Australian financial services company Macquarie has arranged to rent 210,000 square feet of London office space at the Drapers Garden scheme, not far from the Bank of England.
The group will occupy the majority of the development, paying a range of rents between £36.50 and £47 per square foot. The average rent will be around £43.50, but Macquarie is thought to have negotiated a four-year rent-free period on a 20-year contract.
At a time when other banks are making efficiency savings, Macquarie is going from strength to strength. The company did not require taxpayer assistance, and the credit crunch has provided opportunities for growth which has led to its recent expansion in Europe.
However, the rent-free period and relatively low rent remains a far cry from typical contracts two years ago, when prime rents in the capital were in excess of £70 per square foot.