GAM Holding Said to Halt London Office Plan After Brexitby
GAM Holding AG decided against leasing offices near London’s Buckingham Palace because of Britain’s vote to leave the European Union, according to a person familiar with the matter.
The Zurich-based asset manager was seeking to rent about 50,000 square feet (4,645 square meters) on the top floor of the Nova project, said the person, asking not to be identified because the information is private. The building, opposite Victoria rail station, is being developed by Land Securities Group Plc and Canada Pension Plan Investment Board. The companies declined to comment.
Demand for London office space will fall as businesses wait to see the impact of the Brexit decision before committing to new leases, Land Securities Chief Executive Officer Rob Noel said in May. Central London office prices could drop as much as 20 percent after Britain leaves the EU as companies consider moving to Europe or delay expansion plans in the U.K., according to Green Street Advisors LLC.
French cosmetics group L’Oreal SA has also postponed plans to lease a London
headquarters in the wake of the vote, according to a person with knowledge of
the plans. The firm is delaying negotiations for 150,000 square feet of offices
for at least three months to see if landlords will offer lower rents, the
person said, asking not to be named because the matter is private. A spokeswoman for L’Oreal declined to comment.