Occupiers sign for Heal’s redevelopment

KKR and General Projects have secured two office occupiers for the iconic former Heal’s department store on Tottenham Court Road, W1, which the duo is redeveloping into a mixed-use scheme. The Mission Group, which is a collective of creative and martech agencies, has taken 11,500 sq ft on a 12-year lease at £90 per sq ft.  Wine and spirits merchant Bordeaux Index has signed a 10-year lease for 4,500 sq ft of space at a rent of £87.50 per sq ft. Existing tenants include Liverpool Football Club’s commercial team, TV production company Lime Pictures and communications agency the Creative Engagement Group. Heal’s will continue to trade at the location in a redeveloped ground and lower-floor space. The retailer has signed a 20-year lease. The mixed-use project, known as the Manufactory, will offer design-led office space to the next generation of creative occupiers.  An initial 35,000 sq ft of office space has been delivered so far, with a further 45,000 sq ft set to become available later this year. The completed development will contain 140,000 sq ft of creative-led workspace.  Jacob Loftus, chief executive of General Projects, said: “These lettings are testament to the strength of the offer we have created at the Manufactory. “We are building an ecosystem of savvy occupiers that have really bought into the creative community we are bringing together across this new urban campus.  “The historic department store itself is a huge draw and the location is fantastic in terms of connectivity, vibrancy and amenities.” Nicky Barker, managing director at KKR, said: “These lettings mark an important step as we continue to transform and reimagine this iconic space and further underpin our strong conviction in the long-term future of the building and our broader belief that high-quality London office space in prime locations has excellent fundamentals.” The estate spans eight adjoining buildings within a single city block. Features will include environmentally conscious heating and cooling, energy-efficient services and an internal courtyard. The redevelopment is targeting EPC A and BREEAM Excellent ratings. Once fully operational, it is set to be 100% powered by renewable resources. General Projects and KKR bought the Heal’s estate in 2021. KKR’s investment in the building was made via KKR European Real Estate Partners Europe II. RX London and Edward Charles & Partners advised on the latest leasing deals. To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews View average rents on Tottenham Court Road >> See which agents are doing the most deals in the West End >>