Commerzbank is in advanced negotiations to assign its lease at 60 Gracechurch Street in the City of London to insurance group Allianz.

It is thought that the Allianz has agreed to occupy the entire 120,000 sq ft office building but it may release some space back to the market at a later date. The terms of the assignment and the rent agreed are not known yet.

60 Gracechurch Street is owned by Evans Randall. It is currently let to Commerzbank Corporates & Markets, the second-largest German bank, which said in May this year it would vacate the property and consolidate its operations at GIC Real Estate’s 30 Gresham Street following its purchase of Dresdner Kleinwort and a review of its UK property strategy.

Allianz, advised by Newton Perkins, has been looking to consolidate a range of offices it has across the City for some time. It was displaced at Aviva Investors’ and Atlas Capital’s 20 Gracechurch Street following Catlin's take up of 115,000 sq ft in the building and had to assess other options.

If the assignment completes it will scupper any plans law firm Clyde & Co, advised by BH2, might have had to occupy the building.

Allianz sold Dresdner Kleinwort to Commerzbank and has a long standing history with the group.