Lloyds Banking Group has gone under offer to let more than 100,000 sq ft at Alban Gate, EC2.
The bank has agreed terms with JP Morgan to sublet the lower six floors in the 382,000 sq ft building at 125 London Wall.
The move came as the government sold its second chunk of shares in Lloyds this week, raising £4.2bn and reducing its stake to 24.9%, down from an original 39%.
Lloyds occupies a cluster of nearby City offices, including 25 Gresham Street, 155 Bishopsgate, 33 Old Broad Street, all EC2, as well as 48 Chiswell Street, EC1.
It also leases space at Princes House, 1 Suffolk Lane, EC4 and Red Lion Court, SE1.
Alban Gate is expected to provide overflow space for the bank as it looks to return to full private ownership and expand.
It is thought to have agreed a rent of just under £40 per sq ft for the space.
JP Morgan instructed Cushman & Wakefield and DTZ to sublet the building in June 2011.
It agreed a deal with Nabarro for 117,000 sq ft on the building’s top floors in late 2012. It has since let two further floors to Invesco and the Financial Reporting Council and is in negotiations on the remainder.
JP Morgan’s lease expires in March 2025, reflecting an overall rent of £48.42 per sq ft.
Meanwhile, Carlyle, which holds the long-lease on Alban Gate, is poised to sell the building for more than £300m.
Gaw Capital Partners had placed the building under offer on behalf of investors earlier this year, but the papers were pulled on the deal last month.
Another overseas investor is now understood to have placed it under offer.
CBRE advised Lloyds; DTZ and Cushman & Wakefield act for JP Morgan; GM Real Estate is acting for Carlyle.
All parties declined to comment.
Jack.Sidders@estatesgazette.com
