Transport for London picks Citi for Crossrail

Cross hire: TfL to sublease 116,074 sq ft in the tower
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£16bn cross-London project to take four floors in Canary Wharf tower

Transport for London (TfL) has chosen Citi’s 25 Canada Square for the head office of Crossrail.

TfL has agreed terms for its Crossrail team to take levels 27 to 30, which total 116,074 sq ft, at the 42-storey tower at Canary Wharf in London’s Docklands.

The quoting rent at the scheme is £46.50/sq ft and TfL has signed a 10-year lease.

It chose Canada Square over Clifford Chance’s 80,000 sq ft 10 Upper Bank Street, also at Canary Wharf, and Allied London’s Aldersgate building in the City of London for its £16bn Crossrail taskforce.

The decision by TfL means Citi now only has around 60,000 sq ft available at 25 Canada Square following its decision to put the surplus office space on the market last year.

As tipped by Property Week last August, Citi planned to sublet six floors at its Europe, Middle East and Africa (EMEA) headquarters in a cost-saving attempt, following the credit crunch in the summer.

The sublet to Crossrail follows Rhyme Systems taking 7,300 sq ft from Citi at £49.50/sq ft in April.

TfL has signed up at several locations as part of its plan to consolidate into fewer offices for all parts of its business. It is now one of central London’s largest occupiers.

Over the last two years it has already signed up for more than 700,000 sq ft of new space and now occupies 1.6m sq ft across 50 buildings.

It has already signed up to occupy more than 450,000 sq ft in the London borough of Southwark – 200,000 sq ft of which is at the proposed Shard near London Bridge and 264,000 sq ft in Royal London Asset Management and Blackfriars Investments’ Palestra.

TfL will also be the 135,000 sq ft anchor for the 300 acre Greenwich Peninsula development. It will move into the Quintain and Lend Lease scheme in 2009, and has an option for an extra 60,000 sq ft.

The transport body occupies a further 400,000 sq ft in buildings across Victoria, such as the 100,000 sq ft at its Windsor House headquarters on Victoria Street and 100,000 sq ft at 172 and 200 Buckingham Palace Road.

It also has an outstanding 250,000 sq ft requirement.

Drivers Jonas acts for TfL; Knight Frank and Cushman & wakefield advise Citi. None of the parties would comment.


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