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Citibank to build in Docklands

Tom Stevenson
Wednesday 28 August 1996 18:02 EDT
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Canary Wharf claimed another scalp in its long-running battle to poach financial institutions from their traditional stamping ground in the City. Citibank said yesterday it was to build a 500,000 sq ft headquarters building in the Docklands office complex, joining BZW and Morgan Stanley, who have already made the move.

Citibank had previously indicated it was considering a move to a site on the south bank of the River Thames near London Bridge. It is understood the bank pulled out of those negotiations because of fears that environment secretary John Gummer would sit on any planning application due to the sensitivity of the riverside site.

Negotiations with Canary Wharf, which is thought to have offered a price advantage over the London Bridge option, are expected to continue until October. No precise terms were given for the deal, in which the US's second-largest bank will move 2,500 of its employees from its scattered London sites.

The move is the latest success for the Docklands office development which collapsed into receivership four years ago but which now claims 80 per cent occupancy of the 4.5 million sq ft of space that was completed before the property slump ended the 13 million sq ft project. The proposed Citibank office tower is the first meaningful new building to be erected in the scheme since its original developers, the Reichmann brothers from Canada, bought it back from the receivers. Building of the tower is expected to be completed within three years, by which time the Jubilee Line extension will be complete.

The tube link with the rest of London is being seen as the key development for the scheme.

Selwyn Jones, property analyst at Credit Lyonnais, said the London financial community could accommodate the City and Canary Wharf.

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