Deutsche Bank to Lease Space in London's Zig Zag Buildingby
Land Securities says Victoria office building 77% pre-leased
German bank moving units from City of London district
Deutsche Bank AG agreed to lease 92,000 square feet (8,500 square meters) of office space in London’s Victoria neighborhood to bolster its asset and wealth-management businesses.
Germany’s biggest lender plans to move its asset-management and private-wealth units into the Zig Zag Building on a 15-year lease, London-based developer Land Securities Plc said in a statement on Tuesday. The deal means that 77 percent of the building as been rented ahead of its completion.
Soaring rents in the City of London have prompted companies to look for space outside the capital’s main financial center, in areas such as Victoria and King’s Cross. Land Securities has a development pipeline of more 2.2 million square feet in the neighborhood near the Victoria railway station.
The looming political battle over the U.K.’s membership of the European Union has yet to affect demand from occupiers in London, Land Securities’ Chief Financial Officer Martin Greenslade said in an interview. However, European banks may defer decisions on leasing new space until closer to the vote, he said. Prime Minister David Cameron has promised that a referendum will be held by the end of 2017.
“The bank plans to invest in and grow its asset management and private-wealth management businesses,” a Deutsche Bank spokesman said by e-mail. “The Zig Zag building will provide us with more modern facilities, bring us closer to many of our clients and create capacity for future growth.”
The Deutsche Bank units moving to the Zig Zag Building are currently based in the City of London, according to the statement. The company is taking six floors in the building, which will also be occupied by Jupiter Fund Management Plc, Mediobanca SpA and Egon Zehnder.