UBS finalises deal for Nationwide signs lease for new Broadgate consolidation Headquarters building Joint venture partners for the Broadgate The building society has signed a new 20 year Estate, British Land and Blackstone, lease on the whole of the refurbished have confirmed an unconditional pre-let One Threadneedle Street, EC2. agreement with UBS for a new 700,000 It will pay a rent of £65.00 per sq ft on the top sq ft UK Headquarters building, into floors in the building and a rent closer to which UBS will consolidate from its £50.00 per sq ft on the lower levels. It will existing Broadgate buildings. The new relocate its staff from its existing London facility will be built on the site of the 4 facility at 133 Holborn, WC1. and 6 Broadgate buildings, which are One Threadneedle Street, EC2 currently under demolition, and is scheduled to be completed by the end Integrated Financial Arrangements move to City core of 2014. UBS will hold a lease on the The portfolio management provided has signed a new lease on the whole of the entire building for a term of 20 years. refurbished 33 Lombard Street, EC3, totalling 56,000 sq ft, for a 15 year term. The The bank will pay a rent of £54.50 per average rent it will pay is circa £45.00 per sq ft. Its previous London headquarters sq ft, subject to annual increases in line were on Singer Street, EC2 outside of the City core district. with RPI and with a rent free period of 18 months. Financial Services Compensation Scheme to relocate to EC3 The FSCS has taken a sub-lease from US law firm Reed Smith on the 10th floor (26,221 sq ft) at Beaufort House, St Botolph Street, EC3 and will relocate from its current premises at Portsoken House, Minories, E1. The sub-lease is for a term of 10 years at a rent of £30.00 per sq ft with a rent free period of 24 months. Knight Frank advised Reed Smith on the transaction.

Bank of Tokyo Mitsubishi (BTMU) expands in Ropemaker, EC2 BTMU has expanded within Ropemaker to take a further 28,428 sq ft on the 9 th floor of the building by way of a sub-lease from Macquarie. BTMU already occupy circa 200,000 sq ft in the building. Knight Frank advise BTMU.

Spanish Bank BBVA to move from City to Canary Wharf BBVA has signed a new lease to move its City operations to One Canada Square from Cannon Street, EC4. The move will see the bank take up 29,161 sq ft on the 44th floor of the tower at a rent of £42.50 per sq ft for a 15 year lease term with a rent free period of 26 months.

Under construction: 5 Broadgate, EC2 Carlyle expands its space take in Berkeley Square The Carlyle Group has expanded its operations at Lansdowne House, W1 with the Schroders regears its lease of acquisition of a further 9,000 sq ft within the building on a short term lease to be 31 Gresham Street, EC2 co-terminous with its other leases in the building. Knight Frank continues to advise The bank has re-geared its lease on the Carlyle on its occupational strategy. whole of 31 Gresham Street, EC2. Schroders occupies the 160,000 sq ft Santander takes additional space in the West End building as its Headquarters had been Santander has taken an additional 19,189 sq ft at Portman House, Portman considering a relocation ahead of its mid Square, W1 by way of an assignment of oil trader Trafigura’s lease for an 2015 lease expiry. However, the bank unexpired term of 5 years at a passing rent of £65.00 per sq ft. Santander’s has now re-geared its lease with primary London offices are at 2-3 Triton Square, NW1. additional future flexibility and is continuing to look at its short to mid Monitise expands in the City core term strategy for expansion. The mobile money specialist has taken a new lease on 43,000 sq ft across the Knight Frank advises Schroders. upper floors of new development 95 Gresham Street, EC2. It has signed a new lease for a 15 year term with tenant break options after both 8 and 10 years. It is Central London Quarterly Financial Prudential Regulatory Authority Sector Take-up figures sign at 20 Moorgate, EC2 The newly formed financial services regulator has taken a new sub-lease on the whole of 20 Moorgate, EC2. The building extends to 152,000 sq ft. The PRA has made a 15 year old commitment to the building by way of a sub-lease from JPMorgan until 2019 and subsequent reversionary lease direct from building owner IVG until 2027. 20 Moorgate, EC2

Jefferies expands its premises in the City The investment bank has taken expansion space within Vintners Place, EC4 for an 8 year term. The additional space of 15,000 sq ft will bring the bank’s total space within the building to circa 110,000 sq ft. Knight Frank advises Jefferies.

Market Commentary The first six months of 2012 saw financial sector leasing activity slow further, with just 78 transactions totalling 446,000 sq ft across Central London – almost 50% below the long-term average level. The average size of unit leased was less than 6,000 sq ft and the largest transaction was Integrated Finance’s acquisition of 56,000 sq ft at 33 Lombard Street.

Availability across Central London remains relatively low with the vacancy rate at just 7.4%, while the forecasted delivery of new speculative development schemes remains manageable. However, a number of financial institutions are holding ‘grey’ space, which is unoccupied office space that is not being publicly marketed. This may slow the market recovery when the economic cycle improves. However, pre-letting from insurance firms is supporting demand levels, and the City is developing a new source of demand from the technology media and telecoms sector.

Bradley Baker Hedge Fund take-up in prime West End Head of Central London Tenant Representation Since Q1 2010 take-up in the West End core (Mayfair and St James) T +44 (0)20 7861 1256 for hedge funds has been above average; in fact levels have been [email protected] more significant than during the boom years prior to the financial Julian Woolgar crisis. Recent regulation allowing pension funds to invest in hedge Partner fund companies may however lead to a consolidation of these funds T +44 (0)20 7861 1008 and mark a move away from the historical small unit requirement in [email protected] the core and lead to pressure on demand for the larger high quality Jack Tomlin units within the core. Partner T +44 (0)20 7861 1701 [email protected] Philip Mitchell Associate T +44 (0)20 7861 1185 [email protected]

Daisy Reynolds Surveyor T +44 (0)20 7861 5348 [email protected] Key contacts Key Knight Frank LLP, 55 Baker Street, London W1U 8 AN T +44 (0)207 629 8171