BlackRock have sensationally beaten Macquarie to take office space in Drapers Gardens, EC2.
Back in October, Macquarie had agreed to take 230,000 square feet in the development, which is owned by Canary Wharf Group and Exemplar Properties. But just before Christmas, landlords began to favour BlackRock after they placed the whole building under offer – 270,000 square feet. BlackRock are believed to have agreed rents of around £50 per square foot, considerably more than the £45 per square foot agreed by Macquarie.
This now means the Australian bank have been left with few options. The only remaining properties which are suitable for the bank are Minerva’s the Walbrook or space at Canary Wharf.
BlackRock’s agreement also means McDermott, Will & Emery are no longer possible tenants for Drapers Gardens. Prior to this deal, the law firm had been in advanced talks to take about 50,000 square foot at the development, once its lease at 7 Bishopsgate had expired.
In other London office space news, Stephenson Harwood have decided not to relocate to 150 Cheapside, EC2. The firm had agreed to take 110,000 square feet in the City back in September but the deal fell through after a fall out over contracts. Other groups now interested in the building include Daiwa, a Japanese bank, who are currently searching for a new 120,000 square foot HQ.