Iceland’s largest bank is about to sign for the biggest West End letting this year.
Kaupthing, which took over UK-based bank Singer & Friedlander in April, is taking the remaining 95,000 sq ft of office space at the Crown Estate’s and Stanhope’s One Hanover Street in Mayfair, W1.
Kaupthing sees the takeover of S&F as a springboard for further UK expansion. It is expected to use the new building to bring all of its staff under one roof. Kaupthing has a 7,000 sq ft office at 89 New Bond Street, while S&F has 400 staff in the City at 21 New Street, EC2.
In December, computer and software company Apple took 25,800 sq ft of office space in the building, which adjoins its new 22,000 sq ft store on Regent Street. Apple is paying £63.50 per sq ft for its office space on a 15-year lease (4 December, p31), and Kaupthing is thought to be paying a similar rent overall.
Knight Frank’s head of West End agency, Tim Robinson, said: “This is good news for the West End. If you look at the number of options available for big requirements, there aren’t that many. When they get taken out of the equation, it concentrates the minds of other tenants.”
The letting to Kaupthing comes as other major West End deals begin to crystallise.
Internet giant Google is close to signing its deal for 40,000 sq ft at Grosvenor’s and JER Partners’ Belgrave House in Victoria, SW1.
And earlier this year 3i and P&O both signed up at Land Securities’ Cardinal Place, SW1, taking 61,000 sq ft and 30,000 sq ft respectively.
CBRE is advising Kaupthing. Jones Lang LaSalle, which is joint agent with CBRE on One Hanover Street, advised the landlord.
