London serviced office news 15th January 2014

Serviced office group i2 Office has signed for three high-profile London offices, taking its portfolio to more than half a million sq ft of business centres in the UK since it launched four years ago. The lettings come as the group prepares for international expansion.

In a trio of off radar deals i2 has signed for 23,000 sq ft of offices from Selfridges on Wigmore Street and sublet 22,000 sq ft of offices from Jones Lang LaSalle at 23 Hanover Square, both in the West End, while taking another 10,500 sq ft from Lend Lease and Quintain at 6 Mitre Passage at Greenwich Peninsula in east London.

In December of 2012 that retail giant Selfridges had bought the Nations House office development close to its famous home on Oxford Street from Hermes Real Estate Investment Management Limited. Selfridges has now signed i2 for 23,000 sq ft on the ground, first and part 6th floors on a lease at the 103,000 sq ft building at 103 Wigmore Street, W1. Selfridges staff have now taken up occupancy of 35,000 sq ft at the building.

Elsewhere in the West End, i2 has subleased the 22,000 sq ft 23 Hanover Square, W1, from Jones Lang LaSalle. The building was previously occupied by Brookfield which has relocated to 25,000 sq ft at its building in 99 Bishopsgate where i2 also has two floors. 23 Hanover Square has an internal link and shares lifts with 22 Hanover Square, the head office of Jones Lang LaSalle, in which i2 has a lease on the sixth, seventh and part of the second floor from JLL. Jones Lang LaSalle announced at the beginning of this year that it is to consolidate its West End teams in a move that will see it move out of 22 Hanover Square into 30 Warwick Street, which will become the firm’s new UK and EMEA HQ. The impending relocation of Bridgepoint Capital in January 2014 has given Jones Lang LaSalle the opportunity to occupy the whole of 30 Warwick Street, and as a result, the majority of teams currently housed at its Hanover Square office will move into the building by the end of Q2 2014. The building will accommodate around 900 people making it the largest JLL office in the world.

Finally, i2 Office has taken a further 10,500 sq ft from Lend Lease and Quintain at the 115,000 sq ft 6 Mitre Passage in Greenwich Peninsula. i2 already occupies 10,516 sq ft on the 8th floor and the letting gives it all of the 7th floor as well. Quoting rents are £32.50 per sq ft. Lend Lease and Quintain retain the asset separately from the majority of the Greenwich Pensinsula development which is being brought forward now by Hong Kong’s Knight Dragon.

These lettings mean that since launching in 2009 i2 has grown to 25 buildings in the UK located in prime locations in major city centres with 7,500 workstations. i2 occupies Grade A space principally on traditional 10 year leases.

Philip Grace, the CEO of i2 Office, said: “ These recent deals form part of a steady expansion of the i2 portfolio which will see further growth during 2014 taking us up to 30 buildings in the UK with half of these likely to be within London. Our priority remains to only select the right buildings in the best locations within major UK cities. "We recognise there is a finite supply of buildings that meet this criteria in the UK and are therefore now looking towards international expansion, potentially through acquisition or investment in existing serviced office operators. We are working with our shareholders in this overseas research, in particular OCS Group, the worldwide TFM business, which operates in over 40 countries with over 80,000 employees.”