Land Securities has secured the first office tenant for its 560,000 sq ft One New Change, EC4.
US law firm Kirkpatrick & Lockhart Preston Gates Ellis has agreed to take 142,000 sq ft at the Jean Nouvel-designed scheme, opposite St Paul’s Cathedral, a year after it is completed in 2010.
The letting will involve K&L Gates moving out of another LandSec building, 110 Cannon Street, EC4, and follows Topshop signing to become a 25,000 sq ft retail anchor.
The scheme, which LandSec committed to build speculatively in February, comprises 220,000 sq ft of shops and 340,000 sq ft of offices.
K&L Gates had eyed the 140,000 sq ft Bow Bells House – also on Cheapside – but faced stiff competition from a string of occupiers.
These included the Bank of Tokyo, which held principal-to-principal talks with developers Mitsubishi Estates and Mitsubishi Corporation over a move to the scheme.
However, Bank of Ireland this week agreed terms for the top four floors at Bow Bells House.
It will pay £64 per sq ft for 66,000 sq ft.
The remaining 74,000 sq ft is expected to be let next week, with Russian bank VTB as one interested party.
CB Richard Ellis senior director Daniel Roberts said: “There’s a shortage of good-quality space, so there’s a lot of competition.
“Occupiers are taking prelets now so they don’t get caught out on rising rents in the future.”
St Martins Property Corporation’s 180,000 sq ft scheme at 150 Cheapside, EC2, has emerged as the front-runner for a potential overflow requirement from Investec.
The South African bank, based at St Martins’ 2 Gresham Street, EC2, has instructed Knight Frank to either look for 170,000 sq ft of overflow space or a wholesale 350,000 sq ft move.
CBRE advised K&L Gates; DTZ acted for LandSec; and King Sturge advised Bank of Ireland.
Cushman & Wakefield and DTZ are letting agents for Bow Bells House.
