Royal Bank of Scotland has instructed agents to sell the freehold of a 244,000 sq ft City office block it plans to vacate as part of its cost-cutting estate strategy.
Cushman & Wakefield is seeking offers in excess of £145m for Premier Place at 2.5 Devonshire Square, EC2, where the bank occupies the entire building.
The nine-storey building, which is situated at the northern edge of the City’s eastern cluster, designated by the City of London Corporation as appropriate for tall buildings and intensification, could represent a significant refurbishment or redevelopment opportunity.
RBS said it would vacate the block, where it has 6,500 desks, as part of a £750m cost-saving plan, revealed in its Q1 results.
The move follows its departure from 340,000 sq ft of offices at 135 Bishopsgate, EC2, which British Land and Singapore sovereign wealth fund GIC are planning to refurbish.
An RBS spokesman said: “As part of our strategy to reduce costs across the bank, we continue to reduce our property footprint and have previously announced our plans to exit Premier Place.”
The bank’s City 264,000 sq ft headquarters is at 280 Bishopsgate, EC2, which it also owns.
It also occupies the entire 280,000 sq ft of offices at M&G Real Estate’s 280 Bishopsgate, EC2, on a lease expiring in 2035.
RBS is expected to have to find funds to pay investors who were left out of pocket after being misled about the bank’s state of health ahead of a £12bn rights issue in 2008. The case could cost the bank £1bn.
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