Deutsche Bank backs the City with 25-year commitment for London base
2nd August 2017
Deutsche Bank has signed a 25-year commitment for a new London headquarters, in a move that will inject confidence into the capital’s financial markets as the negotiations around Brexit continue.The bank has signed a deal to occupy a building in Moorgate currently being developed by Land Securities, called 21 Moorfields.Deutsche will take a minimum of 469,000 sq ft of space within the 564,000 sq ft building, with an option to expand at a later date. As well as being in the centre of the Square Mile, the location will benefit from a new Crossrail station.
Around 5,000 employees are expected to move to the new office when development is completed in 2023. Deutsche Bank employs around 8,575 people across the UK, but it is unclear whether the remaining staff will move to other locations or stay in some of its existing buildings.The bank had already spoken of its desire to consolidate its London staff under one roof, and it had an existing relationship with Land Securities because its asset management and wealth management divisions are in another of the firm’s buildings in south west London.News that Deutsche was in talks to take the building emerged in March, when an internal memo sent to staff was seen by The Telegraph.
There had been fears that some of the City's larger financial institutions would start to move staff away from the UK in order to establish a base within the European Union after the country leaves the bloc.Not only is the deal a boon for the sector, but the property industry will take heart that the traditional financial centre of the capital is continuing to attract the biggest banks.Huw Williams, analyst at UBS, said: “We see this as a clear positive for the City, as Deutsche Bank has confirmed its long-term commitment to a HQ there, and also did not go to Canary Wharf for cheaper rents.”Colette O’Shea, managing director for London at Land Securities, said: “We are looking forward to continuing our partnership approach and working with Deutsche Bank to meet its design requirements and business needs as we deliver its London headquarters.”After a turbulent few years, Deutsche Bank, which is Germany’s biggest lender, reported a significant boost to net profit in the first three months of 2017, indicating its restructuring was beginning to pay off.Profits at the group grew 143pc year-on-year to reach €575m (£487m) between January and March, significantly higher than analysts' expectations.