Bar­clays in talks to shrink Lon­don of­fice space amid cuts

The Pak Banker - - FRONT PAGE -

Bar­clays Plc, the len­der cut­ting about 1,200 in­vest­ment-bank jobs, is in talks to sub­lease of­fice space Lon­don's Ca­nary Wharf fi­nan­cial district to the UK govern­ment, three peo­ple fa­mil­iar with the talks said.

The bank may lease about 300,000 square feet (27,900 square me­ters) of space at the 10 South Colon­nade build­ing to the govern­ment, the peo­ple said, ask­ing not to be iden­ti­fied be­cause the talks are pri­vate. A spokesman for Bar­clays, whose main head­quar­ters is at the 1 Churchill Place tower in the same district, de­clined to com­ment. The govern­ment reg­u­larly eval­u­ates pro­pos­als from the mar­ket, but doesn't com­ment on any com­mer­cial ne­go­ti­a­tions, a spokesman for the Cab­i­net Of­fice said.

Bar­clays Chief Ex­ec­u­tive Of­fi­cer Jes Sta­ley wants the bank to re­duce the amount of real es­tate it owns and leases this year to gen­er­ate "tremen­dous sav­ings," he said on March 1. Rents for the best space in Ca­nary Wharf were about 45 pounds a square foot at the end of last year, com­pared with 70 pounds in the City of Lon­don fi­nan­cial district, ac­cord­ing to data com­piled by bro­ker Col­liers In­ter­na­tional Group Inc. The UK plans to save 2b pounds over the next 10 years by sell­ing un­der­used his­toric build­ings and mov­ing work­ers to less ex­pen­sive of­fice space.

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