Commerzbank is to consolidate its UK investment banking operations at GIC’s 30 Gresham Street in the City of London following its purchase of Dresdner Kleinwort and a review of its UK property strategy.
The second largest German bank Commerz completed its acquisition of Dresdner Kleinwort’s investment banking business on Monday.
Directors on the management board have now decided the combined business, which will be known as Commerzbank Corporates & Markets, will be best accommodated in the 388,000 sq ft 30 Gresham Street office which was purposely designed for investment bank trading.
As part of the rationalisation move, which should be carried out by the end of this year, the two banks will release potentially around 177,000 sq ft of space in the City of London back to the market.
Commerz Bank will vacate space in two City buildings including Evans Randall’s 60 Gracechurch Street and Intercapital’s Sherborne House. Dresdner Kleinwort will vacate space it occupies at Invesco Real Estate’s 125 Wood Street.
Dresdner Kleinwort moved into the Land Securities-developed 30 Gresham Street building in 2005 following a complete refit of the building to suit the needs of the bank's business and staff.
A spokeswoman for Commerzbank Corporates & Markets, said: ‘As the chosen building in London in future, Gresham offers the space for the combined staff base, excellent meeting facilities and trading floor accommodation. The aim is to start the migration of businesses into the building in the second half of this year and complete the move process by the end of the year.’
The decision comes after a thorough review of the two banks’ existing London property commitments taking into account space requirements, costs, leases, infrastructure and facilities.
The review was conducted by the head of international units at Commerzbank Ben Almond. He is now responsible for all of the bank's properties on a global basis excluding Germany.
Further decisions on which consolidated buildings will be used in Frankfurt, New York and other locations are expected soon.
The rationalisation does not impact Eurohypo, the property and public finance lender which is owned by Commerz Bank, which is based at 90 Long Acre near London’s Covent Garden area.