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Nomura to shun Canary Wharf in favour of the City
Japanese investment bank Nomura is in exclusive talks to move its UK arm, including staff acquired from Lehman Brothers, from Canary Wharf to new offices in the City of London, the Financial Times newspaper reported today.
Without citing sources the paper said the bank has decided to move back to the City because it sees the area as better for clients and staff. The move will come as a further blow to the Canary Wharf development, where Lehman was based.
A spokesman for Nomura declined comment on the report.
The paper said the move, due to be announced later this month, was the largest office deal in the square mile since 2005.
The deal will see the bank move its 4,000 UK employees into Watermark Place, an 11 storey 525,000 sq ft office being built by the Thames, which has an outdoor roof terrace overlooking the Thames.
For Nomura's Japanese management, a shift to the Square Mile is symbolically important. The FT said Kenichi Watanabe, chief executive, is keen to brand the bank as a traditional City institution. Nomura are being advised by Drivers Jonas.
Once completed, the offices will house 5,000 people, giving Nomura room for expansion. The bank has been ramping up recruitment in the UK after the Lehman acquisition last year more than doubled staff numbers.
According to the FT Nomura is said to have struck good terms on the deal given the slump in the City office market. The bank is said to have agreed several years without rent as part of a 20-year lease.
The building is owned by Oxford Properties, which acquired a 250 year ground lease from UBS South East Recovery Fund in July 2007.
The decision will provide a boost to the poor City property market, where rents have fallen more than a third since the peak in 2007 and vacancies have risen.
Without citing sources the paper said the bank has decided to move back to the City because it sees the area as better for clients and staff. The move will come as a further blow to the Canary Wharf development, where Lehman was based.
A spokesman for Nomura declined comment on the report.
The paper said the move, due to be announced later this month, was the largest office deal in the square mile since 2005.
The deal will see the bank move its 4,000 UK employees into Watermark Place, an 11 storey 525,000 sq ft office being built by the Thames, which has an outdoor roof terrace overlooking the Thames.
For Nomura's Japanese management, a shift to the Square Mile is symbolically important. The FT said Kenichi Watanabe, chief executive, is keen to brand the bank as a traditional City institution. Nomura are being advised by Drivers Jonas.
Once completed, the offices will house 5,000 people, giving Nomura room for expansion. The bank has been ramping up recruitment in the UK after the Lehman acquisition last year more than doubled staff numbers.
According to the FT Nomura is said to have struck good terms on the deal given the slump in the City office market. The bank is said to have agreed several years without rent as part of a 20-year lease.
The building is owned by Oxford Properties, which acquired a 250 year ground lease from UBS South East Recovery Fund in July 2007.
The decision will provide a boost to the poor City property market, where rents have fallen more than a third since the peak in 2007 and vacancies have risen.
Mon, 6th Jul 2009