By Sinead Cruise
LONDON, July 14 (Reuters) - Bloomberg LP is in talks to rent a swathe of new offices at The Walbrook development in London's City financial district, sources with knowledge of the matter told Reuters on Tuesday.
Bloomberg spokeswoman Judith Czelusniak denied that the company is in talks for the development, but said, 'As Bloomberg continues to add value to our all-inclusive service and expand our product development and customer service staff, we are planning for future expansion.'
The media company is considering leasing up to 402,000 square feet of space currently under construction by central London office developer Minerva at the landmark project, the sources said.
The 445,000 square foot Walbrook scheme, which was designed by international architects Foster and Partners, stands on a
1.6
acre site in the heart of the City of London. It is due to complete in December, according to Minerva's website.
The sources declined to give details on the rental terms under discussion but market speculation had it that rent was likely to be between 45 and 50 pounds ($72.45) per square foot.
The Walbrook development is frontrunner to land Bloomberg's signature, but one source said the company was also keeping a close eye on letting negotiations at another of Minerva's City office developments, St. Botolphs, in case a rival prospective tenant for the preferred Walbrook scheme came forward.
The 560,000 square foot St. Botolphs scheme is located on the eastern side of the City financial district and is scheduled to complete next summer.
Global insurance broker Lockton International signed up to lease 84,000 square feet of office space at the 14-storey development on a 20-year lease in January 2008.
Knight Frank and Cushman & Wakefield are the lettings agents on both projects. Both brokers and Minerva declined to comment on the possible move.
Bloomberg has been looking for a property in which it could consolidate its London workforce for many months. The majority of its employees are in two buildings on Finsbury Square, on the fringe of London's City.
It owns one of the buildings freehold, while the other is rented on a long lease not due to expire for several years.
Market sources said the company originally eyed a move to the Watermark Place development on the banks of the River Thames but Japanese bank Nomura managed to agree terms first.
MINERVA BOOST
News of the talks will provide a welcome boost to struggling central London landlords as well as Minerva's shareholders, who have seen their shares plunge by 80 percent in value in a year.
Last week, the indebted developer, which was also developing 192,000 square feet of private housing at Lancaster Gate, near London's Hyde Park, said talks with relationship lenders concerning its long-term debt position were ongoing.
Rents in London's City financial district tumbled to their lowest levels in more than a decade in real terms at end-June but signs of a recovery in tenant demand are slowly emerging.
Market sources said Bloomberg would have to move fast to secure the site, one of few London office properties due to complete in the next 12 months.
Australia's Macquarie has also looked at The Walbrook as well as mulling a lease at the 270,000 square foot Drapers Garden project between Bank and Liverpool Street after abandoning a search for a new London home when the credit crunch gripped.
(Additional reporting by Robert MacMillan in New York; Editing by Andrew Macdonald and Matthew Lewis)
($1=.6211 Pound)
(See www.reutersrealestate.com for the global service for real estate professionals from Reuters) Keywords: BLOOMBERG CITY/ (sinead.cruise@thomsonreuters.com; +44 (0)207 542 5154; Reuters Messaging: sinead.cruise.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
LONDON, July 14 (Reuters) - Bloomberg LP is in talks to rent a swathe of new offices at The Walbrook development in London's City financial district, sources with knowledge of the matter told Reuters on Tuesday.
Bloomberg spokeswoman Judith Czelusniak denied that the company is in talks for the development, but said, 'As Bloomberg continues to add value to our all-inclusive service and expand our product development and customer service staff, we are planning for future expansion.'
The media company is considering leasing up to 402,000 square feet of space currently under construction by central London office developer Minerva at the landmark project, the sources said.
The 445,000 square foot Walbrook scheme, which was designed by international architects Foster and Partners, stands on a
1.6
acre site in the heart of the City of London. It is due to complete in December, according to Minerva's website.
The sources declined to give details on the rental terms under discussion but market speculation had it that rent was likely to be between 45 and 50 pounds ($72.45) per square foot.
The Walbrook development is frontrunner to land Bloomberg's signature, but one source said the company was also keeping a close eye on letting negotiations at another of Minerva's City office developments, St. Botolphs, in case a rival prospective tenant for the preferred Walbrook scheme came forward.
The 560,000 square foot St. Botolphs scheme is located on the eastern side of the City financial district and is scheduled to complete next summer.
Global insurance broker Lockton International signed up to lease 84,000 square feet of office space at the 14-storey development on a 20-year lease in January 2008.
Knight Frank and Cushman & Wakefield are the lettings agents on both projects. Both brokers and Minerva declined to comment on the possible move.
Bloomberg has been looking for a property in which it could consolidate its London workforce for many months. The majority of its employees are in two buildings on Finsbury Square, on the fringe of London's City.
It owns one of the buildings freehold, while the other is rented on a long lease not due to expire for several years.
Market sources said the company originally eyed a move to the Watermark Place development on the banks of the River Thames but Japanese bank Nomura managed to agree terms first.
MINERVA BOOST
News of the talks will provide a welcome boost to struggling central London landlords as well as Minerva's shareholders, who have seen their shares plunge by 80 percent in value in a year.
Last week, the indebted developer, which was also developing 192,000 square feet of private housing at Lancaster Gate, near London's Hyde Park, said talks with relationship lenders concerning its long-term debt position were ongoing.
Rents in London's City financial district tumbled to their lowest levels in more than a decade in real terms at end-June but signs of a recovery in tenant demand are slowly emerging.
Market sources said Bloomberg would have to move fast to secure the site, one of few London office properties due to complete in the next 12 months.
Australia's Macquarie has also looked at The Walbrook as well as mulling a lease at the 270,000 square foot Drapers Garden project between Bank and Liverpool Street after abandoning a search for a new London home when the credit crunch gripped.
(Additional reporting by Robert MacMillan in New York; Editing by Andrew Macdonald and Matthew Lewis)
($1=.6211 Pound)
(See www.reutersrealestate.com for the global service for real estate professionals from Reuters) Keywords: BLOOMBERG CITY/ (sinead.cruise@thomsonreuters.com; +44 (0)207 542 5154; Reuters Messaging: sinead.cruise.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.