Office Group to sign for Derwent's White Collar Factory

The Office Group is on the cusp of signing a deal to lease three floors at Derwent London’s White Collar Factory scheme - in what will be the first letting at the £200m speculative office development.

The serviced office provider will go under offer to take around 40,000 sq ft at the 16-storey building located at the Old Street interchange, or ‘silicone roundabout’.

White Collar Factory, which is at the heart of the government’s vision for a ‘tech city’ stretching from the City fringe to the Olympic Park, is already home to a cluster of entrepreneurial TMT firms. The deal will be a major fillip for Derwent London, which pressed ahead with the speculative development of the 267,000 sq ft building, starting on site in January 2014.

The scheme is due to complete in late 2016 and is being built on the south-western curve of Old Street roundabout. Designed by AHMM, it is clustered around a new public courtyard, and comprises an additional five low-rise buildings offering 39,200 sq ft of workspace as well as three restaurants.

Earlier this year, The Office Group signed up for 34,000 sq ft at another Derwent London scheme, at the revamped 2 Stephen Street near Tottenham Court Road in the West End.

As part of that deal, Derwent London will receive a share of The Office Group’s profits on the space above a threshold level in return for a capital contribution of £1.8m. It is thought a similar deal will be struck between the two at White Collar Factory.

Cushman & Wakefield, Pilcher Hershman and DTZ are letting agents on White Collar Factory. The Office Group was unrepresented. All parties declined to comment.