South African bank Standard Bank is to relocate its London HQ to Hermes Real Estate and City Offices’ 20 Gresham Street development in the City of London.

It will take 107,000 sq ft at the 240,000 sq ft building which completes in September. The bank, advised by Spring 4, will relocate from its existing office at Cannon Bridge House where it has a lease expiry in September 2009.

The terms of the deal have not been disclosed but it is thought to have agreed a rent of around £57.50/sq ft on a 10 year lease.

The deal will be a significant boost to the City of London occupational market which has seen little letting activity in deals of more than 50,000 sq ft since the start of the year.

Sentiment in the City has been dampened by reports on falling rents, sharp falls in take up, and a development slowdown in the face of economic uncertainty.

Jones Lang LaSalle and DTZ are letting agents at 20 Gresham Street.