16 July 2015
Royal Bank of Canada closes in on 100 Bishopsgate - Property Week article
Canada’s largest financial institution, Royal Bank of Canada (RBC), is in advanced negotiations with Brookfield to lease around 250,000 sq ft of space at the developer’s 100 Bishopsgate tower.
The bank has been on the hunt for a new City of London head office since last summer, but is now close to sealing a deal to become the anchor tenant at one of London’s most anticipated schemes.
The deal would be a huge coup for Brookfield and would vindicate its confidence in the market after deciding in May to speculatively build what will be one of the City’s tallest skyscrapers.
RBC is in discussions to let the five podium floors in the 37-storey tower, which have floorplates of 44,000 sq ft each, as well as further space in the 900,000 sq ft scheme. The 32 upper floors have floorplates of between 19,000 sq ft and 25,000 sq ft.
The Toronto-based bank is also thought to have considered moves to British Land and GIC’s 100 Liverpool Street as well as options in Canary Wharf, but is pressing ahead with talks at 100 Bishopsgate.
Work has already begun on the 613 ft tower, which is expected to complete in late 2018.
Last summer, RBC instructed agents at JLL to search for a new City HQ ahead of 2020 lease expiries at its two current offices, which total 160,000 sq ft.
RBC, which has 18 million clients and more than 80,000 employees worldwide, occupies 108,885 sq ft in Pace Investments’ Riverbank House near Monument and 50,000 sq ft in the Public Officials Benefit Association’s Thames Court.
Brookfield, which also has its headquarters in Toronto, took complete control of 100 Bishopsgate in November after buying Great Portland Estates’ (GPE) 12.5% stake for £15.74m.
GPE originally held 50% of the scheme until Brookfield upped its stake to 87.5% following a deal to buy 37.5% from GPE for £47.2m in October 2012.
Brookfield is investing hundreds of millions of pounds in the construction of the Allies and Morrison and Arney Fender Katsalidis-designed tower, which it is thought will be worth £1bn when fully let.
Knight Frank and GM Real Estate are letting agents on 100 Bishopsgate.
All parties declined to comment.
Read the article at: http://goo.gl/gSNXf2