Japanese investment bank Nomura will not have to pay any rent until 2015 on its new London office space, under the terms of the contract for headquarters in the 525,000 square foot riverside property at Watermark Place.
Staff will relocate to the new premises next year, including many from the Lehman Brothers building in Canary Wharf, who Nomura inherited as part of their acquisition of the troubled investment bank in September 2008.
Nomura has signed a 20-year lease with landlord Oxford Properties. The initial rent is £40.50 per square foot, with upwards-only clauses. However, nothing will be paid for almost six years, bringing the average down to below £30 per square foot.
This is a significant reduction compared to prices at the top of the market only two years ago, when prime office space in the capital could fetch in excess of £70 per square foot.