01.09.09

By Deirdre Hipwell

Nomura has completed a deal to occupy the whole of Watermark Place office building in the City of London in one of the biggest ever speculative lettings.

The Japanese bank has agreed a 20 year lease at the scheme which is being developed by Oxford Properties Group, the real estate subsidiary of OMERS pension fund, and UBS Global Asset Management, through its UBS South East Recovery Fund (UBS-SERF).

Watermark Place is located on Angel Lane in the City Riverside district in EC4, and comprises 541,000 sq ft of office space. It was designed by Fletcher Priest.

Nomura agreed a rent of £40.50.sq ft with a 2% and 4% collar and cap on review and a net rent free of around four years from completion of the lease. WIth other contributions to fit out, car dropp-off enhancements and escalators the rent free equates in total to nearly six years.

Michael Latimer, president and chief executive officer of Oxford, said: 'Nomura is a stable, strong and growing participant in the global investment market, and Watermark Place offers them a strong and visible presence in the City.'

'We are delighted to be the new residents of Watermark Place. Our return to the Square Mile will be the final step in Nomura’s transformation in London,' said Sadeq Sayeed, Nomura CEO Europe and the Middle East.

'The timing couldn’t be better as the rate of our expansion means we need a bigger space to accommodate our growing teams and we need to be close to our clients to keep up with the current pace of the business.'

Nomura will begin fitting out immediately, and will start to occupy the premises in 2010.

The development manager is CORE.

Knight Frank and CB Richard Ellis acted for the landlord. Drivers Jonas represented the tenant.

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Source: Property Week (www.propertyweek.co.uk)