 square feet of the total 65,000 square feet.
Rents being discussed for the top floor of the building are thought to be nearing £190 per square feet, which would be closing in on global records for office space. The UK’s highest office rent deal has been reported at around £275 per square feet and £250 per square feet in Mayfair at 30 Berkeley Square, but that was for closer to 3,000 square feet in October 2020. The highest reported prior to this was £190 per square feet in St James’s in 2017.
The Hayfin transaction brings the total of Grosvenor’s onsite developments prelet to over 50%. It follows lettings including Javelin Global Commodities at the Ice Factory in Belgravia and a number of designers signing at Newson’s Yard, a renovated timber works and extension to the Pimlico Design District.
65 Davies Street, directly above the western concourse of the new Bond Street Elizabeth line station next to Oxford Street, is scheduled to complete in autumn 2023.
Designed by PLP Architecture, the building features a public art installation by Clare Twomey and a green trellis installation on the south façade, with local species of wildflowers selected to enhance biodiversity.
Grosvenor is working with partners to invest £1.3 billion across Mayfair and Belgravia over the next 10 years, with 14 major projects and 1 million square feet of redevelopment already underway. This includes South Molton Triangle, a 2-acre mixed use £500 million project being partly developed in a joint venture with Mitsui Fudosan UK and the transformation of Grosvenor Square, London’s second largest square.
Hayfin will take the fourth and fifth floor at 65 Davies Street and in line with Grosvenor’s sustainability commitments, both parties have agreed green lease provisions.
Anna Bond, executive director – development at Grosvenor Property UK, said: “We’re delighted to secure Hayfin as our first occupier of 65 Davies Street. The recent opening of the Bond Street Elizabeth Line immediately below 65 Davies Street has really highlighted the exciting transformation happening in Mayfair.”
“Confirming this so far in advance of the building completing later this year, plus having 50% of our development pipeline pre-let is a positive endorsement of how successfully we are adapting our portfolio to meet the needs of modern occupiers, creating high quality space in excellent locations with great amenities.”
Knight Frank and JLL acted for Grosvenor, Hayfin was advised by CBRE.
Last year was a strong one for rents paid and take-up at London's most prime offices as the flight-to-quality trend continued. A record 1.3 million square feet across 110 deals achieved a rent of £100 per square feet or higher in Central London in 2022, while West End office leasing was at its strongest since 2000, reports CBRE.
Across the whole London market, take-up for 2022 totalled 12.3 million square feet, 28% above 2021, the adviser added.
It said the best-quality buildings saw high levels of demand in 2022 with the vast majority of high-value deals taking place in the West End. Thirteen deals outside the West End achieved £100 per square feet-plus rent. Since CBRE’s records began in 1984, the £100 per square feet level has only been breached outside the West End on seven occasions.