Pinnacle closes in on prelet with law firm

Khalid Affara's Arab Investments is understood to be close to securing law firm David Arnold Cooper as the first tenant for its 1m sq ft Pinnacle development in the City. 

Sources said the solicitor, which is based in 50,000 sq ft at Tudor Court on Bouverie Street, EC4, and 4,000 sq ft at 85 Gracechurch Street, EC3, was considering taking up 80,000 sq ft in the proposed 945ft skyscraper on Bishopsgate, EC2. It has lease expiries in 2013 and 2015.

The lawyer, which is retained by Arab Investments, is expected to pay up to £70 per sq ft.

Arab Investments confirmed that it was in discussions with two office tenants, each looking for around 100,000 sq ft, but refused to comment further.

The Pinnacle is scheduled for completion in 2011-12, although construction is dependent on the developer raising £600m of debt.

The potential prelet comes alongside a flurry of occupational activity in the City.

Inter-dealer broker ICAP has this week extended by 44,000 sq ft its HQ space at One Broadgate, EC2. It has taken an assignment of UBS’s lease at around £39.50 per sq ft, increasing its presence in the building to 175,000 sq ft.

Elsewhere, US law firm King & Spalding has taken 35,000 sq ft on a 15-year lease at Hammerson’s 125 Old Broad Street, EC2, at an average rent of £59.30 per sq ft. South African bank Rand Bank has gone under offer on 25,000 sq ft at 20 Gracechurch Street, EC3, and is expected to pay a rent in the mid-£50s per sq ft.

EGi News