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Commercial Property News
Bank of China buys lease on building next to Bank of England to become new London HQ
Bank of China has acquired the One Lothbury development, adjacent to the Bank of England building in the centre of London's financial district, as its new HQ for £100 million.
The new development consists of 10,600 m2 of space in the Square Mile. The bank will house its retail banking branch on the ground floor and its staff over the remaining nine floors, international law firm Faegre & Benson said.
Faegre & Benson said the acquisition of the 150-year lease by the Bank of China from the Roche family from Ireland was one of the biggest commercial property deals this year as the bank expands its footprint in the UK and Europe. The freehold of the property is owned by the Bank of England.
Faegre & Benson advised in relation to the deal, having 'beat-off' stiff competition to win the brief. CBRE acted as property agents to Bank of China; Cushman & Wakefield for the Roche family; and Drivers Jonas for the Bank of England. Taylor Wessing advised the Roche family.
The Bank of China will continue to hold its existing building in Cannon Street, where it owns the freehold. The bank is keen to increase its wholesale and retail business in the UK as the ‘bank of choice’ for corporate and personal customers with interests in China.
CBRE said Bank of China will fit-out the space before occupying the building early next year. The building will become the banks new headquarters, the broker added.
Stephen Pearson, senior director, CB Richard Ellis, commented: 'This is a significant deal for the City office market this year. Combined with other recent large transactions it is a sign that there is regained confidence in the market from overseas investors and the deal particularly signifies the growing importance of China-based companies in the London economy.'
Bank of China is the world's fourth largest bank and one of China's four state-owned commercial banks. Its businesses cover commercial banking, investment banking and insurances. Members of the group include BOC Hong Kong, BOC International, and BOCG Insurance.
The new development consists of 10,600 m2 of space in the Square Mile. The bank will house its retail banking branch on the ground floor and its staff over the remaining nine floors, international law firm Faegre & Benson said.
Faegre & Benson said the acquisition of the 150-year lease by the Bank of China from the Roche family from Ireland was one of the biggest commercial property deals this year as the bank expands its footprint in the UK and Europe. The freehold of the property is owned by the Bank of England.
Faegre & Benson advised in relation to the deal, having 'beat-off' stiff competition to win the brief. CBRE acted as property agents to Bank of China; Cushman & Wakefield for the Roche family; and Drivers Jonas for the Bank of England. Taylor Wessing advised the Roche family.
The Bank of China will continue to hold its existing building in Cannon Street, where it owns the freehold. The bank is keen to increase its wholesale and retail business in the UK as the ‘bank of choice’ for corporate and personal customers with interests in China.
CBRE said Bank of China will fit-out the space before occupying the building early next year. The building will become the banks new headquarters, the broker added.
Stephen Pearson, senior director, CB Richard Ellis, commented: 'This is a significant deal for the City office market this year. Combined with other recent large transactions it is a sign that there is regained confidence in the market from overseas investors and the deal particularly signifies the growing importance of China-based companies in the London economy.'
Bank of China is the world's fourth largest bank and one of China's four state-owned commercial banks. Its businesses cover commercial banking, investment banking and insurances. Members of the group include BOC Hong Kong, BOC International, and BOCG Insurance.
Fri, 27th Nov 2009