LondonMetric has agreed terms with two tenants for just over 70,000 sq ft at its 1 Carter Lane office development in the City

The firms are believed to be paying rents in excess of £60 per sq ft.

If the deals sign, they will take the building to 58% let, and sources suggest other tenants in the Square Mile are eying the remainder of the space with interest, attracted largely by the imposing views of St Paul’s Cathedral.

The 132,654 sq ft 1 Carter Lane is owned on a long leasehold interest with 136 years unexpired, and is currently vacant.

In February, SEB, one of the largest corporate and investment banks in the Nordic countries, appointed Gerald Eve to scour the Square Mile for up to 40,000 sq ft of offices.

SEB occupies around 30,000 in Scandinavian House at 2-6 Cannon Street, EC4, on a lease which expires in 2015.

MFS occupies around 16,500 sq ft at Paternoster House, 65 St Paul’s Churchyard, EC4, on a lease which expires in October 2014.

London & Stamford bought the long leasehold interest in 1 Carter Lane and Two Old Change Court in April 2011 from UBS Triton Property Fund for £75m, reflecting a net initial yield of 7.33%. The deal was funded with London & Stamford’s cash resources.

LondonMetric Property, a UK REIT which invests in retail, distribution and Greater London real estate opportunities, took vacant possession of the building earlier this year after Goldman Sachs, which previously occupied 97% of the building on a lease which was due to expire in 2018, exercised a break clause.

LondonMetric, headed by chief executive Andrew Jones and executive chairman Patrick Vaughan, was admitted on the Official List and to trading on the Main Market of the London Stock Exchange on 28 January as a result of the merger between London & Stamford Property and Metric Property Investments.


Source: James Buckley, CoStar News