A Ukranian energy giant has agreed to pay a record City of London office rent for the top floor of the skyscraper known as the Cheesegrater, EC3.
Dtek will pay almost £110 per sq ft for the roughly 7,000 sq ft space, at the top of the Leadenhall Building.
The deal represents a new record price tag for a long-term lease in the City, beating the previous high of £107 per sq ft agreed by Aegon Asset Management for another floor in the same building in 2016.
Dtek will move from its current Mayfair office at 25 Park Lane, W1K, to the space at the top of the 48-storey City of London tower.
It is an indication that firms are still willing to pay top City rates for premium space which will encourage staff to come back to the office after the current lockdown.
Market sources have also suggested that more West End occupiers could be moving to the City over the coming year, where rent and business rates are cheaper even on high-quality space.
It comes after the prolonged working from home guidance during the pandemic led to a 60% drop in central London office lettings last year. Central London take-up was just 4.3m sq ft in 2020, according to Savills, down on 10.8m sq ft the previous year.
The Leadenhall Building was bought by CC Land for £1.15bn in 2017. It was built by London-listed property giant British Land and Canadian firm Oxford Properties.
Dtek, which has businesses across the coal, natural gas and renewable energy industries, is controlled by Ukranian billionaire Rinat Akhmetov, who also owns the football club Shakhtar Donetsk.
CBRE advised Dtek on the deal. Both CBRE and CC Land declined to comment, while Dtek could not be reached for comment.
To send feedback, e-mail alex.daniel@egi.co.uk or tweet @alexmdaniel or @estatesgazette
