Nomura agrees six years rent-free at Watermark Place

01/09/2009 09:08

Japanese investment bank Nomura has completed its letting of a new City headquarters at Watermark Place, EC4, in a deal that includes a six-year rent-free period.

The bank will move up to 4,000 staff at its UK business, including those taken on as part of its recent acquisition of Lehman Brothers, into the entire 12-storey, 541,000 sq ft office development on the Thames.

Nomura will pay an average rent of £40.50 per sq ft overall, with a headline rent of £44. It also secured 50 months rent free, as well as capital allowances and contributions towards fit-out costs which amount to a combined 69 months rent free.

It means Nomura will not have to pay any rent until May 2015. There will also be a minimum rental uplift at year five of £45 per sq ft, to rise by at least 2% compound growth pa, and open rent reviews at years 10 and 15.

Landlords Oxford Properties, the property arm of Ontario pension fund OMERS, and UBS, in conjunction with development manager CORE, said the deal was the largest non prelet leasing transaction in the UK office market.

It added that the Fletcher Priest-designed offices on Angel Lane in the City Riverside district would complement Nomura’s existing European headquarters based in St Pauls.

“Nomura is a world-class organisation and Oxford is pleased to welcome them to Watermark Place,” says Michael Latimer, president and chief executive officer of Oxford.

“Nomura is a stable, strong and growing participant in the global investment market, and Watermark Place offers them a strong and visible presence in the City.”

Nomura CEO Europe and the Middle East Sadeq Sayeed said: “We are delighted to be the new residents of Watermark Place. Our return to the Square Mile will be the final step in Nomura’s transformation in London.”

Drivers Jonas partner, Mark Lethbridge, who advised Nomura, said: “This deal provides a world class new building for Nomura and is also a genuine win for all parties.”  

Paul Brundage, Oxford Properties’ executive vice president of global asset management, said: “The deal is reflective of market terms and creates long-term value for our investment in Watermark. It shows our commitment to London and will allow us to build our investment portfolio in the capital.”

Nomura will begin fitting out immediately, and will start to occupy the premises in 2010.

Knight Frank and CBRE acted for the landlord while Drivers Jonas represented the tenant.

 EGI News