Bear Stearns confirmed this morning that it would base its new European headquarters at Canary Wharf.

Bear Stearns confirmed this morning that it would base its new European headquarters at Canary Wharf.

The investment bank has agreed to prelease 206,000 sq ft (19,137 sq m) in the 300,000 sq ft (27,870 sq m) HOK-designed 5 Churchill Place building to the east of the Canary Wharf estate, as revealed by Property Week (p1, 7.7.6).

The deal means that Canary Wharf Group will immediately begin construction of the building, with a completion expected in summer 2009.

The 12-storey 5 Churchill Place is adjacent to the Barclays Bank headquarters and opposite the State Street Bank building, which is presently under construction.

Bear Stearns has agreed a 20 year lease at a rent of £40.50 per sq ft (£430.5 per sq m) with a rent free period of 20 months.

Michel Peretie, chairman of Bear Stearns in Europe, said: ‘This building represents a major milestone in the development of Bear Stearns' franchise in Europe and confirms our commitment to the region. Our new European headquarters will provide us with the space we need to accommodate the significant expansion that we envisage.’

George Iacobescu, chief executive officer of the Canary Wharf Group, said: ‘This news follows the announcement regarding the recent lettings to ANZ, Atos Euronext, JLL and Morgan Stanley.’

Canary Wharf was advised by Knight Frank and CB Richard Ellis and Bear Stearns was advised by CB Richard Ellis.