Insurance giant Miller has gone under offer to occupy 86,000 sq ft at the long-stalled 70 Mark Lane tower, EC3, paving the way for construction to finally begin.
The company is in negotiations with Mitsui Fudosan and Stanhope to take the lower half of the 170,000 sq ft building, which is due to be delivered by 2014. It is expected to sign a lease for between 10 and 15 years at a rent of around £55 per sq ft.
Mitsui Fudosan and Stanhope bought 70 Mark Lane in December last year for £19.5m from Schroder Property Investment Management, with 90% of the equity coming from Japanese property firm Mitsui.
The 15-storey building will provide 160,000 sq ft of offices and 7,000 sq ft of shops, with a total development cost of around £100m.
The site, incorporating 64-66 Mark Lane, has lain vacant since 2005.
Talks with insurance giant AIG to take the entire building collapsed in 2008.
Miller occupies the 49,000 sq ft Dawson House at 5 Jewry Street, EC3 on a 35-year lease expiring 2016.
Allsop is advising Miller; DTZ is letting agent at 70 Mark Lane.
jack.sidders@estatesgazette.com
