ENERGY company Shell is set to move half its London staff to temporary offices in Canary Wharf next year, after it signed a 15-year deal with Songbird Estates yesterday.
It will lease ten floors of 40 Bank Street from Songbird, a wholly-owned subsidiary of the Canary Wharf Group (CWG), with the opportunity to rent additional floors later.
Shell will initially pay £37.50 per sq ft, valuing the first year of the deal at over £7m. It
has the option to break its tenancy after ten years.
George Iacobescu, chief executive of CWG, said: “We are delighted to welcome a world
leading occupier such as Shell to Canary Wharf. This is a worthy addition to the
increasingly diverse range of occupants.
“The letting is also a demonstration of the continuing attraction of our high specification office space and flexible approach in meeting occupier’s needs”.
Around 1,600 Shell staff will move to Canary Wharf during the last quarter of 2011, while it redevelops its UK base at Shell Centre Tower near Waterloo.
Shell is currently seeking a development partner for the project.
James Smith, chairman of Shell UK, said: “Shell Centre is our home in London. We want to redevelop it to its full, modern potential in keeping with the continuing development of London’s South Bank.”
Shell will join American law firm Skadden, lawyers Allen & Overy and ANZ Bank at 40 Bank Street.