The previous record rent
level for London
office space has been broken – and by some margin – it is reported.
The Evening Standard says
that hedge fund Steadview has agreed to pay a rent of £250 per sq ft for space at
30 Berkeley Square
in Mayfair. This exceeds the previous record London office rent of £190
per sq ft.
According to the letting
agents CBRE, the space extends to 2,703 sq ft, overlooks Berkeley Square and offers views to Hyde Park along Mount
Street. Phillips auction house operate on the
lower ground, ground and first floors and their art exhibition extends into the
reception area of the building. In addition to the record rent there are
service charges of approximately £12.50 per sq ft and business rates of
approximately £50 per sq ft.
Management is an investment fund focused
on Asia, investing in both public and private
equity and is headed by founder and CIO Ravi Mehta. The firm represents institutional
investors including leading family offices, endowments, foundations, sovereign
wealth funds and pension funds.
Mayfair is, of course, an ultra-desirable but very niche market both for homes and commercial space. So this record rent is unlikely to be representative of the wider market. Despite the ability of hedge funds to splash the cash there was most likely just nowhere better or cheaper here for the money.