News International has resurrected plans to take 180,000 sq ft at Land Securities’ Thomas More Square, E1, after securing a deal at just over half the original quoting rent.
Rupert Murdoch’s media empire, which terminated plans to take 150,000 sq ft in the building last November, has agreed a 10-year lease at a rent of £22 per sq ft.
LandSec bought Thomas More Square in 2007 for £252m and was at the time seeking up to £40 per sq ft for the space at the 562,000 sq ft campus.
News International plans to use the building for overflow to house various arms of its business, such asthe Sunday Times and newswire Dow Jones.
UK Payments Administration, the industry body formerly known as APACS, is also thought to have gone under offer this week for 40,000 sq ft at Thomas More Square. This would mean the campus is almost fully let.
Allsop partner Peter Lance said: “There are some very encouraging signs of increasing occupier activity, but there is still a long way to go on the road to recovery. Occupiers with the confidence that comes from having a strong balance sheet are starting to take advantage of the attractive terms on offer.”
News International, whose parent News Corporation earlier this month reported a $3.4bn (£2bn) net loss for the 12 months to June, scrapped plans last summer for a 500,000 sq ft office relocation in London. Instead, it opted to redevelop its existing “Fortress Wapping”site in Docklands, E1.
News International is advised by Jones Lang LaSalle, but agreed terms directly with LandSec.
