Bank of America is to move its European headquarters to Canary Wharf after another tenant, Credit Suisse First Boston, found itself with surplus space at the giant London Docklands development.
CSFB had signed a deal with Canary Wharf in November 2000 to take an extra 500,000 sq ft in a new building, at 5 Canada Square, now under construction. However, given the global banking downturn, it is understood that the Swiss-American bank no longer needs so much more accommodation.
CSFB already has more than 1 million sq ft of offices in three buildings at Canary Wharf. It has agreed to sub-lease 260,000 sq ft of the new 14-floor building at 5 Canada Square to Bank of America, which will relocate its European headquarters there from sites in central London, with around 1,000 staff. The bank's other London staff will remain in their offices at Croydon and South Bromley.
Canary Wharf believes yesterday's announcement is a demonstration of the security of its earnings, which have been questioned as a result of the economic slowdown hitting its tenants. CSFB, which had signed a 25-year lease on 5 Canada Square, was obliged to find another occupier for the space it no longer required.Reuse content