Bank of China moves in next to BoE in EUR 110m deal

Bank of China has acquired the One Lothbury development, adjacent to the Bank of England building in the centre of London's financial district, as its new HQ for £100 mln (EUR 110 mln). The new development consists of 10,600 m² of space in the Square Mile. The bank will house its retail banking branch on the ground floor and its staff over the remaining nine floors, international law firm Faegre & Benson said.

Faegre & Benson said the acquisition of the 150-year lease by the Bank of China from the Irish Roche family was one of the biggest commercial property deals this year as the bank expands its footprint in the UK and Europe. The freehold of the property is owned by the Bank of England. The law firm said advised in relation to the deal, having 'beat-off' stiff competition to win the brief. CBRE acted as property agents to Bank of China; Cushman & Wakefield for the Roche family; and Drivers Jonas for the Bank of England. Taylor Wessing advised the Roche family.

CBRE said Bank of China will fit-out the space before occupying the building early next year. The Bank of China will continue to hold its existing building in Cannon Street, where it owns the freehold. The bank is keen to increase its wholesale and retail business in the UK as the ‘bank of choice’ for corporate and personal customers with interests in China. The building will become the banks new headquarters, the broker added.

Stephen Pearson, senior director, CB Richard Ellis, commented: 'This is a significant deal for the City office market this year. Combined with other recent large transactions it is a sign that there is regained confidence in the market from overseas investors and the deal particularly signifies the growing importance of China-based companies in the London economy.'

Bank of China is the world's fourth largest bank and one of China's four state-owned commercial banks. Its businesses cover commercial banking, investment banking and insurances. Members of the group include BOC Hong Kong, BOC International, and BOCG Insurance.