Barclays has taken control of its Canary Wharf tower in a £750 million deal which the bank says reinforces its commitment to the City and office working.
The banking group has acquired a long-term lease in the London-based global headquarters from Canary Wharf Group (CWG).
The building at One Churchill Place in Canary Wharf has acted as its global headquarters since 2005.
The companies said the purchase secures Barclays’ control of the office beyond the current lease term which runs to 2039, and provides greater certainty over the long-term costs of occupying the space.
The acquisition values the 999-year leasehold interest – which is a typical long-term property agreement – at £750 million.
Barclays said it had been investing in the 32-floor tower, including creating flexible spaces to adapt to changing working patterns.
CS Venkatakrishnan, Barclays’ group chief executive, said: “This acquisition gives us long-term certainty, greater flexibility over our London footprint and reinforces our continued confidence in London as one of the world’s leading global financial centres.”
Shobi Khan, CWG’s chief executive, said the decision was “a strong endorsement of both Canary Wharf and London”.
“It underlines the long-term confidence that leading businesses continue to place in the district as a location where they can invest, grow and bring people together,” he said.
Last year, global investment banking giant JP Morgan Chase announced plans to build a new tower in London’s Canary Wharf which will be three million square feet and house 12,000 of its staff.
The company’s chief executive said the office “will represent our lasting commitment to the City, the UK, our clients and our people”.
Meanwhile, HSBC is planning to exit its Canary Wharf tower by 2027 when its current lease expires, and relocate the global headquarters to London’s St Paul’s.
But it reversed plans to fully leave Canary Wharf by signing a new 15-year lease on a smaller office in the financial hub.
