Deutsche Bank (ETR:DPW) has proved its commitment to London by confirming the building’s new lease agreement.
Despite previously saying that the lender would move jobs to Frankfurt, the bank has agreed to take at least 469,000 square feet on a 25-year lease.
London managing director of Landsec, Colette O’Shea, said: “We are delighted that Deutsche Bank chose to build on its existing relationship with us when it was selecting the site for its new London headquarters,”
The new building will allow the lender to have an estimated 9,000 employees, with flexibility over how much space it will occupy.
The bank’s building is waiting for planning permission but according to Landsec, the project will be completed in November 2021.
The signing of the new lease comes at a critical time, giving London a vote of confidence as it prepares to leave the EU. This is contrary to HSBC (LON:HSBA), who have set aside a £300 million budget to move jobs and operations to Paris.
“Europe must not allow its financial capacity and capabilities to be diminished,” said HSBC Chairman Douglas Flint said in the earnings statement. There is a question whether “the economies of Europe will continue to have access to at least the same amount of financing capacity and related risk management services, and as readily available and similarly priced, as they have enjoyed with the U.K. as part of the EU.”
Morgan Stanley (NYSE:MS) also plans to move operations out of London. The lender has chosen Frankfurt as its post-Brexit hub. They will relocate approximately 200 jobs.
“Come 2019, we might not be able to service [EU] business out of London. To do that we need a European hub, a regulated entity with capital and risk management. We need to establish a second main hub to London in Europe.” a source told the Guardian.