Switch to hybrid working sees insurance firm cut office space by 30%
McKay Securities has agreed a lease renewal with insurer Domestic & General for 70% of the office space it previously occupied at Swan Court in Wimbledon, Sw19.
It comes as the warranty provider plans to move to a “hybrid working model”.
D&G has been based at Swan Court since McKay developed the five-storey building in 2006. It originally leased the entire 53,800 sq ft office block on a 15-year term, expiring in February 2021. Passing rent at the time was £2.35m per annum, or £43 per sq ft.
McKay Securities has agreed a lease renewal with insurer Domestic & General for 70% of the office space it previously occupied at Swan Court in Wimbledon, Sw19.
It comes as the warranty provider plans to move to a “hybrid working model”.
D&G has been based at Swan Court since McKay developed the five-storey building in 2006. It originally leased the entire 53,800 sq ft office block on a 15-year term, expiring in February 2021. Passing rent at the time was £2.35m per annum, or £43 per sq ft.
It will commit to a new 10-year lease for 37,400 sq ft across the second to fifth floors at a contracted rent of £1.76m per annum, with a tenant-only break in the fifth year. This equals £47.10 per sq ft.
The landlord said D&G will hand back the keys to the ground and first floors (16,400 sq ft) which was “part sublet and not occupied for a number of years”.
As part of the agreement, McKay will refurbish and improve the common parts of the building, revamp the reception area and create new tenant amenities, with the provision of bike storage and shower facilities.
McKay will also refurbish the ground and first floors, incorporating a 3,730 sq ft ground-floor retail space into office space available on flexible terms on completion of works in the autumn.
Simon Perkins, chief executive of McKay, said: “The improvement works will provide contemporary office accommodation and enhance our letting prospects for the two vacant floors in an undersupplied market.”
Nick Ulycz, chief operating officer at D&G, said: “Whilst in the last year we have mainly been working from home, we will be adopting a hybrid working model and remain committed to providing our colleagues with an office environment for collaborative working.
“The updated facilities at Swan Court will be a great place to meet with colleagues and clients to share and progress ideas.”
Savills acted on behalf of McKay; D&G was represented by CBRE.
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Photo by Colliers International
