Top lender commits to London with new office

Deutsche Bank AG has chosen a new office for its London headquarters, signalling a vote of confidence in Britain’s capital despite the country’s decision to leave the European Union.

The German lender has entered into exclusive negotiations with developer Land Securities Group Plc over a 25-year lease on a new building to be constructed at 21 Moorfields in the City of London, according to a memo sent to staff on Thursday and seen by Reuters.

“The move underlines the bank’s commitment to the City of London and the importance it attaches to being an employer of choice in the capital,” the memo, sent by Garth Ritchie, Deutsche Bank’s UK chief executive and head of its corporate and investment bank, said.

Deutsche Bank, which employs around 7,000 people in London, is due to begin transferring staff to the new building, which will house its corporate and investment bank, in the second half of 2023.

“The site will provide a long-term, sustainable location for the Corporate & Investment Bank (CIB) and infrastructure colleagues who need to be situated alongside CIB. Locating these staff in one building will increase productivity and strengthen controls and communication between functions,” the memo said.

As Britain prepares to trigger Article 50 on March 29 and begin divorce talks with the EU, some financial firms have stepped up contingency plans on how to deal with any disruption that might ensue.

This week Goldman Sachs Group Inc said it would begin moving hundreds of people out of London as part of contingency planning to retain access to the single market even before Britain officially leaves the bloc.

Deutsche Bank, which employs around 9,000 people in Britain, currently has 15 buildings scattered across London, including its current CIB HQ at Winchester House in the City of London financial district.

In June 2015, the bank said it would move about 4,000 back office workers from five buildings in the City to one in Canary Wharf in the east of the capital, where much of Britain’s financial sector is now based.

In March, Deutsche Bank also started relocating employees from its asset management and wealth management divisions into a new building in Victoria, South-West London called the Zig Zag building.