Saatchi & Saatchi is rethinking plans to take PRUPIM’s landmark Waterhouse Square in Holborn, EC1, for a new HQ.
The advertising agency’s parent, Publicis Group, had shortlisted the 181,000 sq ft building in October. It was set to take the entire block at 138-142 Holborn on a 15-20-year lease.
The group is based in 100,000 sq ft at Derwent London’s 80 Charlotte Street, W1, where it has a lease break in 2013. It pays £30 per sq ft at Charlotte Street, but this is expected to rise following the redevelopment of the 370,000 sq ft building.
Quoting rents on the vacant Waterhouse Square are £47.50 per sq ft.
Sources said the agency was “hedging its bets” to see whether Derwent could offer it a better deal at either Charlotte Street or at the REIT’s 75,400 sq ft refurbishment of the Buckley Building in Clerkenwell, EC1, which is scheduled for completion in late 2012.
One agent said: “I think Saatchi is hedging its bets. It is also in serious talks with Derwent, which will not make an exit strategy for the agency easy. Having a big name like Saatchi is important to Derwent.”
Saatchi has previously been linked with King’s Cross Central and the Shard at London Bridge. King’s Cross is not expected to be ready in time for its occupation; the Shard has been ruled out as too expensive.
CBRE and DTZ are letting agents on Waterhouse Square; DTZ also advises Saatchi.
