Latest developments – membership spaces sold, rent-free agreement, corporate discussions

The first CCH hub location will be opening in Aldgate, London, in 2019, and we can now share some exciting developments –

• The landlord has agreed to rent 300 membership spaces per annum for the first 2 years. This delivers 60% occupancy on opening, with the expectation that the first site will be full within 12 months. This pre-let of the memberships significantly reduces the risk to the project from a slow take-up of memberships and delivering a further 50 memberships will achieve a breakeven position.
• In addition to taking the 300 spaces, the landlord has granted a two-year rent-free period and has agreed to reduce the per square foot service charge applicable to the space occupied by City Cycle Hub to 50% of that charged for the remainder of the building, reflecting the service being provided by CCH to the tenants.
• The landlord has also agreed to assist CCH through introductions to tenants with a view to increasing the number of members from the building.

Progress is also being made in discussions with other corporate parties, all of whom have approached CCH –

• A major insurance business located near to the Aldgate site has shown interest in promoting the facility to its employees and is seeking greater clarity on timescales/commencement of the fit-out.
• CCH have held informal discussions with a major travel organisation and it is interested in the concept, although the current site is too far away from its Kings Cross location to be relevant at this time. However, it's been indicated that a more local site would be of interest and that a similar facility at its Paris base would be helpful, so this could be a potential key customer for a subsequent site.
• There's also been interest from a finance sector business with 2,000 employees located within the catchment area of the first site.

We can’t name the parties at this time, but the CCH team are updating us regularly with their progress, and we will share further details about these, and other, ongoing discussions when possible.