KKR snaps up last slice of GPE’s Hanover Square scheme

Great Portland Estates has fully let its Hanover Square development, W1, with KKR taking the final 8,900 sq ft. KKR has added the fourth-floor offices in 1 Medici Courtyard on a co-terminus lease to the 9,000 sq ft it holds on the third floor, as well as its leases for the fifth to eighth floors of 18 Hanover Square, totalling 57,200 sq ft . The deal completes the line up for the 1.3-acre mixed-use scheme. GPE owns and developed the 221,000 sq ft scheme in a 50:50 joint venture with the Hong Kong Monetary Authority. The GHS Limited Partnership was created in 2013 when GPE transferred £202m of property into the jv. The scheme includes the nine-storey 18 Hanover Square, which comprises 127,700 sq ft of offices and 2,300 sq ft of retail space; 1 Medici Courtyard, a separate building on New Bond Street containing 31,000 sq ft of shops and 33,300 sq ft of offices; 20 Hanover Square, a Grade II* listed townhouse containing 8,200 sq ft of restaurant space let to The Maine and 6,300 sq ft of offices let to the London Fashion Academy; and 14 Brook Street’s six residential apartments, which are all sold. Toby Courtauld, GPE chief executive, said: “It is fantastic to have reached another exciting milestone at this landmark scheme. Since completing the site assembly in 2008, we have worked closely with Crossrail and Westminster City Council to develop the site around the new Elizabeth Line station and create a world-class development, on a premier garden square, in the heart of Mayfair. “Our leasing progress has been ahead of our expectations, completing with an average void of just over three months, at rents ranging up to £127.50 per sq ft and on an average term of over 13.5 years.” Compare with other recent deals in Mayfair >> Discover which agents are doing the most deals in the London markets >> To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews