The insurance cover means that Canary Wharf has more than five years to find a replacement tenant
Nomura is going to occupy the 350,000 square feet at the former Lehman Brothers’ Headquarters, after snapping up the European assets of the failed US investment bank – reported telegraph.co.uk.
However, the Japanese group is now in negotiations to move to the new 525,000 square feet Watermark Place development in the city, after agreeing terms.
According to the company, the bank’s departure would lead to Canary Wharf suffering significant losses, when Nomura’s £53 per square feet lease ends in September 2010. However, 25 Bank Street is protected as part of a securitisation agreement with AIG, the US insurance group, which underwrote the contracted rent for four years in the event of a payment default by Lehman.
The £224 million was ring fenced in December, and is therefore not exposed to further turmoil in the financial sector. The insurance cover means Canary Wharf has more than five years to find a replacement tenant, during which time the demand for new office space is expected to improve.