Online restaurant delivery company Deliveroo will expand the size of its headquarters five-fold after signing up at Cannon Bridge House in the City of London, Property Week can reveal.
The popular takeaway app operator is under offer to take 51,500 sq ft at the Blackstone-owned scheme in the square mile.
It will move out of its current 10,500 sq ft HQ at Bedford Estate’s the Heal’s Building in Fitzrovia after experiencing exponential growth over the past two years.
Such has been the meteoric rise of Deliveroo, only two-and-a-half years ago it was run from a 1,400 sq ft unit at 76 Charlotte Street, in the West End.
The letting at Cannon Bridge House will see a few eyebrows raised in the property industry given the location of the building in the heart of the banking district and the firm’s snub of the City fringe and tech belt.
“The decision was purely building led,” a source close to the deal told Property Week. “They loved the building. Tenants, now, aren’t as concerned about location but the building itself and what it can offer.”
Rents in the City fringe areas of London, including Shoreditch, surpassed that of the City core a long time ago and with business rates set to surge in the tech belt next year, TMT occupiers are now seriously considering stock in the square mile.
“The City is reinventing itself and the quality of the new buildings, that are either new builds or refurbishments, are seriously impressive and exactly what the new breed of companies are after,” another source added.
“As these companies grow up I can see the City becoming more and more popular.”
Deliveroo launched the search for new headquarters earlier this year through BDG Sparkes Porter and had originally been focussed on the City fringe.
The deal will be a coup for Blackstone after completing a refurbishment at the 283,000 sq ft building earlier this year. It bought the office block, located on the River Thames, in early 2015 for £170m.
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