Deutsche Bank is in talks to regear several of its major London leases, kicking the City’s longest-running office requirement into the long grass for a further five years.
The European banking giant has long considered consolidating its London offices into a single headquarters, which could total as much as 1m sq ft.
Break options and expiries across the bank’s largest offices had been aligned for 2018, raising expectations that it would this year sign one of the largest prelets ever agreed in London.
However, Deutsche, which is advised by JLL, has now ruled out such a move until 2023 at the earliest.
At Winchester House, EC2 (pictured), the bank’s largest single London base, it has agreed to remove the 2018 break in its lease on the 312,000 sq ft offices, committing it to the China Investment Corporation-owned building until expiry five years later.
At British Land’s and GIC’s 1 Appold Street, EC2, Deutsche will extend its lease on the 220,000 sq ft building, postponing expiry from 2018 to 2023.
And at Garden House, 17-19 Throgmorton Avenue and 21 Austin Friars, EC2, it has agreed a five-year extension on its 50,000 sq ft lease, which had also been due to expire in 2019.
The bank additionally occupies several smaller London offices and it is expected to pursue regears on these buildings where necessary.
For well over a decade Deutsche has repeatedly dashed expectations that it would pull off a large London office consolidation.
From the late 1990s it has been linked with a potential move to Canary Wharf. More recently it has been tipped as the most likely occupant of Brookfield’s and Great Portland Estates’ 900,000 sq ft 100 Bishopsgate, EC2, development.
One City agent said: “Deutsche has dithered for years but the fact that more European banks are now doing deals again had raised expectations.”
Rival European heavyweight Société Générale last week agreed a 280,000 sq ft letting at Canary Wharf.
Crédit Agricole is also in the market with Squarebrook and JLL for up to 200,000 sq ft.
