Reuters has signed for around 283,000 sq ft (26,291 sq m) at 30 The South Colonnade, Canary Wharf, E14, as tipped on EGi (23 September 2003).
From May 2005, the global information company will occupy the entire building as its London headquarters.
Reuters has taken 239,000 sq ft (22,203 sq m) on a 15-year lease, with an additional 44,000 sq ft (4,088 sq m) taken on a separate lease with a fifth-year break exercisable upon payment of a substantial rental penalty and a further break at the 10th year.
Reuters is paying £35 per sq ft (£377 per sq m) for the 239,000 sq ft (22,203 sq m) for the first five years, with a fixed annual uplift to £40 per sq ft (£431 per sq m) in years six to 10 of the 15-year deal.
The deal includes a rent-free period of 12 months and Canary Wharf has taken on three of Reuters’ existing leasehold properties, representing the equivalent of around 2.5 years rent-free at 30 The South Colonnade.
Canary Wharf is also buying Reuters’ current HQ at 85 Fleet Street and the adjacent St Brides House, EC4, for £32.3m.
Reuters will lease 85 Fleet Street back from Canary Wharf for around £1.6m until May 2005.
If Canary Wharf sells the two EC4 buildings, Reuters will share in any profits achieved over and above acquisition and expense costs.
Following London Underground’s vacation of 30 The South Colonnade, Canary Wharf will spend £3m on refurbishments.
CB Richard Ellis advised Reuters and CBRE and Knight Frank advised Canary Wharf.
References: EGi News 09/02/04
