Deutsche Bank Leases UK Headquarters From Land Securities

Deutsche Bank has signed a lease for a new headquarters in London - home to the bulk of its investment banking workforce in Europe - keeping it in the United Kingdom capital for the next 25 years. The bank will retain flexibility over the amount of space it will occupy in the new building and has committed to take a minimum of 469,000 sq ft under the deal. A spokeswoman for Land Securities declined to comment on how much rent Deutsche Bank will pay.

Germany's biggest bank, which employs 7,000 people in 16 buildings across London, is committing to keeping staff in the city despite the Brexit vote and a reorganization within the lender itself.

Deutsche Bank's chief executive John Cryan earlier this month warned United Kingdom staff that roles may be shifted to Frankfurt as it prepares for a Brexit outcome that is "worse than people can imagine".

"We see this as a clear positive for the City", Osmaan Malik, head of pan-European property research at UBS Group AG, said in a note to clients.

Around 5,000 employees are expected to move to the new office when development is completed in 2023. The building is situated at the heart of London's finance district, above Moorgate underground station and the western entrance to the Liverpool Street Crossrail station.

The agreement builds on Landsec's existing partnership with Deutsche Bank, including the relocation of the bank's Asset Management and Wealth Management divisions to The Zig Zag Building in London SW1. Deutsche Bank, which is in the process of overhauling its businesses, said in March that the next phase of its plan will cause additional job losses.