Morgan Stanley is planning to exercise its break option on one of its buildings at Canary Wharf.
The investment bank has told landlord Canary Wharf Group that it will exercise, with effect from 1 February 2010, the break option of the lease of 20 Cabot Square, which was due to expire in 2020.
The bank currently occupies 345,500 sq ft at 20 Cabot Square and will continue to occupy this space until February 2010 in accordance with the terms of its lease. Morgan Stanley will also continue to lease 546,500 sq ft at 20 Bank Street and to own and occupy the 448,500 sq ft building at 25 Cabot Square.
The rent derived from 20 Cabot Square equates to 3.8% of the rental income of Canary Wharf Group, which is 61% owned by AIM-listed Songbird Estates. Once the break clause is exercised the occupancy level of Canary Wharf Group’s investment portfolio will be 95.7%.
Three new tenants will shortly be occupying buildings currently being built at Canary Wharf. State Street will be moving into its new 300,000 sq ft headquarters at 20 Churchill Place later this year. It will be joined in 2010 by both KPMG in its 400,000 sq ft building at 15 Canada Square and Fitch in the 320,000 sq ft building at 30 North Colonnade.