(Bloomberg) -- Legal & General Group Plc has signed a lease for a new City of London headquarters that’s a block away from its existing base.
The UK asset manager has rented 190,000 square feet (17,652 square meters) of space — slightly bigger than its existing premises — at the Woolgate, a refurbishment of the Woolgate Exchange building on Coleman Street and Basinghall Avenue, according to a emailed statement Tuesday. Work on the 320,000 square foot building is slated to complete in 2025 and L&G is expected to move in 2027 once it has fitted out its space.
Demand for new and upgraded office space in central London has held up even as developers have slowed new construction in the face of rising costs and higher rates, limiting new supply. That’s helped push up rents for the best buildings even as the wider commercial real estate market has been roiled by rising interest rates.
“Woolgate will offer our people a modern and enhanced working environment,” L&G Chief Executive Antonio Simoes said in the statement. “Woolgate is well-aligned with our commitment to the net zero transition, coming with strong sustainability credentials and will support our commitment to a net zero operational carbon footprint by 2030.”
Cathay Life Insurance Co. is the ultimate owner of the trust which owns the Woolgate building while developer Stanhope is carrying out the refurbishment. L&G has signed a 15-year lease, leaving 136,000 square feet of space left to be rented in the building.
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